Euro Cable plc, a pioneer in wire manufacturing in Ethiopia, inaugurates a new expansion that will triple its production by introducing new product lines.
The new factory located in the southeast outskirts of Addis Ababa around Gelan Industrial Area was officially inaugurated in the presence of federal and regional government officials.
Simge Yuksel, Business Development Manager at Demes Cable, who is one of the two partners that formed Euro Cable and is based in Turkey, said that the facility has a covered area of 10,500 square meters in a compound of 20,000 square meters.
Euro Cable PLC, a joint Ethio-Turkish venture, was the first private enterprise to start manufacturing electrical cables in Ethiopia. The venture began with a starting capital of 55 million USD ten years ago and this latest major expansion will bring the estimated market value of its investments to over 1.2 billion USD, according to the Turkish partner representative.
Saad Ibrahim, General Manager of Euro Cable, told Capital that his company Glorious plc, the well know electronic and equipment supplying company in Ethiopia, has been importing Demes products from Turkey for several years before extending their relationship.
“Even though Demes’ products are high quality with a good reputation, fake products imported by unscrupulous businesspeople have affected the local market, our business and even international clients who produce and supply the product up to standards,” he said, explaining how the two partners teamed up to establish the industry in Ethiopia.
“The fake products are very cheap but very dangerous since they are electric cables. Their reduced price has affected our business and such kind of products are still imported,” Saad added.
In his speech, Saad stressed that the government has to work strongly to stop the importation of fake and dangerous electric cables. He also said that his company is working with relevant government bodies to tackle this challenge.
Teka Gebreyesus, State Minister of Trade and Industry, told Capital that this type of partnership is a good lesson for Ethiopian investors and the business community. It demonstrates a way that business can be undertaken jointly with a strong capacity. “Working together in Ethiopia is not common but if it is expanded the private sector will be more capable, intelligent and profitable,” he said.
“This partnership is also good experience for importers. The government wants the private sector to start producing products currently being imported,” he added. The factory soon will expand again so they can make additional things to export to regional markets.
“We have a plan to produce high and medium voltage cables and even satellite and fiber optics,” Saad explained.
In his opening speech the General Manager expressed his company’s desire that the Oromia region provide an additional plot at the same area for the massive expansion.
The expansion which was done without a bank loan has also increased the number of employees to 200 that was about 30 when it started operation ten years ago. Demes Cable has been in the Turkish cable sector for over 30 years.
JV cable company triples production
Fake news killing turtles
For the last three months, Tortoises have been sold for 60,000 birr to 400,000 birr at local markets. Rumors have spread, falsely claiming that their shells consist of mercury and that this could block phone and Internet networks.
What are commonly named leopard tortoises are being sold in Debre Birhan, Gonder, Addis Ababa, Awash and along the borders of Djibouti. According to the Ethiopian Wildlife Conservation Authority (EWCA) there is no tangible evidence that these turtles have the uses they are being sold for.
Daniel Pawlos, EWCA Wild Life Traffic Director responded to the problem saying “we are telling people not to be misled by cheaters who tell them to buy tortoises for profit. There are no scientific results indicating that tortoise shells have mercury used for blocking networks and we are expressing this fact to the public.’’
“There are no foreign or local buyers who want the shells of these animals. We have observed people dropping tortoises on the road after they purchase them for a huge sum of money based on false information.’’
“All living creatures in Ethiopia have the right to life and protection. We decisively warn against hunting tortoises,” he added. Daniel said the only legal way to sell leopard tortoises is by exporting them to the Asian market for medicine.
Currently an estimated 200,000 leopard tortoises are found in the low land areas of Ethiopia. The leopard tortoise species has been listed in Appendix II of CITES since 1975 in which trade must be controlled to protect it from extinction. Small Leopard Tortoises are occasionally killed and eaten by pastoralists in southern Ethiopia and their empty shells are used as cowbells. While in Somalia Leopard Tortoises are collected mainly for medicinal purposes and considered an aphrodisiac and the turtle-derived medicines are specially used to treat lung diseases such as tuberculosis, asthma and cough. Declines in some areas of East Africa have been attributed to unsustainable harvest for the pet trade. Some tortoises in East African counties including Ethiopia have also been known to be killed by frequent fires common in this region, although the species is perceived to hold stable overall. In South Sudan, habitat burning impacts may be sufficiently widespread to have impacted populations.
UK backs Ethiopia’s upcoming elections
The UK government has extended financial support worth over half a billion birr to help Ethiopia run free, fair and transparent elections next year.
“Ethiopia’s democratic reforms are inspiring people across the world that is why, we have agreed to provide 15.5 Million Euros for the upcoming Ethiopian national election as it further demonstrates the close working relationships that the UK has with Ethiopia, says Jermy Hunt, British Foreign Secretary.
The funds will build the capacity of electoral board to run the election, make electoral operations more transparent and enhance the board communications and engagement with the Ethiopian people. The United Nation’s Development Program works with development partners.
UNDP will also be working to support the National Electoral Board so that it can ensure Ethiopia holds a credible national election in 2020.
“The British contribution is substantial and timely that allows UNDP to deliver quality assistance to the election board,” says Louise Chamberlain, UNDP resident representative to Ethiopia.
The project will also try and prevent electoral violence through enhanced monitoring and early warnings to improve the effectiveness of the electoral dispute mechanism.
“Elections are fundamental and the most visible part of democracy, I am proud that Britain supports Ethiopia’s election, Hunt adds.
Bertukan Mideksa, Chairwoman of the Electoral Board said we are assuming the election will be conducted on time. The Board is talking with opposition political parties to amend laws and agree on electoral reforms.
The ruling party vows to conduct a democratic election, ‘My dream and ambition is working for democratic elections to be held in the country,’ PM Abiy Ahmed said during the signing ceremony of political parties.
“If successful and peaceful, the elections in May 2020 will be a major step towards building a democratic culture in Ethiopia and will lay a platform for a continuation and deepening of the inclusive reform Ethiopia has been making,” said Secretary Hunt.
UN warns of looming drought-related humanitarian crisis in Somalia
A senior United Nations official has cautioned that the harsh drought conditions currently afflicting much of Somalia are likely to trigger a major humanitarian crisis if urgent action is not taken to contain the situation.
The 2019 Humanitarian Response Plan, currently only is funded to 19 percent for the year, which is very worrying with the current extent of the humanitarian crisis that is evolving,” said Conway, who is also the United Nations Resident and Humanitarian Coordinator.
During a visit, the DSRSG said the situation required strong advocacy with donor and financing partners to bring the humanitarian response up to scale, “so we don’t find ourselves in Somalia in a situation where people are moving increasingly into crisis and potentially over the edge into more disastrous conditions.”
According to the United Nations Office for the Coordination of Humanitarian Affairs (OCHA), drought conditions in the 2018/19 rainy season have led to an increase in the number of people designated as “food insecure” in Somalia since October of last year. OCHA warned that a deterioration into crisis conditions is expected in many pastoral and agro-pastoral areas during the month of May, due to funding shortfalls that may hamper a full implementation of the planned food assistance.
Conway was accompanied by Monika Agnete Pollan Thowsen, senior advisor on humanitarian affairs at the Norwegian Ministry of Foreign Affairs, Svein Olav Svoldal, first secretary at the Royal Norwegian Embassy in Nairobi, and Matija Kovac, the head of OCHA’s Humanitarian Financing Unit.
The day-long trip included a visit to temporary shelters in Baidoa to assess the living conditions of internally displaced persons (IDPs) and weigh up appropriate measures to alleviate their suffering.
The visiting delegation also held discussions on the unfolding humanitarian crisis with the President of South West State, Abdiaziz Hassan Mohamed “Laftagareen,” and representatives of non-governmental organizations (NGOs) who work with IDPs.
“Today we received a delegation that came to assess the humanitarian situation in South West, particularly in Baidoa. We discussed the pressing challenges – mainly the delayed rains, how to scale up humanitarian response, and how to mobilize resources to tackle the drought affecting our people,” President Laftagareen said.
Last year, a drought spanning four consecutive below average rainy seasons left about 6.2 million people in need of emergency aid such as food, water and shelter. That prompted the UN to launch an aid appeal of $1.6 billion to help address the crisis.
To prevent the situation from worsening, the Norwegian government is already supporting a number of projects in Baidoa and planning to boost humanitarian support in South West State in conjunction with the UN.
“We are on a monitoring mission to Baidoa together with the UN and the Somalia Humanitarian Fund. We have a partnership with the Norwegian Refugee Council and we support Save The Children. We were able to interact with IDP communities and learned the current challenges faced by the growing IDP population,” observed Thowsen.
Noorta Abdi Osman was displaced by the drought from the settlement of Hawaal Barbaar, which is situated 30 kilometres outside of Baidoa. She lamented the shortage of water and the mounting humanitarian needs at the Hawlwadaag camp where she is now living.
“Our challenges have doubled since coming here – shortage of water, no food to eat, and no end in sight to the drought. We seek assistance from the international community and the South West administration,” Ms. Osman said.
Fadumo Ali Mohamed, a 45-year-old mother who was also displaced by the prolonged drought in the Bakool region of the state, thanked the donors for constructing a borehole in the Hanaano camp because the project has helped alleviate their plight.
The delegation also visited a school project at the Hawlwadaag camp to witness the efforts being made by local NGOs to educate children uprooted by the ongoing drought.
