Wednesday, September 30, 2026
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Tragic death hits the nation

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Semegnew Bekele (Eng.) (53) head of the Grand Ethiopia Renaissance Dam (GERD) will be laid to rest today Sunday July 29 at the Holy Trinity Church.
The engineer in charge of the country’s flagship electricity project has been found dead at Meskel square on Thursday morning.
The body of Simegnew Bekele was found in his car parked at Meskel Square. Police have opened investigations into the possible cause of death and confirmed that he was dead by a gun shot.
The GERD is set to become Africa’s largest hydro dam with a capacity of 6,450 MW when completed.
Ethiopians all over the country have been expressing shock and sadness at the incident.
Ethiopia despite the breeze of a new political order which is expanding the political space is also facing security headaches in parts of the country. It has led the United States to openly call for the need to maintain the peace in these delicate times.eng-smegn-death
A series of arsons have been recorded in a number of prisons across the country whiles there is a bulging humanitarian crisis in the face of displacements from communal conflicts in some areas.
The most high-profile death till date occurred in May 2018 when the authorities set of to investigate the circumstances under which the country manager of Dangote cement was killed by unknown assailants.
At a time when the country was still under a state of emergency, the Command Post in charge of security said Deep Kamara the manager was killed along with two other individuals in the attack.
The Command Post at the time said it was hunting for the attackers and called on the local community to cooperate with security forces to help apprehend the criminals.
About GERD
Ethiopia stated earlier this year that the project was going well and expected to start partial test power generation soon. It is a major part of a massive energy infrastructure project the Ethiopian government is undertaking which aims to see the country’s power generation capacity increase from the current 4,280 MW to 17,300 MW by 2020.
The Ethiopian government has embarked on massive energy projects across the country with a view to succeeding in its plans to make the East African country a light industry hub in Africa and a middle-income economy by 2025.
GERD, whose construction started in April 2011, is being built at a cost of 4.7 billion U.S. dollars, fully financed from domestic resources and is expected to have a reservoir with a total of 74 billion cubic meters of water upon completion.
The hydro dam, which is being built on Blue Nile river 40 km from Sudanese border, has been billed as a landmark project signaling Ethiopia’s renaissance.
It has however been the center of a dragging diplomatic standoff between Ethiopia and Sudan on one hand and Egypt on the other hand. Egypt fears the USD 4.7 billion dam, that the Horn of Africa nation is building on the Nile, will reduce a water supply vital for its 84 million people, who mostly live in the Nile valley and delta.

MetEC outsources electromechanical work of GERD to Chinese firm

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The Metals and Engineering Corporation (MetEC), who is undertaking the electromechanical installation work of the Grand Ethiopian Renaissance Dam (GERD), is going to outsource it to a Chinese giant company, on the first unites of the project, Capital has learnt.  The outsourcing puts hope to accomplishing the project early.
The project that commenced seven years ago and at the initial plan was expected to be accomplished by 2017 has been delayed; despite several design changes and increasing the production capacity to 6,450 MW was undertaken.
The project is run by the Italian construction firm of Salini Impregilo and MetEC as the two main contractors and a Franco-Italian joint venture of Coyne et Bellier and ELC Electroconsult retained the consultancy service.
The civil work managed by Salini is in good progress. The electromechanical installation was expected to be done by MetEC itself, while equipment supplied by prominent global manufacturers. Now it transferred it partly due to the poor progress.
On his press conference held on Thursday July 26 Seleshi Bekele (PhD), Minister of Water, Irrigation and Electricity (MoWIE), about the sudden death of the prominent project manager Semegnew Bekele (Eng.), admitted that the delay occurred on the electromechanical part of the project, which is handled by MetEC.
He said “the civil work is in good hands.” “Stakeholders including MoWIE, contractors, consultants, Ethiopian Electric Power, project leaders and board are working strongly to accelerate the project,” he added. The project manager of GERD Semegnew was here to attend meetings as of Monday, according to Seleshi.
According to the information that Capital obtained, there was a bid to outsource the installation work, the project with the local currency payment. Sources said that the company has already commenced its work at the site a couple of weeks ago.
The company may carry out the penstock, Bottom outlet, steel structure and other relevant projects on the electromechanical part, which may allow the project to generate the first power from the two turbines.
According to sources, who are close to the case, MetEC did not plan to outsource the installation of electromechanical work, while the pressure on it forced to award for other companies in an international bid.
Even though MetEC did not assign another company for installation until recently, it awarded several supplies and design works for prominent companies on the electromechanical part of the project.
For instance it has subcontracted turbine construction to France’s Alstom and Germany’s Voith and other Chinese company were assigned for the supply and design of high voltage equipment.
Most of the design and supply of the electromechanical work at GERD has been outsourced for international firms.
As of the latest information the first two units of GERD may start production by 2020 according to the rescheduled plan. Experts on the sector stated that the involvement of well-known companies would allow the project at least to start production within few period.
The Minister has also stated that there were several meeting about the project with several stakeholders.
GERD that is reported accomplished more than 60 percent is expected to consume over USD 4 billion.

Technology should get proper attention to achieve GTPII

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On the evaluation of the second Growth and Transformation Plan (GTP II) top government officials insisted the technology sector should get proper attention for the expected economic growth. The officials expressed their frustration on the expected achievement of the GTP. They have also stressed about reality of growth figures stated by the government.
Those who claimed that the country has to give attention for technology development claimed that the IT development has to be managed properly. “The country has to work on the production of technological products,” a participant who attended the event stated.
A representative from Ministry of Science and Technology said that the country imports USD 2.73 billion of industrial machinery and computers, USD 1.4 billion of vehicle and related equipments and electrical machinery import worth USD 1.3 billion that indicates that Ethiopia have to do strongly on value addition and technological productions. “Otherwise it would be difficult to fill the trade balance,” he said.
It has been presented by a representative of National Planning Commission that the GDP share in the 2016/17 budget year that the agriculture, service and industry sector has 36.3, 39.3 and 25.6 percents respectively.
25.6 percent of industry sector share of the GDP has also included construction and mining sector, which indicated that the manufacturing sector is minimal.
It has been reported that the manufacturing industry share is 6.4 percent that may include the mining sector, while the construction sector is 18.2 percent at the 2016/17 year.
“It is misleading that the industry sector is going to take over the economy since the manufacturing industry is not showing a sign of growing,” a participant said.
The leather and textile sector did not succeed as expected, according to the participants. They even claimed that it failed.
According to the document presented on the discussion, the actual achievement of the manufacturing industry is 27 percent in terms of export earnings in the 2016/17 budget year.
The plan was to earn over USD 1.3 billion, while the revenue earned in the stated period was USD 360 million, which was USD 377 million in the 2014/15 budget year. Potential manufacturing sub sectors textile and leather sector registered growth of 33 and 41.8 percents respectively.
According to the initial plan at the end of the GTP period in 2020 the export earnings have to reach USD 3.55 billion, which is almost tenfold of the revenue in 2016/17.
A participant says it is impossible to narrow the trade deficit by exporting primary goods. “We need to work on import substitution at least on some basic commodities like wheat, sugar and edible oil,” they added.
Participants also stressed their concern on the credibility of the figures given by the government. Some of the participants said that the GTP II would not be attainable as GTP I, which the government claimed that it achieved the first five year plan.
Participants recommended that revising the institutional capacity of government organs that are working for the implementation of the GTP. They reminded the projects that was commenced in the first GTP but never finalized until now.
One of the participants stated that he could not believe that banks follow the policy of the government in terms of loan provision. He reminded the loan provision that gave for rain feeding agricultural projects at Gambella region, while almost all of them failed.
“It has to be seriously revised, the monitory policy management in relation with the macro economy policy of the country,” he added.
Yinager Dessie (PhD), Governor of National Bank of Ethiopia, told Capital that study is under way to see challenges on the policy management.

Huge increase in farm, plant related exporters

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The Ministry of Trade is reporting that the number of people exporting flowers, livestock and agricultural products increased dramatically last year; from 546 to 9,396.
Importers also increase as well despite the difficulties they face from the lack of hard currency. There were 39,861 people importing raw material, clothing, electronics, cosmetics and drugs into the country, an increase from the 13,699 importers last year.
In both the import and export markets individual and private limited companies dominated the business.
More than 94 percent of import and export trading businesses are owned by men although there is a slight increase of female importers.
Many exporters obtain their products from rural areas, but their offices are located in Addis Ababa so they can have easy access to customs, trade offices, and transportation.
The export trade mainly relies on agricultural products like livestock. In addition to Ethiopians people from China, Turkey, the US, Denmark, Kenya, South Africa, Israel, Sweden, Norway, and Australia work in the export/import business.
Ethiopia’s exported goods and services represent 8.1% of the total Ethiopian economic output or Gross Domestic Product. Asian Countries took in 42.7% of Ethiopian exports while 29.1% were sold to European nations. Ethiopia shipped another 16.8% worth of goods to fellow African nations, with 8.5% of Ethiopia’s shipments going to customers in North America.
Coffee export accounts for approximately close to one third of the foreign exchange for the country. Apart from coffee, livestock is another major export sector for Ethiopia. In terms of world livestock production, Ethiopia holds the tenth position.
Floriculture is also expected to rise in the near future due to massive investment in the sector. Other main items of export are gold, leather products, khat and oil seeds.
Ethiopia’s main imports are: foodstuffs, textile, machinery and fuel. Ethiopia’s main trading partners are: China (18 percent of total imports), Saudi Arabia (13 percent), United States (9 percent), Russia and India.
Ethiopia’s trade imports include food, animals, machines, transport equipment, fuel, cereals, vehicles and textiles.
In the first seven months of the budget year the government projected export earnings of USD 2.48 billion but the actual achievement stood at USD 1.4 billion. A year ago that figure was USD 1.5 billion.
Ethiopia’s debt to GDP ratio stood at 56 percent last year.