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PM Abiy heads to Kenya

Prime Minister Abiy Ahmed (PhD) will head to Kenya for his third overseas visit today. He also took part in the discussion with Bale Robe, Oromia Regional State, residents on Saturday. The Prime Minister is expected to held talks with President Uhuru Kenyatta on bilateral issues today, Sunday May 6.
In his two visits to Djibouti and Sudan the PM also managed to clinch major economical and diplomatic achievements.
On his first foreign visit PM Abiy arrived in Djibouti, the major economic ally in the region, on Saturday April 28. On his two days visit in Djibouti he agreed to develop Djibouti port.
In August Capital reported that a delegation comprised from Metals Industry Development Institute of Ethiopia (MIDI) paid a visit to Djibouti to asses for a port facility dedicated to Ethiopia.
The delegation visited a site at Obock town, located on the northern shore of the Gulf of Tadjoura.
At the time the then Minister of Transport told Capital that the studies that are being undertaken will cover the establishment of ports in partnership with the government of Djibouti.
It is also reported that the two countries may swap some of their public enterprises including the likes of Ethiopian Airlines and Ethio Telecom among others. A joint commission is expected to undertake the details of the agreement.
Djibouti is aggressively expanding its logistics infrastructure to absorb the growing demand of Ethiopia and on the target to be most preferable logistics and cross continental cargo hub in the continent.
Recently, the port centre terminated its management contract with one of the biggest port operator DP World. At the same time Ethiopia bought a 19 percent stake on the port at Berbera, Somaliland, the self-declared nation. It is recalled that last year DP World has taken the major stake at Berbera Port with a 30 year management contract and development of port and related facilities.
Currently Ethiopia and Djibouti have various social and economic co-operations and stated as an example for regional integrations in the continent. They are linked with optical fiber cable, electricity, water and modern electrical railway and have agreed with several upcoming projects including the construction of natural gas pipelines and facilitate joint customs facility in addition to open school for Ethiopian community in Djibouti city.
In another visit from Wednesday May 2 to 3, the PM met with Omar Hassan al-Bashir, President of the Republic of Sudan.
During their meetings the two countries agreed to jointly develop port facilities along the red sea coast in Sudan as an alternative logistics outlet for Ethiopia.
The two countries formed joint commission for year that is working to integrate the two nations on economic areas and border trade.
The feasibility study for the trans-boundary special economic zone was also proposed for financial support for the feasibility study for the African Development Bank (AfDB). The joint project office for trans-boundary special economic zone is formed in Ethiopia.
The economic zone will include massive infrastructure such as port, railway and corridor developments. One stop border, bank, customs and free trade are some of the issues that will be included on the joint plan.
The two countries also agreed to connect via railway and turning the town of Assosa, capital of Benshangul Gumuz region, into a commercial centre.
Abiy is expected to manage similar deal with his counterpart in Kenya.

East Africa average per capita income reaches $740

Eastern African countries average per capita income reached 740 USD in 2016, double the figure ten years earlier, according to a report by the United Nations Economic Commission for Africa (UNECA).
According to new ECA report entitled Macroeconomic and Social Developments in Eastern Africa 2018, despite the marked improvements, growth in the region is still fragile. In particular, the development of the manufacturing sector in Eastern Africa has been lagging behind, limiting job creation and holding back technological progress.
The report states that the economic performance of Eastern Africa has been impressive in recent years, with an average annual growth rate of 6.5 percent between 2012 and 2016 – much higher than the African average and even outpacing East Asia. The people of the region live longer and healthier, receive better education, and enjoy an improved quality of life compared with just a generation ago. The report further states that these positive results are largely attributable to increased state capacity, as governments in the region have rebuilt their institutions after the ‘lost decades’ of the 1980s and 1990s. Where state action has been effective, improvements have been largest.
Despite the positive developments, there are a number of challenges looming on the horizon. Amid the severe drought conditions which afflicted parts of the region, Eastern Africa recorded a marked moderation in its economic growth in 2016, down to 5.5 per cent from 7.1 per cent in 2015. According to UNECA estimates, regional economic growth was little changed in 2017 (at 5.5 per cent), with a modest acceleration to 5.9 per cent being forecast for 2018.
The report notes that other than in Ethiopia, which has implemented an ambitious programme of export-oriented industrial parks, government policies have not thus far managed to promote robust growth in the manufacturing sector.
Another important theme highlighted in the report is the need to improve the business environment in Eastern Africa. Private sector development has been relatively lackluster and the bulk of productive investments are still accounted for the public sector.  Growth would be stronger and more resilient if policies were implemented to bolster private sector activity, the report argues.
“Albeit from a very low base, this is the result of sustaining rates of economic growth considerably higher than African or global averages over the period” says Andrew Mold, Acting Director the Office for Eastern Africa of ECA.
“We should not fool ourselves – the region still needs to confront some serious developmental challenges if it is to attain the Sustainable Development Goals in 2030  – but in general the people of Eastern Africa now live longer and healthier, receive better education, and enjoy an improved quality of life compared with just a generation ago”, stressed Mold.
The Eastern Africa region comprises: Burundi, Comoros, D.R Congo, Djibouti, Ethiopia, Eritrea, Kenya, Madagascar, Rwanda, Seychelles, Somalia, South Sudan, Tanzania and Uganda.

Anti-corruption commission complains about new office facility

The Federal Ethics and Anti Corruption Commission (FEACC) expressed its distress with lack of adequate office facility after it moved out of their old office located around the area commonly known as Lagar.
The commission that moved to a building located behind Hilton Hotel on Tito Street, claimed that it is unable to properly manage its operation and file the documents of the registered asset of public officials.
On the 14 the Executives National Anticorruption Coalition meeting held at the Sheraton Addis, participants and officials of the commission frequently expressed their concern about the challenge that the commission faces.
One of the participants that represent one organization stated that it has to be clear whether the government wanted this organization to continue or not.
Since November last year the commission moved to its new office after the newly established Government Housing Corporation took over its building that uses to house the commission since its establishment.
“They are the owner of the building, but the commission has to have a proper facility to operate its activity normally,” one of the participants said.
Ayelign Mulualem, Commissioner of FEACC, who comes to the position in November, told Capital that his organization expressed its concern to the relevant government offices like the Office of the Prime Minister and Ministry of Finance and Economic Cooperation (MoFEC). “The current PM is new for the post but we have expressed our concern for MoFEC strongly,” he added.
“We have several documents related with asset disclosure and registration that do not get proper storage area,” he said.
Ayelign who was chief administrator of the North Gondar Zone and head of Health Bureau of the Amhara Region, said that one of the missions of the commission is creating awareness to fight corruption, however there is no proper venue to give trainings for different segment of the public.
“Currently our commission has several responsibilities at the continental and international stages but we could not host our guests from abroad at our office,” the Commissioner said. “If we hosted them in this facility it is a bad image for the country and it may give an image that the government do not give proper attention for fighting corruption,” he says.
The problem has forced the commission to host guests at hotels.
Officers at the commission said that part of the equipment of FEACC still remains in the previous building. The Commissioner argued that the current building of FEACC was not constructed for office purpose. He said that it was built for shop and residential facilities, which makes it difficult for them.

The art sector heavily suffers by the recent unrest

By Muluken Yewondwossen
The Ethiopian art industry particularly the paintings and sculptures sector has been affected by recent political instability and public unrest.
On a panel discussion titled ‘Art and its Economic Benefit for Artists, Other Actors and the Country’ organized by Crown Publishing PLC, publisher of Capital newspaper, representatives of the art industry stated that the art industry and galleries has been affected with the recent instability in the country.
On the discussions that attracts the media, artists and promoters, Seyoum Ayalew, the outgoing president of the Ethiopian Painters and Sculptors Association said that the instability affected the tourism flow in the country.
“Our major clients are tourists and foreigners and the art market slowed in the past couple of years,” he said.
Experts said that several art galleries including Asni Gallery, which is one of the prominent galleries for tourists in the town closed its doors.
“They have tried to survive by subsidizing it, but they couldn’t continue anymore,” Seyoum said.
Several other studios including the famous Five Arts Studio established by artists was also closed due to financial reasons, according to the president of the association.
Besides that he argued that the sector does not have clear and knowledge based support and acknowledgement from the government.
“We are struggling to survive, while at the same time looking different kind of support to make the art industry one of the economic and social welfare contributor for the country,” Seyoum said.
Besides the workshop Seyoum told Capital that the art industry is one of the sources of tourist attraction for the country. “In 2014 Addis Ababa has been placed as one of the best tourist destination city in the world by New York Times. In its article the New York Times stated that Addis Ababa is a centre for hosting art exhibition every week and galleries in the town are performing very well. This is a good indication how the art industry contributed for the tourism and economy,” he added.
The New York Times ‘52 Places to Go in 2014’ stated “thanks to the city’s diverse art institutions and galleries, including the artist-in-residence village Zoma Contemporary Art Center and the Asni Gallery (really more of an art collective than a gallery), there is an art opening at least once a week. Even the local Sheraton puts on “Art of Ethiopia,” an annual show of new talent.”
In the panel discussion held on May 1, 2018, at Yucca House in the sidelines of the Tesfahun Kibru’s Art Exhibition, the art industry actors insisted that media houses and journalists should give proper attention for the sector.
It was also mentioned that journalists have to have proper knowledge to provide ample coverage for the art industry in general.
It has been claimed that even though the music and now the cinema sub sectors contribute for the economy it is stated that they are also very limited.
It was stated that in the emperor era the sector has been supported by the financial sector and secured loan. “Like the trend of other countries paints are considered as collateral like other assets,” Seyoum, one of the panelists on the discussion said.
He argued that exchange market like Ethiopian Commodity Exchange has to be formed to boost the sector and make more beneficiaries for the artists and related actors.