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Somalia’s Transitional Federal Parliament approves the budget
The
Somali Parliament convened this week to deliberate on the budget for 2011,
recently approved by the new TFG Cabinet. The budget, in total close to
one hundred million US dollars, gives priority to the security, defense,
reconciliation and reconstruction sectors. After a debate on Wednesday, in
its eleventh session, 281 MPs out of the 286 present voted in support of
the proposed budget, four abstained and one opposed it. It was the first
time that the TFG has had a budget endorsed by Parliament, although it was
clear that a number of the MPs were unclear where the money would be
coming from. The cabinet endorsed the budget on the assumption that thirty
percent of the funding would be mobilized locally, and the remaining
seventy percent would be provided by external partners.
Prime
Minister Mohammed also attended Parliament on Thursday to provide answers
to a number of questions which have been dominating TFG politics recently.
These included the agreements the government has signed with Saracen
International, the private security firm commissioned to provide training
for bodyguards for VIP personnel and other special forces; and the
contract signed with SKS of Dubai to take over Mogadishu International
Airport administration and management from the TFG. Saracen
International’s recent activities, including a deal reportedly covering
the training of a coastguard and anti-piracy force in Puntland are
currently under serious scrutiny by the UN and other bodies. The Prime
Minister told MPs that everything under these two agreements had been
arranged before he took office and he therefore said he needed time to
gather the relevant documentation. MPs said he should return to Parliament
within a month with the necessary details. In the meantime, Parliament
decided to suspend all activities by these two companies, including the
renovation works Saracen began two weeks ago on some infrastructural
projects, including the Martini Military Hospital. MPs made it clear the
Prime Minister was required to confront all those TFG officials who had
been involved in these agreements and obtain details from them.
In the
meantime, following the recent decision by Hizbul Islam to join Al-Shabaab,
and the takeover of the last Hizbul Islam positions by Al-Shabaab
fighters, the integration of the two groups has given rise to a number of
developments on the ground, including changes in the leadership of Al-Shabaab.
The new overall commander of the group is to be Ibrahim Al-Afghani,
replacing Emir Ahmed Abdi Godane, while a decentralized system has been
set up to accommodate other leading figures. Ahmed Godane “Abu Zubeyr” is
in charge of Al-Shabaab operations in Somaliland; Fuad Shongole is to
concentrate on Puntland; Sheikh Muktar Robow will continue to have
responsibility for Bay and Bakool, and Hassan Turki to have charge of
Lower Juba including Kismayo. Mogadishu and the surrounding areas are to
be under Sheikh Ali Dhere and Abdallah Fazul. Sheikh Hassan Dahir Aweys is
to be engaged in the central regions though for the time being he has gone
to Kismayo for “rehabilitation”. He is, of course, now working once again
with former colleagues from both Al-Itihaad and the Islamic Courts Union
when he was active in both groups in trying to manage differences between
so-called moderates and extremists. Reports suggest that senior Hizbul
Islam officials will be undergoing a period of briefing from Al-Shabaab,
and Hizbul Islam fighters of training in Al-Shabaab’s methods of
conflict.
This
merger underlines what A Week in the Horn has consistently argued – that
Hizbul Islam was no different from Al-Shabaab and it has never been ready
to join the peace process. Whatever some in the international community
might have claimed, there has never been any real possibility of
negotiations with Hassan Dahir Aweys or of molding Hizbul Islam to a
peaceful approach. The final proof lies in this “official” amalgamation of
Hizbul Islam and Al-Shabaab, though it is rather that Al-Shahaab has taken
over Hizbul Islam as that organization began to fall apart into its
component factions in the face of recent military defeats.
The
impact is already visible on the ground. First, recruits from Puntland and
Somaliland have started to flock in large numbers to Mogadishu, coming
from their usual areas to be (re-)trained and then re-deployed back to
their own territories. Secondly, a sizeable number of trained Al-Shabaab
fighters have been brought into Mogadishu with the apparent task of
continuing their fight against the areas controlled by TFG and AMISOM
troops. Despite the heavy losses Al-Shabaab suffered in its failed
offensive in August, it has once again brought in extra fighters and
increased the level of conflict in Mogadishu. For the first time it has
also been prepared to be involved in longer fire-fights, lasting for
half-an-hour or more, with TFG and AMISOM troops. The current Al-Shabaab
commanders and the main driving force for this renewed fighting in
Mogadishu are Sheikh Mukhtar Robow Abu Mansur, whose forces suffered so
badly in August, Sheikh Ali Dhere and Abdallah Fazul.
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A meeting of the Ethio-Sudanese Joint Border Development
Commission (JBDC)
The Ethio-Sudanese Joint Border Development Commission held its 13th
meeting in Sinja, the capital city of Sinnar State of the Republic
of the Sudan from 23rd to 25th December. The
Ethiopian Delegation was led by Ato Abay Woldu, the President of
Tigrai Regional State, while the Sudanese delegation was headed by
Engineer Ahmed Abbas Mohammed, the Governor of Sinnar State. The
Presidents of Amhara and Gambella Regional States in Ethiopia and
from the Sudan the Governors of Blue Nile and Gedaref States also
attended the meeting.
The meeting was officially opened by Professor Alamian Dafalla,
President of Higher Council for Decentralization who cordially
welcomed the Ethiopian Delegation to what he called their second
home in Sudan. It was an honor for Sinnar State to host the 13th
Ordinary Meeting of the JDBC, he said, and it represented the
excellent interaction between brothers who were tied together by
strong historical, geographical, social and cultural bonds which
opened the prospects to greater development, prosperity and
productive cooperation in all sectors.
Engineer Ahmed Abass Mohamed Saad expressed his hope that the
meeting would evaluate the progress achieved since the previous JBDC
meeting. He emphasized that the convening of the 13th JBDC meeting
in Sinja reflected the deep rooted cultural and traditional common
values of Ethiopia and the Sudan. This in turn indicated the
strength of the base on which their cooperation and true friendship
were founded. Ato Abay Woldu, as head of the Ethiopian delegation,
reiterated his firm conviction that the longstanding ties between
Ethiopia and the Sudan would serve as a basis for further
strengthening and consolidating their relations and their
cooperation. He noted that the previous meetings of the JBDC and its
achievements had contributed immensely to the prevailing cooperation
and close friendship. Sudan was, he added, the fourth largest
generator of investment and business activities in Ethiopia. He
emphasized that was and would continue to be a genuine and a
reliable friend of the Sudan and its people. It sincerely wished for
durable peace, economic progress and prosperity for the Sudan. This,
he added, was also in the interest of Ethiopia. Whatever happened in
the Sudan affected Ethiopia and vice versa.
The Commission carried out its discussions in three sub-committees
covering Political and Security matters; Economic, Trade, Investment
and Related Issues; and Social, Cultural, Tourism, Sport and Youth.
The two sides exchanged views on enhancing existing excellent
cooperation in different areas and adopted recommendations with a
view to further strengthening and consolidating cooperation. They
noted with satisfaction the degree of implementation of the minutes
of the previous meeting, the 12th JBDC meeting held in
Mekelle, in Tigrai Regional State in Ethiopia last December. Both
sides agreed on issues of mutual concern, and called for the
redoubling of efforts to enhance their joint work. The possibility
of upgrading various cooperative endeavors with a view of benefiting
both peoples was explored further, and both sides committed
themselves to focus more on addressing major challenges to peace and
stability as well as on their development endeavors.
The Commission noted the various meetings held at woreda and
zonal levels in April, June and July this year, and the
collaboration over issues relating to the common border. The JBDC
encouraged the various committees established on both sides of the
border to redouble their efforts and hold meetings in a sustained
and regular way. It recognized the role played by the elders from
both sides in their efforts to address any border problems. Both
sides agreed to enhance the work of their respective community
elders and provide support through an institutional framework.
There was extensive discussion on mechanisms for controlling the
trafficking of small arms and light weapons; on the need for
coordinated action to deter the on-going deforestation that is
having disastrous consequences for the environment on both sides of
the border; on how to embark on a coordinated endeavor to address
the challenges of human trafficking; on security and other
challenges created by well armed pastoralists involved in such
activities including deforestation; and on other issues of mutual
concern covering economics and trade as well as social, cultural and
other issues. The two sides agreed to establish new frameworks and
strengthen existing ones to deal with any and all challenges along
the border.
The Ethiopian side expressed its appreciation for the continued
efforts by the Government of the Republic of the Sudan to tackle the
challenges arising from those elements who wanted to cause trouble
along the border. Both sides reaffirmed the position taken by the
African Union with regard to the warrant of arrest issued by the
International Criminal Court against the President of the Republic
of the Sudan. They stressed the need for the forthcoming referendum
in the Southern Sudan to be conducted peacefully in accordance with
the CPA and agreed that whatever the outcome the close ties between
the Sudan and Ethiopia would remain steady and strong in all areas.
The Commission agreed to hold its next meeting in Ethiopia; the date
and the venue has yet to be finalized.
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MFA briefing on the Sudan for Parliament’s Foreign
Affairs Standing Committee
This week, officials from the Ministry of Foreign Affairs met and
held discussions with the Foreign, Defense and Security Affairs
Standing Committee of the House of Peoples’ Representatives. The
consultations focused on bilateral relations between the Sudan and
Ethiopia, and the upcoming referendum in South Sudan. On bilateral
relations, Ambassador Negash Kibret, Director General of African
Affairs in the Ministry explained at length the two countries’
cooperation in political, economic, and social as well as security
matters. Ethiopia’s relations with the Sudan were described as
excellent. Apart from the growing trade between the two countries,
Sudan is the fourth largest source of investment in Ethiopia. Both
countries are currently cooperating on the construction of power
transmission lines that will enable Ethiopia to export power and
earn foreign currency. Ethiopia currently imports a significant
amount of its fuel from Sudan further strengthening the relations
between the two countries. Cooperation in security matters has
included the foiling of attempts by the government in Asmara to
infiltrate armed opposition elements into Ethiopia through Sudanese
territory. This cooperation is all the more important because the
two countries share thousands of kilometers of boundary which has
yet to be clearly defined. A Joint Border Committee has been working
on this for quite some time now and is expected to make
recommendations to both parties in the near future. The officials of
the Ministry expressed their expectation that consultations between
the two parties would continue to provide cooperation in various
areas and further enhance bilateral relations.
The ministry officials also dealt with the issue of the upcoming
referendum in South Sudan, reiterating the government’s position of
full support to the CPA process and Ethiopia’s commitment to help
both parties to the agreement produce a working arrangement that
would ensure the peaceful conduct of the referendum and a negotiated
deal on post referendum issues. The officials pointed out that
Ethiopia shares borders with both parties, and both have a positive
rapport with the government. It was emphasized that Prime Minister
Meles has been working closely with both parties as well as with the
AU High Level Implementation Panel led by President Thabo Mbeki to
try to resolve outstanding issues. Officials made it clear Ethiopia
believes the AU and IGAD should play the leading role in ongoing
continental efforts towards peaceful resolution of the Sudanese
conflict. Ethiopia has expressed the hope that the referendum will
reflect the will and aspirations of the peoples of Sudan. It has,
however, made it clear it expects both parties to accept the choice
of the people whatever the outcome of the vote. Officials told the
Standing Committee that Ethiopia will remain committed to a peaceful
resolution of all conflicts in the Sudan. Any failure in Sudan would
have far-reaching consequences not only to the country but also to
the entire continent of Africa.
Members of the Committee, and other Representatives in attendance,
raised a number of questions over possible developments in the
region following the referendum which will be taking place on
January 9th. While commending the wide range of bilateral
relations between the Sudan and Ethiopia, Committee members urged
the government to redouble its efforts to help both parties to stick
to their agreement. They emphasized the greater role that AU and
IGAD could and should play in this regard. They also expressed
concern that spoilers in the region, led by the regime in Asmara,
might be attempting to take advantage of any problems to try and
make further efforts to destabilize Ethiopia. Officials of the
Ministry noted that this was a threat the government took seriously,
and they did not rule out the possibility of the government of
Eritrea resorting to its old ways even in the aftermath of the
referendum. In conclusion, the Committee chairperson thanked the
officials of the Ministry for their briefing and expressed the hope
that such forums would continue in the future.
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Altinbas Holding to invest in Ethiopia
Last week, Prime Minister Meles received Mr. Iman Altinbas, the
Chairman of Altinbas Holding, and a delegation from Altinbas
Holding, one of the biggest Turkish Companies. The delegation also
met Deputy Prime Minister and Foreign Minister Ato Haile-Mariam
Desalegn, as well as the Ministers of Industry, Mines, Urban
Development and Construction and other officials. The subject of the
discussions was the decision of Altinbas to invest in various
sectors in Ethiopia. Mr. Altinbas told Prime Minister Meles that the
company had decided to establish a textile factory in Adama, and to
extend its investment on a large scale into cotton production,
mining, real estate development and the service sector. Mr. Iman
said the decision had been taken on the basis of information
provided by the Ethiopian Embassy in Ankara and following the talks
he had had with various ministers during this first visit to
Ethiopia. The Prime Minister welcomed the company’s decision to
invest and play a key role in helping the progressive economic
development of Ethiopia. He briefly rehearsed the existing historic
and strong friendly bilateral relationship between Turkey and
Ethiopia, and emphasized that the government was determined to
provide the necessary support to encourage potential investors like
Altinbas to take part in the recently drawn up Growth and
Transformation Plan (GTP). The delegation later held talks with
Deputy Prime Minister and Foreign Minister Haile-Mariam who also
underlined the strong economic, social and political ties existing
between the two countries. He assured the group that the government
was ready to give all-round support to the company’s investment
efforts.
The delegation visited two of the existing Turkish investments in
Ethiopia, AYKA Textile and Investment Plc. located at Alemgena, and
ELSE Addis, in Adama. Altinbas’s chairman said that the company has
already conducted assessments in Adama and had selected a target
area to establish its own factory there. Since its foundation in
1950s, Altinbas Holding has become one of the leading international
investment groups in Turkey with an annual turnover of some UD$4
billion. Its operations include activities in mining, energy,
banking and financing, shipping and logistics, construction, and
various other sectors.
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The
14th meeting of the Nile Equatorial Lakes Council of
Ministers
The Nile Equatorial Lakes Council of Ministers (NELCOM) held its 14th
meeting on December 16th in Entebbe. The meeting was
preceded by a two day meeting of the Nile Equatorial Lakes Technical
Advisory Committee (NELTAC). Despite membership of NELCOM, Egypt
and Sudan did not attend the meeting because of their concern over
the signing of the Nile Cooperative Framework Agreement (CFA)
earlier this year by five upper Nile riparian countries (Ethiopia,
Tanzania, Kenya, Uganda and Rwanda). In fact, they made efforts to
block the convening of the meeting, even trying to convince the
Democratic Republic of Congo (DRC), the current chair of NELCOM to
cancel the meeting after participants had already arrived in
Entebbe. The meeting was attended by Ministers from Burundi,
Tanzania, Ethiopia and Uganda, and representatives from DRC, Rwanda
and Kenya as well as NELTAC members from all the sub-basin
countries, officials of the institutions and representatives of
donor partners. The Ethiopian delegation, headed by Mr. Alemayehu
Tegenu, Minister of Water and Energy, attended the meeting as an
observer.
At the opening session, the Executive Director of the Nile Basin
Initiative, and representatives of development partners and of
NELCOM members made statements. Tanzania noted the importance of
water security and the role of upstream countries in fostering
cooperation. As the tenure of the DRC as chair of both NELTAC and
NELCOM had ended, and in the absence of Egypt which was due to take
the chairmanship, Kenya was elected as chair. On the basis of the
report of NELTAC, the meeting discussed a range of governance,
institutional, financial, and human resource management issues. It
endorsed the recommendation by NELTAC that the Ethiopia-Kenya
interconnection should remain as part of the power projects
portfolio. Further consideration should be given to new power
projects with a trans-boundary dimension within the region.
Delegates were reminded that the 12th East African
Community (EAC) Heads of States Summit resolved to host a special
summit of the riparian countries which would review the status of
the Nile Cooperative Framework next March.
Ato Alemayehu took the opportunity to thank NELCOM for inviting
Ethiopia to participate as an observer. He noted that the upstream
riparian countries were facing increased demand for water. There was
little development of hydropower on the upper reaches of the Nile
and they had the smallest per capita electricity supply in the
entire Nile basin. Upstream source countries had little irrigation
infrastructural development and were unable to mitigate the impact
of recurrent drought. They were undergoing rapid economic growth and
urbanization which was increasing the overall demand for water. They
all faced similar challenges over the issue of claims for a fair
share of the use of the Nile. Ato Alemayehu noted that Ethiopia had
commissioned three hydropower schemes with a total installed
capacity of 1200MW in one year, and he underlined that the need for
power called for collaboration between Ethiopia and NEL countries
through the construction of the Ethiopia-Kenya regional transmission
line. He urged constructive dialogue to foster cooperation
throughout the Nile Basin.
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Core principles of Ethiopia’s Foreign
Policy: Ethio-Italy relations
Since the establishment of its federal form of government, Ethiopia
has believed that the implementation of policies, strategies and
laws to encourage rapid economic development, democratization and
peace are a matter of survival. The government has promulgated
various policies and strategies, notably in its Foreign Affairs and
National Security Policy and Strategy. This makes it clear that
Ethiopia’s foreign relations with the rest of the world should be
directed towards creating an atmosphere to encourage market
opportunities, investment and technical support as well as
soliciting grants and loans to finance the country’s development
endeavors; eliminating, or at least, reducing external security
threats; minimizing the negative effects of globalization; and
resisting external threats and reducing vulnerability, with
democratization being a key element. Following these basic
objectives, Ethiopia’s foreign relations with the rest of the world
including Europe have grown rapidly. It was only after putting in
place the necessary mechanisms and by shifting the main focus of its
relationships towards trade, investment and technology transfer that
Ethiopia began to enjoy the opportunities for assistance and
development available from European countries, such as Italy.
Ethiopia and Italy, of course, have overcome
the problems arising from the eras of colonialism and fascism that
affected their relations from time to time. The relationship between
the two countries today, following the introduction of the current
Foreign Policy Strategy, has seen a steadily strengthening trend in
all areas. In fact, a longstanding historical relationship has been
consolidated by various cooperation agreements and by a whole series
of high level visits. Recent visits to Italy by Ethiopian officials
have included Prime Minister Meles (2004) and former Foreign
Minister Seyoum (February and April 2009). Visits by Italian
officials have included visits by Prime Minister, Mr. Romano Prodi,
(January 2007), and by Foreign Minister Franco Frattini (January
2010). The visit of Prime Minister Meles to Italy in 2004 was a
particular landmark. Ethiopia and Italy signed agreements for a soft
loan of 220 million Euros for the Gilgel Gibe II hydropower project,
for the cancellation of US $432 million of debts and for the return
of the Axum Obelisk. There was also the agreement for a series of
regular political consultation between the two Foreign Ministries
marking the opening of a new chapter in bilateral cooperation
between Italy and Ethiopia.
Ethiopia views Italy as one of its most valuable partners for
economic cooperation. Ethio-Italian Development Cooperation was
originally guided by an agreement signed between the two countries
in 1999. Under this, Italy allocated 108.5 million Euros mainly
focusing on health, education, and rural development. The agreement
was replaced by a new development cooperation framework agreement in
April 2009 providing for an outlay of 46.4 million Euros for the
period of 2009-2011. This allows for various projects focusing on
Rural Water and Sanitation (WASH) and Agricultural Value Chains in
the Oromiya, SNNP, Amhara and Tigray Regional States for 9.6 million
Euros. Under a bilateral accord signed in November by Italy’s
Ambassador to Ethiopia, Mr. Renzo Mario Rosso, and Ato Ahmed Shide,
State Minister of MoFED, another 8.2 million Euros has been provided
for Ethiopia’s 2010-2012 healthcare sector development projects.
Italy, of course, provided substantial support for the Gilgel Gibe
11 dam which was built by the Salini Construction Company; and
during his visit in January this year, Italian Foreign Minister
Frattini attended the formal inauguration of the dam by Prime
Minister Meles.
Ethiopia and Italy signed a bilateral Investment Promotion and
Protection Agreement in 1994; and Italian businessmen discussed over
two hundred direct investment projects in Ethiopia between July 1992
and July 2008 with possible capital involvement of 3.7 billion birr.
Of these 54 projects with a total outlay of over 700 million birr
are operational, while the rest are in implementation and
pre-implementation phases. Given the growing investment and market
opportunities of Ethiopia, and the traditional relationship that
existed for so long time between the two countries in the business
area, Ethiopia believes that this relationship could be far more
extensive. It will continue to work hard to encourage greater
Italian investment in Ethiopia. It has made it clear it would like
to see Italy consider the establishment of a specific Italian
industrial zone in Ethiopia, something that both China and Turkey
have agreed to.
Trade relations between Ethiopia and Italy have continued to expand
rapidly especially since 1997. The overall volume of trade grew more
than fivefold between 1997 and 2009. Just over 1 billion birr in
1997, it reached 5.54 billion birr in 2008 before falling back to
3.8 billion birr in 2009. The trade balance, however, remains firmly
in favor of Italy with Ethiopian exports amounting to 561 million
birr last year and imports from Italy reaching 3.21 billion birr.
The main commodities that Ethiopia exports to Italy are coffee,
hides and skin. Its imports from Italy include manufacturing goods
and construction equipment.
Italy has, of course, a long interest in the Horn of Africa going
back well over a hundred years, , and it attaches great importance
to the stability of the sub-region. It has an especial concern with
regional security issues including piracy and terrorism, and in
security and stability in Somalia, all elements in which Ethiopia
continues to have a strong stake. It’s to be recalled that Italy
recently took the commendable step of allocating 40 million Euros
for the African Union’s operations in Somalia. Ethiopia strongly
believes Italy will continue to be interested in the Horn of Africa.
It hopes Italy will continue to take the lead in soliciting backing
from the international community for the support of the TFG in
Somalia, and continue to take the lead on the issue of Somalia at
European Union level.
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May we take this opportunity to wish
all our readers a safe, successful and prosperous New Year
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