Friday, October 3, 2025
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Colonial era treaty is a fairy tale

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No earthly power will stop Ethiopia from building the dam

Threatening Ethiopia on developing of the Grand Ethiopian Renaissance Dam (GERD) is unacceptable and a waste of time said government officials.
The project that is being constructed on Abay (Nile) river near the boarder of Sudan has become a source of disagreement between Ethiopia and Egypt for the past years.
Though Ethiopia disclosed that the project would not have significant harm on downstream countries, Egypt claimed that the project would affect its share of water without any concrete evidence.
Egypt tirelessly claimed over the years that the project would minimize its ‘historic water share’ without even giving a slightest concern for the people of Ethiopia and their development.
In the latest conditions since Ethiopia rejects the involvement of any external body on the negotiation of the three countries Egyptian media outlets have been disseminating several threatening reports that mock Ethiopia.
On Friday March 13 during a discussion about Abay, GERD and related issues Hirut Woldemariam, Minister of Science and Higher Education, strongly stated that because of Abay Ethiopia is being threatened by external powers.
“Because of utilizing our national natural resource, military warning, refusal to access of finance and enforcing other tactics should be stopped,” she said.
She also stated the treaty that was signed during the colonial era without Ethiopia is a simple fairy tale that Ethiopia will never recognize.
During the week Ethiopian senior military and security officials who paid a visit to the project, announced that the country is fully ready for a full-fledged military response.
A delegation led by General Birhanu Jula, Deputy Chief of Staff and Military Operations Division Head of the Ethiopian National Defense Forces, visited Sudan and met with Prime Minister Abdela Hamdok, who survived an assassination attempt earlier on the week, and other top Sudanese officials.
Seleshi Bekele (PhD), Minister of Water, Irrigation and Electricity, stated on his twitter page on Thursday March 12 that there was a meeting with project stakeholders to look the progress of the project.
“Today, we had progress review meeting with contractors and consultants at GERD site and witnessed rapid implementation. Early generation units, placement of steel and concrete work for 5 additional units going well,” he Tweeted.
The government disclosed that no earthly power will stop Ethiopia from building the dam as per the timeframe that is already tabled.
Gedu Andargachew Minister of Foreign Affairs was also quoted on Associated Press saying “Egyptian water experts and politicians know too well that our dam will not harm their interests. It will only generate electricity and won’t consume any water.”
In recent press conference he said the three countries need to resolve their differences without outside pressure.
On the Friday high level panel discussion Ethiopian negotiators stated that they believed President Donald Trump does not have proper information about the project and previous negotiations.
“We consider that the president was misinformed by Egyptians,” they said.
Experts criticized Egypt and its media outlets on baseless fabricated information about GERD, Abay and Ethiopian side on the negotiation.

EBA recommends to limit cash withdrawals

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The Ethiopian Banker’s Association (EBA) provides policy recommendations to the National Bank of Ethiopia (NBE) that includes accessing NBE bills and limit cash withdrawals from banks as a way out from the current liquidity crunch.
The financial industry has been in liquidity shortage in the past couple of months. Meanwhile the government through the central bank took several measures to tackle the problem but to no avail.
NBE cut the 27 percent NBE bills implemented since 2011 on private banks to buy 27 percentage bonds from their every fresh loans. Besides that to improve banks liquidity the central bank has been auctioned 14.5 billion birr for banks to ease their cash shortage.
According the latest move by EBA, it has provided short and long term policy recommendations to improve the matter.
The short term recommendation elaborates the liquidity access from national bank shall be liquidating banks NBE bills. “Liquidating their NBE bills, which is equivalent to the amount needed by the respective bank to solve the current liquidity problem; or availing credit with flexible tenure and lower interest rate,” the policy recommendation of the association that Capital looked stated.
It added that the members suggested that the NBE may take appropriate other monetary measures to regulate the adverse effects of any fund it would avail to the banks as recommended above and states “but restoring public confidence shall be given priority at any cost.”
In the long term policy recommendation the association that represents all banks including the two public financial enterprises stated that supporting CBE, the state owned financial giant, to improve its liquidity position is a must, because the measures that could be taken to reduce liquidity stress would affect the industry as a whole.
CBE’s deposit mobilization for the first six months of 2019/20 financial year stood at 24.6 billion birr which is 71 percent of its target. The performance in the first half of the past financial year, 2018/19, was 29.8 billion birr, which is 5.2 billion birr higher than this year first half performance.
The recommendation for the long term solution also added that the central bank to put cap for cash withdrawal from banks.
“Introduce directive that limit cash withdrawal from banks, because high cash is observed outside banks,” the recommendation reads.
“Support banks to modernize their chase management and payment system,” it added.
Currently sector actors claimed that several individuals prefer to save huge amount of money in their safes than using the formal banking system.
In different occasion it has been recommended by the sector actors that the government should impose maximum rate that individuals can have in their possession at a time.
Recently Abie Sano President of EBA and CBE, said that even though the government accrued finance that it collected in terms of tax and other means, it reserved to disburse it.
“Currently the government is reserved to release finance and due to that the financial sector is affected,” Abie explained.
He said that if the government disburses the money the financial sector would be beneficiary. He said that he believed the problem is short term.
One of the bank presidents, who preferred anonymity, told Capital that the policy recommendation is developed by the initiation of the association itself.
“Although NBE is the regulatory body responsible to supervise the sector, we also have stake to take such kind of initiative since we are also working for the country and administer public finance that we have to keep the public confidence,” the president added.
The scope of the policy recommendations includes looking the cause of the problem and solution that the government should or consider to follow.
“We expect positive response from the government,” the president expressed his hope.
The association submitted the policy recommendation for national bank this week.

Gov’t to open up multimodal, dry port to private businesses

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Liberalizing the logistics sector the Ethiopian government is to open up the multimodal and dry port sub sectors.
According to the new strategy of the government selected private movers will be allowed to engage on the business for both dry port operation and multimodal scheme.
Mekonnen Abera, Head of Ethiopian Maritime Affairs Authority (EMAA), said that selected private sector actors will be allowed to be involved in the sector. But he did not elaborate the criteria of the selection.
“At the current level we will open the two sectors on limited steps and they will be allowed to operate independently unlike the previous draft directive that proposed the operation to be run under ESLSE,” he said.
The previous directive had been put in place different criteria that will be included on the multimodal operation. For instance the oldest draft document indicated that a company should have 5,000 square meters of transit plot and a capital of 10 million birr. Mekonnen told Capital in the near future the new approach will be implemented. He said that local private actors will be part of the new opening up. However by default foreign investors will be involved since they have a right to invest up to 49 percent on local businesses.
The multimodal scheme includes almost majority import items that eroded the business of the private actors.
During the establishment of Ethiopian Shipping and Logistics Services Enterprise (ESLSE), the state owned logistics enterprise, in 2011 by the amalgamation of the former Ethiopian Shipping Lines (ESL), Ethiopian Maritime Transit Services (EMTS), Dry Port Service Enterprise (DPSE), and Comet Transport the enterprise become the sole multimodal and dry port operator in the country.
The government in its recent reform plan disclosed that it will open some of the mega public monopoly businesses for the private sector and foreign investors. The logistics sector is one of the areas that the government targets to open for local and foreign investors.
As per the government decision the involvement of foreign investors on the logistics sector is up to 49 percent.
So far CMA CGM and Bolloré Africa Logistics, both French companies, have agreed to get the maximum share on two local logistics companies.
Since the government introduced the multimodal scheme (land, sea or road transportation services) under ESLSE monopoly private actors expressed their disappointment about the exclusion of them despite they have a capacity to run the business.
The logistics sector of Ethiopia is one of the bottlenecks for the economic growth. The government has been trying its best to modernize the sector but the change is not as required.

EMBEDDED VIOLENCE

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The prevailing modern world system, which took over half a millennium to reach its current status, has always been saddled with protracted problems ever since its very inception. Among the obvious perennial conundrums, we can mention the continuous polarization amongst nation-states and its corollary–the fledging inequality within nation-states. At the global level, consequences of these operational doctrines are unfolding rather robustly. New forms of resistance that were not anticipated by the rulers of the global order are coming to the fore. For instance, the current global political chaos that emanates from the underlying fallacious dogmas of empire, such as ‘national interest’, and making ‘the world safer for democracy’ etc., are being boldly challenged by non-state actors!
Non-state actors challenging the orthodoxy of global dominant interests have become resourceful and determined in their mission to undermine the lopsided political economy of the world system. The reasons why many of these movements take violent routes is understandable, though some of their actions cannot be condoned. The increased viciousness of the formal states, steered by the now infamous ‘deep state’, is one of the major reasons propelling non-state actors to take up arms! This is clearly visible in the Middle East. A significant portion of the population in MENA (Middle East and North Africa) feels their elites have let them down. To keep on relying on these same elites for salvation is not a project worth pursuing, the populous has surmised. In the process of this protracted struggle many of these movements have developed significant capacity to inflict damage to the well-armed nation states of the region. In this regard, the various Yemeni resistance movements deserve mentioning. The older ones of the Levant: Hezbollah, Al Qaida + affiliates, Islamist Jihad, etc. are already known to many. Coming home to our continent, the destabilization of Libya has given rise to various factions, i.e., non-states actors within the country. These groups are now vying to consolidate power with a view to take over the state. Be that as it may, given the interests of the global power that be, (the very initiators of the chaos) situations might not turn out in favor of the Libyan sheeple (human mass)!
The project to destabilize Syria seems to be on the wane, thanks to concerted efforts by regional and ascending global powers. After the destruction of Libya, China and Russia just refused to go along with NATO’s dismembering ambition of Syria. As a result, there is now a glimpse of peace in that unfortunate country. As we have stated above, the bosses of the world system do not really care about the majority of the inhabitants of the planet. Empire’s major concern is to make sure it (USA, EU and Japan) controls, directly/indirectly, all the resources of the planet.
One need not go back further than the 20th century to reflect on the embedded violence of the world system. WWI, WWII, the Korean War, the Vietnam War, and the various small wars, are clear proof of the system’s violent nature. Empire’s current project, particularly that of the hegemon’s, is to undermine ascending powers by any means necessary (Russia, China, Iran, etc.) Obviously, this strategy can potentially cause immense destruction to the current human ‘civilization’. Here is an extract from ‘War is a Racket’, a lesson from an individual who was very much in the thickest of it all!
“I spent 33 years and four months in active military service and during that period I spent most of my time as a high class muscle man for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902-1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested. Looking back on it, I might have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents.
Beautiful ideals were painted for our boys who were sent out to die. The was the ‘war to end wars.’ This was the ‘war to make the world safe for democracy.’ No one told them that dollars and cents were the real reason. No one mentioned to them, as they marched away, that their going and their dying would mean huge war profits. No one told these American soldiers that they might be shot down by bullets made by their own brothers here. No one told them that the ships on which they were going to cross might be torpedoed by submarines built with United State patents. They were just told it was to be a ‘glorious adventure.’ Thus, having stuffed patriotism down their throats, it was decided to make them help pay for the war, too. So, we gave them the large salary of $30 a month!
All that they had to do for this munificent sum was to leave their dear ones behind, give up their jobs, lie in swampy trenches, eat canned willy (when they could get it) and kill and kill and kill…and be killed”
WAR is a racket. It always has been. It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives.
To summarize: Three steps must be taken to smash the war racket. 1. We must take the profit out of war. 2. We must permit the youth of the land who would bear arms to decide whether or not there should be war. 3. We must limit our military forces to home defense purposes.”
Major General Smedley D. Butler, “War is a Racket”: The Antiwar Classic, by America’s Most Decorated Soldier (1935). Good Day!