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PM Hailemariam resigns amidst turmoil

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PM Hailemariam Desalegn who served as Prime Minister for over five years unexpectedly announced his resignation to be ‘part of the solution’ for the current crisis in the country.
Over the last few years political instability has occurred in two major regions. The government declared a state of emergency in October 2016 that lasted ten months. The situation appeared to be calm for a while. However protests and violence continued to rock the country.
The major problem since the beginning of the Ethiopian New Year has been the conflict between the Ethiopia Somali Special Forces along the border area of the Oromia region, the biggest ethnic group in the country followed by revolts in some parts of Oromia. There have also been smaller protests in other parts of the country.
The outgoing PM submitted his resignation to the Southern Ethiopia Peoples’ Democratic Movement (SEPDM), a party that included different ethnic groups in the southern region, on Wednesday February 15. In his announcement on Thursday afternoon Hailemariam said that his resignation has been accepted by the executive committees of his party and the coalition front EPRDF.
“The main reason I have submitted my resignation is because I hold the firm belief that it was necessary for me to tender it as part of a solution aimed at ensuring lasting peace and guaranteeing democracy in our country going forward,” he said during his seven minute statement. He added that he was resigning because the many questions and grievances that have been raised by the public require and demand answers.

Hailemariam Desalegn, PM
Hailemariam Desalegn, PM

“Going forward, once the peaceful transition of power receives a final endorsement by the House of Peoples Representatives, I will provide a further statement on that occasion,” he said.
Recently the four party leaders of EPRDF talked about reforms that included releasing political prisoners. At the same time the protests occurred in the Oromia region that forced the government to release more political prisoners, including Merera Gudina (PhD) and some other opposition political figures a few weeks ago.
“On my part, in an effort to fulfill my responsibilities as a party to these reforms, I have officially tendered, of my own volition, my resignation from the leadership of both the EPRDF and the government,” the outgoing PM said.
Hailemariam’s resignation occurs immediately after the protests and instability in Oromia followed by the release of another group of Oromo opposition members and journalists and other opposition figures.
The resignation of the PM is expected to be ratified by the parliament. He said he would continue in his role until he is replaced.
“The situation of our country currently is a cause for concern but in order to alleviate these concerns, I call on the public-at-large to maintain the togetherness of our society as has been practiced across generations and to continue to play their part in the development of our country,” Hailemariam said to the public during his speech.
A day after the PM announced his resignation, the Council of Ministers held a meeting that took them over six hours to discuss the implementation of the state of emergency. Journalists filled the PM’s office to attend a press briefing scheduled for that afternoon but the meeting went on into the evening hours and the press briefing was canceled. That night several reports circulated online and on local media indicating that some prominent opposition figures from Amhara were freed from prison.

Six month state of emergency returns

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Siraj rules out transitional government

Minister of Defence Siraj Fegessa said during a press conference held at Defence Force Club on Saturday February 17, that there would be no transitional government or military takeover because the current government was democratically elected. Some analysts entertained this idea to alleviate concerns after several significant events including Thursday’s surprise resignation of Prime Minister Hailemariam Desalegn led to the announcement on state media Friday of a new state of emergency.
Siraj Fegessa said protests and group gatherings are banned and that security fources would be instructed to take action against people disturbing the peace. A special court has been set up to prosecute people who incite violence as well.
The parliment is expected to approve the state of emergency within 15 days.
Some political commentators have recommended a national reconciliation committee, the formation of a commission, fresh elections and improving human rights in order to foster a more open political climate in the country.
In a recent statement the ruling coalition EPRDF stated that it would apply moves to improve the political situation. Political prisoners were freed including many last week which led to celebrations among protests.
Siraj was expected to provide details about the state of emergency in the press conference, however, he failed to provide specifics only stating it would be six months with an option to extend another four months, a tribunal would be set up and that protests and group gatherings were banned. Internet shutdowns were also discussed as an option if the situation worsened. The previous state of emergency lasted for ten months, ending in August 2017.
A statement that circulated via state media said more details would come via relevant security heads.
Siraj said that violent gestures (protest gestures) were not allowed, public violence, civil demonstrations and group gatherings were banned.
Ethiopia’s Council of Ministers on Friday cited deaths, ethnic attacks and mass displacement as reasons for the latest state of emergency. The announcement followed protests in towns across the Oromia region on Monday and Tuesday that called for reforms and tension along the Oromia Somali border.
Similar protests have taken place across Ethiopia since 2015, leading the government to declare a state of emergency in October 2016 after hundreds of people if not thousands were reportedly killed.

CBE half year profit way below target

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The state owned Commercial Bank of Ethiopia targeted to earn 8.8 billion birr profit by the middle of this fiscal year. However, they are far behind that goal because hard currency earnings have been lagging. This is largely due to the recent devaluation of the birr and poor export earnings.
According to data that Capital obtained, 3.67 billion birr was earned during this time and hard currency exchange was 28 percent of that amount.
Sources at the bank told Capital that the recent birr devaluation led to a one hundred million birr loss.
“The LC which was open before October for exporters cost us four birr per dollar because they bought the dollar from us at 23 birr but the devaluation caused the dollar to be sold at 27 birr. The other reason is our bank has not been earning a large amount of money from exports, previously over 60 percent of exports passed through our bank but now it is less than 30 percent,’’ the source said.
Capital tried to reach CBE’s communication officer but to no avail.
“Savings and collections from loans are going well in a majority of our branches which is positive news for the bank and as you know the some of the profit goes to the government for development so if we don’t make a lot of profit it affects development.’’
The source also added that the National Bank of Ethiopia rejected CBE’s plan to allow its customers to use 40 percent of their export earnings to import unrelated items from the export work they do in order to earn dollars.
NBE redirected CBE to follow the old plan that required customers to fully use their export earnings on importing items related to their work in order to receive hard currency.
With the current procedures imported items that are paid for with hard currency and pass through CBE get a commission of 1.5 percent and the National Bank of Ethiopia also obtains the same percentage.
In the last fiscal year CBE earned close to 32 billion birr in revenue. Of which the gross profit before tax is 14.6 billion birr. The bank has collected USD 4.5 billion via remittances export trade and other businesses.

Digital in 2018: Report shows fast growing internet use in Africa

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According to the Digital in 2018 Report released recently, there are 16.4 million Internet users in the country with Internet penetration at 15 percent. Out of those 3.6 million are active social media users. The report states that well over half of the world’s population is now online, with the latest data showing that nearly a quarter of a billion new users came online for the first time in 2017.
Africa has seen the fastest growth rate with the number of Internet users across the continent increasing by more than 20 percent year on year.
Data on Ethiopia shows that annual growth for Internet users is at 37 percent and the number of active social media users is growing by 20 percent. Findings show that majority of Ethiopians access the Internet from a mobile device. Top three most searched teams on Google are ‘Facebook’, ‘News’ and ‘Ethiopian’.
According to the report, much of this year’s growth in Internet users has been driven by more affordable smart phones and mobile data plans. More than 200 million people got their first mobile device in 2017, and two thirds of the world’s 7.6 billion people now have a mobile phone.
Data also shows that more than half of the handsets in use today are smart devices, so it is increasingly easy for people to enjoy a rich Internet experience. Social media use continues to grow rapidly and the number of people using the platform in each country has increased by almost one million users everyday during the past 12 months.
More than 3 billion people around the world now use social media with 9 out of 10 of those users accessing their chosen platform via mobile devices.