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A Ministerial Press Conference
On Thursday, Deputy Prime Minister and Foreign Minister, Ato
Hailemariam Desalegn, gave his monthly press conference, covering a
number of issues including meetings with the Diaspora, and the
government’s new approach towards Eritrea. He also briefed the media
on the Great Ethiopian Renaissance Dam, going into some detail of
the facts and figures. He noted the establishment of a National
Council by the cabinet to organize and lead popular support for the
project. The Minister emphasized the importance of developing
infrastructure in Africa and of its value for industrialization. He
was anxious that the international community should support this for
Africa. Africa had after all only been able to exploit no more than
5% of its hydropower potential compared with over 70% in Europe and
North America. Ethiopia has only managed 3.5% so far. The origins of
the project go back to 1964 when a US study of the Blue Nile
supported the idea of dams on the river. This is still valid, and
was revived by the Eastern Nile Council of Ministers under the NBI
framework two years ago. Its environmental value is undoubted to
assist in Ethiopia’s aim to have zero net carbon emissions by 2025.
The project’s environmental impact on local populations will be
minimal and any effect can easily be mitigated. There is no doubt
that Sudan and Egypt will also benefit largely from the project
through water conservation. Evaporation levels will drop
significantly, and sedimentation will also fall. It will provide a
valuable regulation of water flow in a period of climate change,
improve prospects of navigation and provide power for the Nile
valley.
Following the Egyptian revolution, there is a new momentum there and
the Egyptian Prime Minister is coming to Ethiopia shortly together
with public diplomacy groups to discuss the issue. There is, said
the Deputy Prime Minister, a desire on both sides to discuss
matters. Ethiopia believed that policy makers in Egypt, and the
younger generations, were beginning to understand the values of the
dam. As far as Egyptian requests for further information on the dam,
this could only happen after Egypt signed the Cooperative Framework
Agreement of the Nile Basin. Ethiopia has friendly relations with
Sudan, and the Sudan government now appears to support the project.
In response to questions the Deputy Prime Minister said that the
President of Sudan in interviews had said the project would help
Sudan, improve the flow of water in the summer and overall increase
the amount of water available to the Sudan.
The Deputy Prime Minister also spoke about the recent meetings with
the Diaspora in Europe and America, describing these as highly
successful and positive. In addition to making clear their support
for the Renaissance Dam, participants took the opportunity to raise
other issues including problems over bureaucratic bottlenecks and
problems of good governance relating to investment and other
issues. There were attempts to disrupt but these were confined to
small groups drawn from the previous regime or members of armed
rebel groups, merely trying to prevent the meetings being held.
Other subjects included forthcoming visits and meetings, in
particular the India /Africa Forum next month, and the visit of the
President of South Korea. The Deputy Prime Minister also noted that
Ethiopia rejected the recent US State Department Human Rights report
and had distributed a statement to that effect, as we noted in A
Week in the Horn last week.
The Deputy Prime Minister also referred to Ethiopia’s new approach
to Eritrea when responding to questions, stressing that Ethiopia
would abide by all international legal issues. Ethiopia, he pointed
out had a right to defend itself against attack. Its response,
however, would be proportional, but this did not mean it would be
similar, meaning that it would not respond to terrorist attacks by
doing the same thing. He added that Ethiopia fully supported the
Eritrean opposition groups and the Eritrean people in their desire
for a change of government in Eritrea.
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Chairperson Ping’s report on Somalia
On Thursday, AU Chairperson, Dr. Jean Ping, presented a report to
the AU Peace and Security Council on Somalia, covering the political
and humanitarian situation and the efforts being made by the African
Union (AU) and the larger international community in support of
peace, stability and reconciliation. The report recalled the IGAD
Heads of State and Government Summit in Addis Ababa on January 30th
had stressed the need to avoid a political vacuum after the
transitional period ends on August 20th, and had reached
a consensus on the necessity to extend the term of the current
Transitional Federal Parliament (TFP). The Assembly of the AU then
endorsed the IGAD decision to extend the term of the TFP, and this
was followed by the TFP’s decision to extend its term for three
years, starting from the end of the current transitional period. The
Parliament also called for the new election for the President of the
Transitional Federal Government (TFG), as well as of the Speaker of
the TFP and his deputies. Dr. Ping’s report noted that some members
of the international community strongly condemned the extension,
which, they observed, was done without due consultations with
relevant stakeholders. The report also added that the regional
administration of Puntland and Ahlu Sunna wal Jama’a (ASWJ) both
rejected the unilateral action of the TFP. Dr. Ping pointed out that
the PSC had supported efforts by AMISOM, IGAD and UNPOS to help
bridge differences among Somali stakeholders on the transitional
arrangements and attempts to expedite implementation of the most
urgent transitional tasks by August 20th. He emphasized
the importance of Somali stakeholders reaching agreement on these
issues. Continuation of the current situation could only undermine
efforts to promote peace and reconciliation.
Dr. Ping referred to the UN‐sponsored
high‐level
consultative meeting in Nairobi last week attended by the Speaker of
the TFP, the Presidents of Puntland and Galmudug regions,
representatives of Ahlu Sunna wal Jama’a and key partners, including
the AU, the European Union (EU), the League of Arab States and the
Organization of the Islamic Conference (OIC), as well as by
Ethiopia, Kenya, Sudan and Uganda. The intent was to reinvigorate
dialogue, consultation and cooperation among the Somali institutions
and other stakeholders, in order to agree a way forward to end the
transition and determine post‐transition
arrangements. Regrettably, the President and the Cabinet of the TFG,
after numerous attempts to cancel the meeting, refused to attend
arguing that it was counterproductive and could further factionalize
Somalia. Dr. Ping noted that participants reached consensus on a
number of issues: on the need to end the transition according to the
provisions of the Transitional Federal Charter (TFC), which calls
for elections of the President, the Speaker and his deputies before
the end of the transition; to extend the mandate of the TFP for two
years to enable it to complete certain critical tasks, including
preparations for national elections; to enhance security and to
redouble joint efforts to defeat extremism; to reform the current
Parliament and to intensify processes of outreach and reconciliation
with the “states”, regional authorities, civil society and the
Diaspora; to accelerate progress towards a new federal Constitution;
to implement previous agreements between the TFG, Puntland, regional
administrations and Ahlu Sunna wal Jama’a; and to increase the
provision of humanitarian and development assistance, at federal,
state, regional and district levels. It was proposed that the next
meeting should take place in Somalia.
Chairperson Ping urged the TFG to extend the required cooperation,
observing that as the end of the transition period approached many
tasks including the finalization and adoption of a new Federal
Constitution and the restructuring of the Somali security forces,
had not been completed. The report underlined that the continuing
disagreements between the TFG and the TFP had the effect of impeding
implementation of the transitional mandate as stipulated in the
Djibouti Agreement and the Transitional Federal Charter. These and
other factors continued to pose serious challenges to the peace
process, and had the potential to undermine the military successes
that the TFG and pro‐TFG
forces, with the support of AMISOM, had achieved in Mogadishu and
other regions of Somalia.
The report noted that AMISOM leadership had continued active
engagement with Somali transitional leaders and other interlocutors
to try to reach consensus on managing the transition. Despite all
efforts, however, there must be concern that Somali stakeholders
will not produce acceptable, inclusive, participatory and legitimate
transitional and post‐transitional
arrangements. They need to demonstrate real political will and
determination. Somalis, of course, have primary responsibility for
the restoration of peace and security. Dr. Ping made clear his
appreciation of Uganda and Burundi’s commitment to peace in Somalia,
and encouraged other African countries that have pledged troops and
contributions to provide them rapidly. He also reiterated the AU
call to the United Nations Security Council and the international
community as a whole to provide the necessary political, financial
and technical support to the enhanced AMISOM. The PSC, at its 245th
meeting, requested the Security Council to authorize an enhanced
support package for AMISOM, funded through UN assessed
contributions, to cater for reimbursements for Contingent Owned
Equipment (COE) and the payment of troop allowances at UN rates, to
provide adequate and sustainable support for AMISOM. The Council
also requested the imposition of a naval blockade and a no‐fly
zone. Dr. Ping noted that these requests remained as relevant today
as when they were last communicated to the Security Council last
October. He acknowledged the AU’s appreciation for UN support for
AMISOM, but he also called on the Security Council to consider
providing additional assistance to enable AMISOM to discharge its
mandate fully.
The Peace and Security Council was also briefed by Ambassador Mahiga,
the UN Secretary-General’s Special Representative, who stressed the
complex nature of the problem, suggesting IGAD was the best answer
to provide the way forward.
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The UN Security Council meets
Meanwhile, this week the United Nations Security Council also held a
session on developments in Somalia. UN Under-Secretary-General, Lyn
Pascoe briefed the Council in a closed session on current
developments and on the recent UN meeting in Nairobi. He emphasized
the improving security situation and noted that the TFG and AMISOM
now controlled more than 60% of Mogadishu. He reiterated the
frustration of the international community over the continued
divisions within the TFG leadership and the difficulties this
created for accomplishing the remaining transitional tasks. Mr.
Pascoe said the presence of the TFP, the Puntland leadership, the
Galmudug administration and the representatives of Ahlu Suna wal
Jama’a at the conference provided for shared experiences in creating
administrative arrangements and institutions of governance. The
Security Council was informed of the refusal of the President and
the Prime Minister of the TFG to attend the consultative meeting.
The Special Representative of the Secretary General, Ambassador
Mahiga had, however, met the President of the TFG during a visit to
Tanzania, and he supported the proposed reconciliation conference,
announced by the Somali Government for June 11th.
Ambassador Mahiga said the UN would participate officially and would
assist.
Considerable tension is reported in Mogadishu currently after Sharif
Hassan Sheik Aden, the Speaker of the TFG, returned after attending
the UN conference in Nairobi. Nearly a hundred MPs have organized a
motion criticizing the Speaker for going to the meeting after the
government refused to attend. The Speaker held a press conference on
arrival to explain his attendance. He said he had used the occasion
to talk about Somali issues with the international community and
defend the TFP’s decision to extend its term. He mentioned the
compromise proposal made in Nairobi which was to extend the TFP
mandate for two years rather than the three that the parliament had
claimed. The Speaker said he would report back to parliament on the
decisions of the conference, which he described as a victory.
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An Anti-Piracy Conference in Dubai
On Monday and Tuesday this week, the United Arab Emirates hosted a
counter-piracy conference in Dubai under the title: “Global Threat,
Regional responses: Forging a Common Approach to Maritime Piracy.”
The conference, attended by government officials from sixty
countries, including over twenty foreign ministers, and nearly 200
senior shipping industry leaders, was addressed by UN
Secretary-General Ban ki-Moon and briefed among others by Somalia’s
Foreign Minister, Mohammed Abdullahi Omar. The UN Secretary-General
called for a comprehensive solution to solving the problem of piracy
in the Gulf of Aden: “Piracy is not a water-borne disease. It is a
symptom of conditions on the ground, including the overall security
and political situation in Somalia”. So he added “our response must
be holistic and comprehensive, encompassing simultaneous action on
three fronts: deterrence, security and the rule of law, and
development” The TFG Foreign Minister noted that “it is equally
clear that piracy can only be uprooted on land, where it grows and
persists.” He stressed that the international community had to make
the necessary and urgent investment in Somali security forces “to
build up the capacity of the Somali state and establish its national
authority”.
At its conclusion the conference called for Somali Federal and
Regional authorities to cooperate and set up an internal joint
coordination mechanism for security and for judiciary sector
development to improve the effectiveness of support from the
international community. The thirteen point conference declaration
called on the international community to carry out a comprehensive
strategy of support to Somalia, prioritizing assistance to the
Federal government and to the regional authorities of Galmudug and
Puntland, and to Somaliland, to improve security and establish a
system of governance and rule of law. The declaration called on the
international community to expand the resources available for
projects supporting capacity building and economic development in
Somalia and other states that suffered directly from piracy. This
should include the provision of coordinated training as well as
material and financial capacity to improve land-based security and
livelihood in Somalia to deter and prevent piracy. Over five million
US dollars were promised to the Trust Fund to Support the
Initiatives of States to Counter Piracy off the Coast of Somalia by
the UAE, the Netherlands, Norway, France, South Korea and others.
Conference participants agreed to work together to actively pursue a
comprehensive and fully resourced approach to combating piracy and
the conditions which give rise to it. They also recognised the role
played by the Contact Group on Piracy and called on the
international community to fully endorse and support all initiatives
to combat piracy. Other concerns included naval action and pursuit,
capture and prosecution of pirates, and ransom payments, and the
plight of hostages held by pirates.
Shipping owners made it clear they would like to see an increased
military and naval presence off the shores of Somalia, in the Gulf
of Aden and the Indian Ocean. Pirates operating in these waters
carried out 15 out of the 16 hijackings that took place in the first
three months of this year, and as of March 24th there
were 28 ships and 576 hostages held by Somali pirates according to
the International Maritime Organization. Other bodies monitoring
pirate activity suggest that figures may be as high as over 40 ships
and at least 700 hostages when smaller fishing boats are included.
According to one estimate the total cost of piracy last year,
including ransoms paid, insurance premiums, extra security
precautions, and naval activity amounted to as much as 12 billion US
dollars.
The UN Security Council expressed its concern earlier in the month
with Security Council Resolution 1976 (2011). This called for the
establishment of specialized international courts and prisons as
well as new laws to help counter piracy off Somalia. The resolution
said the Security Council remained gravely concerned about the
threat of piracy and armed robbery, the expansion of pirate activity
into the western Indian Ocean, the increase in pirate capacity and
the growing violence used by pirates. It condemned in the strongest
possible terms any and all violence against individuals. It
emphasized the importance of finding a comprehensive solution to the
problem and stressed the need to build up Somalia’s potential for
sustainable economic growth to tackle the underlying causes
including poverty. It also reaffirmed respect for Somalia’s rights
to natural offshore resources including fisheries and affirmed the
importance of preventing illegal dumping of toxic materials and the
importance of investigating any such cases. The resolution said the
Council had urgently decided “to consider the establishment of
specialized Somali courts to try suspected pirates both in Somalia
and in the region including an extraterritorial Somali specialized
anti-piracy court.” The resolution called on the Secretary-General
to report within two months on the modalities for such prosecution
mechanisms. The resolution asks all nations to make piracy a
criminal offence, to cooperate in investigations and share evidence,
to implement anti-money laundering laws and facilitate the transfer
of suspected pirates. The Secretary-General is also requested to
report on the protection of Somali waters, on alleged illegal
fishing and dumping within six months. Many of these measures are
based on the suggestions made by former French minister, Jack Lang,
who recently produced a report for the Secretary-General on Legal
Issues Related to Piracy off the Coast of Somalia.
It is the view of A Week in the Horn that piracy can be addressed
holistically in the framework of establishing peace and security in
general in Somalia. Obviously piracy is the outcome of statelessness
in Somalia. The amount of money that the international community has
put into counter piracy activity recently would have brought radical
changes, if not miracles in Somalia, if it had been geared towards
strengthening state institutions at regional and federal level in
the country.
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China and Ethiopia sign grant and loan agreements
This week, China’s Vice-Minister of Commerce, Mr. Fu Ziying has been
visiting Ethiopia, and on Monday he signed agreements with Ato Ahmed
Shide, State Minister of Finance and Economic Development providing
for grants and interest free loans of over 200 million birr for
projects that have yet to be decided. The two ministers also agreed
on the implementation of other projects including a feasibility
study for small-scale hydro-electric power projects, as well as a
bore-hole water supply project, provision of bio-gas equipment,
solar power and the supply of anti-malarial and other medical
equipment. These are being financed under previously agreed grants
and loans. Speaking at the signing ceremony, Industry Minister, Ato
Mekonnen Manyazewal, said the people of Ethiopia were extremely
grateful for China’s support. It was an example of the way
development partners should continue their genuine assistance to
help keep up the momentum Ethiopia’s growth was achieving. Mr. Fu
Ziying noted that cooperation between China and Ethiopia continued
to move forward in areas of investment, infrastructure and
development assistance: “We are working together in the industrial
and capacity building sectors as well as the construction of an
eastern industrial zone” in Dukem in East Oromia Zone to the south
of Addis Ababa.
Mr. Fu Ziying also had talks with Prime Minister Meles on Monday.
During their discussions, Prime Minister Meles emphasized Ethiopia’s
need for China’s support for the realization of its Growth and
Transformation Plan. He told the minister that Ethiopia hoped to
learn from the vast experience of China especially in the
construction of such major infrastructural projects as roads,
railways, and power plants. The Prime Minister said it was important
that relations between Ethiopia and China were elevated to a higher
level. He commended Chinese efforts to strengthen the strategic
partnership between China and Africa, and the building of the new
African Union headquarters. During his stay, Mr. Fu Ziying paid a
visit to the building which is being funded by China, to see
progress. In his discussions with the Prime Minister, which focused
largely on bilateral relations in trade and investment, Mr. Fu
Ziying expressed his government’s commitment to assist in the
realization of the Growth and Transformation Plan.
In a press conference before he left at the end of his three day
visit, Mr. Fu Ziying said that China would be launching a new
foreign assistance policy document next month which would lay out
the parameters of Chinese assistance to Africa clearly. He noted
that China was planning to provide extensive training over the next
three years to enhance Africa’s competitiveness in trade. China
currently allows nearly 5,000 products to be imported to China free
of quota and tariff restrictions.
China is, of course, one of Ethiopia’s most important trading
partners and sources of direct investment. According to the
Ethiopian Investment Agency well over a thousand investment licenses
had been issued to Chinese investors up to the beginning of December
last year, amounting to a total investment of 43.6 billion Birr. Of
these 253 enterprises are under operation. Bilateral trade volume in
2010 amounted to about 2 billion US dollars, and Ethiopia hopes this
will continue to rise. Ethiopia currently has an embassy in Beijing
and a Consulate General in Guangzhou. It is now considering opening
new Consulate General offices in the future. At the moment Ethiopian
Airlines flies to Beijing, Hong Kong and Guangzhou and will open up
a new destination, Hangzhou in July.
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A Mediation Support Unit for IGAD
Experts from IGAD and its partners met in Djibouti on Monday and
Tuesday this week to consider ways and means to set up a Mediation
Support Unit (MSU) for IGAD, to strengthen the institutional
capacity of IGAD in preventive diplomacy and mediation. Since the
expansion of its mandate in 1996, IGAD has been active in promoting
peaceful resolution of conflicts in the region. These efforts have
now culminated in development of a draft Regional Peace and Security
Strategy, to cover the next five years, and defining major
intervention areas and possible approaches for realization of
sustainable peace, security, and stability. Since IGAD is one of the
building blocks of the AU, it needs to harmonize its peace and
security programs with those of the AU in order to contribute to the
effective implementation of the African Peace and Security
Architecture (APSA), the continental framework for peace and
security interventions in Africa.
It is against this background and rationale that IGAD plans to
establish a Mediation Support Unit in order to provide
institutionalized and professional assistance to the member states.
The draft Strategy, expected to be endorsed by the next session of
IGAD’s Council of Ministers, has four main pillars: Early Warning,
Preventive Diplomacy and Mediation, Security Sector Programs, and
cross-cutting issues like Governance and Gender.
The meeting exchanged views on how IGAD should follow the strategy
regarding capacity building, at both national and regional levels;
networking with similar institutions both in and outside the region;
participation of CSOs and women in peace-making processes; and the
need for research and documentation for informed policy decision and
knowledge sharing. The experts insisted that
IGAD’s peacemaking process would have to be based on impartiality,
trust
and cooperation, inclusiveness, and flexibility and would have to be
non-threatening. The core functions of the MSU would be to
provide and co-ordinate mediation and preventive diplomacy support
to IGAD envoys and to member states;
to
undertake and co-ordinate capacity-building activities for mediation
and preventive diplomacy; to design a strategy to enhance these and
link them to regional efforts; advise IGAD officials on the role of
the Secretariat; co-ordinate development of policy and produce
operational guidelines; develop and co-ordinate involvement of IGAD
envoys and mediation experts; design ways to link diplomatic
activities regarding engagement of CSOs and monitoring of the
implementation of peace agreements.
This will be done in a number of ways, working through IGAD’s Early
Warning Mechanism to identify emerging conflicts and opportunities
for preventive diplomacy and mediation as well as working with the
UN, the AU and other actors on the widest level, and liaising with
the mediation capacity of the IGAD NGO/CSO Forum and the IGAD
Inter-Parliamentary Union (IPU). The experts emphasized that most of
the major conflicts in Africa fall simultaneously within the
peacemaking mandates of the UN, the AU and one of the RECs.
Regardless of who takes the lead, the critical issue should be that
the relevant organizations should co-ordinate their efforts and work
together. Which organization might be best suited to assume a lead
would depend on circumstances, resources available, views of member
states and, on occasion, the parties’ preferences. If parties agree,
their preference should be respected. IGAD’s advantage is its
knowledge of regional political dynamics, actors and cultures. It
should therefore
take the lead in mediating conflicts in the region with support from
the AU and the UN. The meeting looked in
detail at the structure and physical location for the proposed MSU.
The draft report is expected to be presented and endorsed by the
upcoming IGAD Council session.
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The Grand Ethiopian Renaissance Dam: what’s in a
name?
Since the cornerstone for the Renaissance Dam was laid, the country
has witnessed an exceptional outpouring of enthusiasm from people of
all walks of life. An impressive, indeed overwhelming, sense of
camaraderie has been shown by Ethiopians across the world. No
development in living memory has drawn as much support as Ethiopia’s
Renaissance Dam.
It isn’t really a surprise. There have been a considerable number of
hydroelectric dams built here in the last few years, more than
tripling the country’s power generating potential and capacity. They
have gone a long way to fuelling the country’s economic growth. They
will continue to do so in the years to come. The Gilgel Gibe series
of dams, Tana Beles, the Tekeze are only some of the dozen or so
such projects that are either completed or under construction. As A
Week in the Horn has shown this development makes enormous sense in
terms of export potential and for domestic use. Equally, it is
important to note that this is certainly the best way to ensure the
sort of “green” development that Ethiopia has always championed in
international forums. The Grand Ethiopian Renaissance Dam will be no
exception.
What makes the Renaissance Dam over the Nile so special is partly
its sheer size in terms of power generation and in cost. It is going
to have a reservoir twice as large as Lake Tana and is expected to
generate more than five thousand megawatts of power upon completion.
The estimated cost is more than 80 billion Birr. As impressive and
important is the project’s monumental symbolic value for all
Ethiopians, representing as it does a major step towards the
realization of the dreams of generations of Ethiopians. This will be
the largest dam ever to be built over the Nile and it is something
Ethiopians have been pushing for millennia. The Nile has, after all,
always been an object of fascination and a source of popular art and
myth. Generations of Ethiopian leaders have either sought to assert
their right to a share of the Nile waters or tried to carry out some
project or another to meet local demands. The fact that Ethiopians
have suffered starvation and hunger for so long, while the Nile
itself has continued to nurture life elsewhere, has always been a
source of discomfort. Hardly a day passed without an Ethiopian
leader trying to realize the long dream of putting the Nile waters
to use for the people of the country which contributes the bulk of
its waters and its soil. The project comes at a time when Ethiopia
has been making strenuous efforts to caste off its image as a
famine-ridden nation. This is a mark of the symbolism that it
represents to the people and government of Ethiopia.
It is no surprise that there is a palpable sense of euphoria, but in
a larger sense the reaction of the peoples of Ethiopia underlines
their dedication and commitment to carry through the campaign to rid
the country of poverty. The Dam is the largest infrastructural
project ever undertaken by Ethiopians. They are fully aware that the
country is being forced to foot the bills of all the hydroelectric
projects it has so far managed to build largely because most
international financiers have been reluctant to go ahead with such
projects due to pressure from other countries. The Renaissance Dam
is no exception. Its cost will be totally covered by the Ethiopian
government. The outpouring of public support is an expression of
Ethiopians’ defiance to such pressures. It is clear that nothing
will be allowed to deter the nation from embarking on this certainly
ambitious but potentially rewarding project.
In this, the peoples of Ethiopia have displayed a sense of
patriotism and single-mindedness that has surpassed the wildest
government expectations. There is no doubt the government was most
pleasantly surprised by the level of mobilization everyone has
displayed. Apart from heeding the call of the government to buy
bonds, various sections of society have gone way beyond this and
have been contributing significant amounts of their earnings as
donations to the cause of the Renaissance Dam. An equal measure of
dedication is being shown over purchase of bonds: civil servants,
farmers, businessmen, military personnel, students, prison inmates.
Everybody has come out en masse to respond to the government’s call.
The whole nation has spoken in unison. It is a testament to the
great significance everyone attaches to the project. In Addis Ababa
alone, it is expected that more than 7 billion Birr, or roughly 9
per cent of the cost of the project, will be collected. With the
participation in large numbers by hundreds of thousands of farmers
who are now making extra-money as a result of successful rural
development programs, the amount of money that is expected will be
very significant.
In fact, the purchase of bonds goes far beyond the government’s plan
to finance the construction of the Renaissance Dam. The most
important reason for launching this scheme was to encourage
Ethiopians to save, a very important element of the Growth and
Transformation Plan. Without strengthening the culture of saving,
the results of the GTP can only be ephemeral. To ensure the
successful transformation of Ethiopia into a middle income economy
in a few years, an important aspect of Ethiopia’s renaissance
necessarily requires significant savings to provide for the
sustainability of economic growth. It is fitting and proper that the
huge task of transforming society should start with an equally huge
project of far reaching economic, social and symbolic significance.
That the Renaissance Dam has already helped mobilize millions of
Ethiopians to buy bonds clearly demonstrates that long before
completion, the project is initiating millions into a culture of
saving so important to the nation’s transformation. Indeed, the
Grand Ethiopian Renaissance Dam is already showing promise that it
will remain true to its name.
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