ebr113 – Ethiopian Business Review

According to reports, grains, of which wheat is a significant component, are the most imported agricultural product in Africa. Meanwhile, due to excellent agro-climatic conditions, nations in East Africa including Ethiopia, Kenya, and Zambia have the potential to produce wheat locally.

The majority of African nations imported their wheat from Russia and Ukraine. For instance, the majority of the wheat imported by Egypt, the top buyer of wheat in both Africa and the globe, comes from Russia (60 Pct) and Ukraine (22 Pct).

Since the start of the war between the Government of Ethiopia (GoE) and the Tigray People’s Liberation Front (TPLF) in November 2020, the relationship between the USA and Ethiopia has strained. Ever since, Washington has been throwing every punch at its disposal at Abiy Ahmed’s administration.

Following the tensions, public figures and government officials have repeatedly downplayed the importance of maintaining good ties with Washington. Public protests demeaning the US and its actions quickly became common, organized by city and state administrations. It was an exercise in futility considering the irreplaceable role the US plays as Ethiopia’s single largest humanitarian donor and development partner.

In the 120 years of diplomatic relations between Washington and Addis Ababa, it has not been just love that solely dominated the relation between the two. The Ethio-Somali War and the 17 years of the Dergue Regime set records for all time low in their diplomatic history.

With the demise of the Dergue regime in Ethiopia in 1991, the US had become a key development partner of Ethiopia providing billions of dollars each year in the form of humanitarian and development assistance. Ethiopia was also a key ally of the US in the fight against terrorism in the Horn of Africa. However, following the outbreak of a war between the new Government of Ethiopia (GoE) and the Tigray People’s Liberation Front (TPLF) in November 2020, relations between the two got strained after more than 27 years of heyday. Words of war at State Department press conferences, loggerheads over the repetitive agenda at the UN Security Council, a signed executive order for sanctions, withdrawals of promised loans and development assistances, and the banning of Ethiopia from the Africa Growth Opportunity Act (AGOA)— all show how the their relations has gone through tough twists and turns in the last two years.

However, as the central government concluded a peace deal with the TPLF fighters last month in Pretoria, the Ethiopian government has found favorable response in its quest for the restoration of the friendship with the US. The just concluded US-Africa Leaders Summit was an opportune moment to catch. The visit of Prime Minister Abiy Ahmed to Washington to attend the Summit on December 13–15, 2022, was in that case a fruitful mission in easing of tensions between the two longtime friends. It was very instrumental in soliciting profound support for Ethiopia’s dollar-starved economy. In this article, EBR’s Addisu Deresse analyzes their relationship and the element of an ever rising China.

The most common type of armed conflict worldwide at the moment is intra-state warfare – the kind that has been rocking Ethiopia for years. The violent clashes are a terror for innocent civilians, a threat to public infrastructure and private business, and a disaster for the economy. The stench of conflict lingers long after the final bullets are fired, repelling the possibility of rebuilding through investment. Still, it is possible to encourage capital to flow into war-torn places with the right mix of government support, the restitution of the rule of law, as well as collaboration with civil societies and local organizations. In Ethiopia, too often, instability is accompanied by finger-pointing at the private sector, accusing it of collaborating with perpetrators or insufficient support for the administration. In times of conflict, private businesses are expected to raise funds for pro-government forces and not much else. It is high time to recognize the potential the private sector has in building and maintaining peace. EBR’s Lidya Tesfaye showcases an initiative that is attempting to do just that.

Kebour Ghenna served as President of the Addis Ababa Chamber of Commerce for four years beginning 1997; and as President of the Ethiopian Chamber of Commerce. He also founded and still serves as the Executive Director of Initiative Africa (IA), a non-governmental organization known in recent years for organizing the Addis International Film Festival, Ethiopia’s annual week-long event showcasing documentary films from around the world.

Kebour is also the Executive Director of the Pan-African Chamber of Commerce and Industry. He ran as a candidate for a prominent political party during the sixth national elections last year but withdrew from active membership soon after. Kebour is never hesitant to participate and partake in issues that he thinks matter and have the potential to bring about a change in Ethiopia. He has had a front-row seat to the developments and challenges of the private sector for over two decades and regularly reflects on the sector and overall development endeavors in the country on social and mainstream media platforms.

Now, as Ethiopia is eagerly searching for peace, he has once again taken a stance through Initiative Africa. He believes that peace is not an issue the government can tackle alone, and calls upon the business community to take part. Kebour speaks to EBR’s Lydia Tesfaye on his latest initiative, and the role private sector can play in securing a lasting peace.

Ethiopia’s economic growth over the last two-plus decades has been lauded as exemplary by many, including the World Bank and IMF. Nonetheless, development in terms of food self-sufficiency, unemployment reduction, and self-sustaining industrial growth have remained distant goals. The reality of the economy’s most important sector – agriculture – highlights the lack of meaning in encouraging annual economic reports or praise for unprecedented economic growth. Although there has been improvement, agricultural output remains low and the country still imports a large portion of the grains it consumes. Skyrocketing inflation and growing import bills have pushed the administration to double down on initiatives aimed at better productivity. It is the right call, but it will be difficult to achieve the goals without addressing the core issues plaguing farmers – lack of access to finance, the unavailability of mechanization, surging prices for inputs, and an ever-decreasing average landholding size. EBR’s Bamlak Fekadu explores the realities facing the Ethiopian agricultural sector and what the future holds for smallholder farmers.

As PM Promises Chicken for Every Meal

Ethiopia boasts the largest livestock population in Africa, and its cattle, goats, sheep, and camels are integral parts of the agricultural sector, national GDP, and export earnings. Although agriculture accounts for more than a quarter of GDP and an even higher proportion of income from exports, livestock’s share remains low as productivity and commercialization lag behind. This is despite decades of intervention by the government and international donor agencies to improve the sub-sector. As a new round of efforts led by the Prime Minister takes off, EBR’s Bamlak Fekadu takes a look at the challenges facing the livestock business.

Cleft lip and/or palate (CLP) is the second most common congenital craniofacial defect worldwide, occurring in one in every 600 newborns. The rates are among the highest among countries with low and intermediate levels of income. However, many cleft repairs in these nations are still well behind schedule. Therefore, the psychosocial impacts of CLP are particularly likely to affect children with the condition. Due to social stigma, these children suffer additional obstacles to education, employment, and marriage. Children with CLP are particularly disadvantaged since CLP has negative impacts on social interaction and early learning. As a result, pursuing higher education and finding work as an adult becomes difficult.EBR’s Eden Teshome looks at how CLP affects children in Ethiopia.

Ethiopia has long been home to musical artists with immeasurable social impact, from the traditional azmari who had the unique permission to critique members of the nobility with carefully crafted lyrics in times past to modern-day musicians who have fought against government censorship and oppression to keep the show going. Unfortunately, the artists have reaped less than what they deserve from their hard work due to the laxness around copyright laws and a lack of a proper system for distributing royalty payments. EBR’s Tirualem Asmare explores how the launch of a new music streaming platform has the potential for meaningful change.

One of the occurrences of the final decade of the 20th Century that has profoundly impacted the Ethiopian economy and politics is arguably Eritrea’s independence from the country in 1993. It made Ethiopia a landlocked country, forcing it to depend on the ports of its neighbors to import and export goods, to say the least. Ethiopia currently relies on ports in Djibouti for 95 Pct of its international trade, while the Ports of Sudan and Berbera (mostly for aid) and Ethiopian Airlines (mostly for perishable goods, such as flowers) cover most of the remainder.

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