Agriculture in Ethiopia - The Ethiopian American

Agriculturein Ethiopia:Opportunities,Incentivesand Privilegesvolume 3 no.3 july 2013

THE ETHIOPIAN AMERICANis published byThe Ethiopian American LLC6394 Andrew Mathew TrcSpringfield VA 22150info@theethiopianamerican.comwww.theethiopianamerican.com06COVER STORYAgriculture in Ethiopia:Opportunities, Incentives and PrivilegesBy Tesfalem WaldyesEDITOR-IN-CHIEFOmer RediREPORTERSTesfalem WaldyesElias GebreselassieEmnet AssefaAndualem SisayEdom KassayeADVERTISING SALESBeleco Business PLCCONTRIBUTORSTariku Abas-EteneshGRAPHICS DESIGNC62 CommunicationsSUBSCRIPTIONUS - The Ethiopian American LLC6394 Andrew Mathew TrcSpringfield VA 22150Tel. 202-527-0980ETHIOPIA -Belco Business Plc,the sole marketing agentof the EthiopianAmerican LLC in EthiopiaP.O.Bos. 4832Tel. 0912-600-379addis ABABA, ETHIOPIAinfo@theethiopianamericanwww.theethiopianamerican.comIN THIS ISSUEFEATURED STORIESpg. 09Ethiopian Camels Strut to Export MarketsDespite ChallengesBy Elias Gebreselassiepg.12Has New Diaspora Policy Addressed AllDiaspora Concerns?By Emnet Assefapg.15Thriving Mining Sector Sees Rising Sharein Ethiopia’s EconomyBy Andualem Sisaypg.18Turning Athletics intoBusiness While Inspiring ChampionsBy Edom Kassayepg.21Reframing The AfricanRenaissanceBy Tariku Abas-Etenesh

COVER STORYAGRICULTURE IN ETHIOPIA:Opportunities, Incentivesand PrivilegesBy Tesfalem Waldyesphoto by Alem TesfayeEthiopia’s economy ispredominantly agrarian. In2011/12 alone, agricultureaccounted for 41 percentof the Gross Domestic Product (GDP)and contributed 90 percent of the foreigncurrency earning. The sector alsocovered 85 percent of the country’s employment.Its incontestable share in theoverall economic growth of the countryand potential for further growth, therefore,makes it a worthwhile sector formany to consider investing in. But broadfacts and figures are not just enoughfor business people to make informeddecisions before they put their hardearned fortunes into something. Hence,The Ethiopian American has identifiedsome of the paramount information andsummarized them into 15 most importantpoints you should know - includingopportunities, incentives and duty-freeprivileges tied to investment in agriculture- before you make any decision.1Of Ethiopia’s about 111.5 millionhectares total landmass, 74.3 millionhectares is considered suitable for cropproduction. An estimated 4.3 millionhectares of land has irrigation potential.Currently, only 15 million hectaresis utilized.2The federal government delineatedaround 3.7 million hectares of landfor agriculture investment. Close to 1.6million hectares with information abouttheir agro-ecological, soil, water potentialand other details, is deposited in thefederal land bank. The designated plotsof land located in Gambella, BenishangulGumuz and Southern regional states aresuitable for growing food crops, oil seeds,coffee and tea, cotton, palm oil, biofuelplants and livestock husbandry.3Investors shall have the right to acquireand develop plots of land eitherleasing from the government or reachingagreement with a landholder to transferpermanently his/her holding rights. Anyinvestor can rent rural land on contractualbasis after fulfilling a lease agreement.One can secure a mortgage right to use06 www.theethiopianamerican.com

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Photo by Omer RediEthiopian Camels Strut to ExportMarkets Despite ChallengesBy Elias GebreselassieTefera Hailu (MD), a veterinarianturned businessman,is adamant with what hesees as opportunities in thelivestock export business.He says the business he has been in forthe last 17 years is strutting to a goodprospect despite tough challenges withthe export of camels one area of hope.His company, Tefera Hailu PLC, exportssheep, goats, camels and cattle.“In the just concluded Ethiopian fiscalyear 2012/13, we exported about $2.5million worth of camel, which accountsfor about 35 percent of our total livestockexport,” Tefera said. “But this is far belowthe potential.”The major export destinations are Libya,Saudi Arabia and Egypt, while the placesof origin for camels are parts of Oromiaand Somali Region with preferences fortypes of camels also determining theirdestination. Big camels are destined toEgypt while the medium ones go to Libyaand the smallest ones to Saudi Arabia.Tefera’s optimism for business on camelsis not without a reason. Official data, forexample, shows compared to the country’shuge potential in this sector, the current exportis just the tip of the iceberg. In fact it isoften reported that the country is endowedwith a huge livestock reserve ranking 10thin the world and first in Africa.The Central Statistical Agency (CSA)report for the just concluded budget yearstates that there are about 54 million cattle,25.5 million sheep, 24.6 million goatsand nearly a million camels.About 60 percent of Ethiopia’s landmassis covered by pastoralist areas, even thoughthey represent only 11 percent of its population.Despite the potential, Ethiopia’s oonly earning from cattle export reached is$155 million in the same year, according tothe Ministry of Trade (MoT).MoT figures show during the 12 months,camel exports were about $39 million,accounting for 25 percent of the total revenuefrom livestock exports to the MiddleEast and North Africa (MENA) region.The top importer of camels from Ethiopiawas Egypt followed by Djibouti, Sudan,Somalia, Libya, Lebanon, Saudi Arabiaand United Arab Emirates, in that order.Kelifa Hussein, Director of Live Animal,Hide and Skin Marketing Directorate atMoT stated that camel exports duringthe last fiscal year was only 48 and 59percent of the target in terms of quantityand monetary earnings. He attributedthis shortfall to economic hardships facedin Sudan - a major buyer of Ethiopiancamels - illegal flow of livestock to neighboringcountries, lack of awareness on thebenefits of the sector, lack of internationalstandard quarantine center and outdatedand too long marketing chain.“For the past year and half, we haveundertaken a sector study involvingall stakeholders, and prepared a draftproclamation,” said Kelifa adding thatthe proclamation has made its way to theCouncil of Ministers, and is expected to beratified by parliament next year.There are two proclamations currently- one on Rawhide and Skin Trade and asecond on Live Animal Trade - with aparticular desire to streamline the livestockand associated sectors, stop illicit flows oflivestock and improve qualityKelifa, however, reiterated that his ministryand other responsible Ethiopian governmentinstitutions are not waiting for theproclamations to be ratified to act on issuesin the industry. For example, five quarantinecenters in areas bordering with neighboringcountries are under construction,www.theethiopianamerican.com 09

FEATURED STORIESTrend of Ethiopia’s export commodities in the past two budget yearsEFY 2011/1211 months performanceEFY 2012/13,11 months performance0 500,000 1,000,0001,500,000 2,000,000*This data is obtained from the Ministry of Trade Coffee Oil seeds Khat meat flowersLivestockwhile also working on bilateral agreementswith these countries on trans-boundaryanimal disease and illegal trade.Three of the quarantine centers underconstruction by the Ministry of Agriculture(MoA) are each located near borderswith Sudan, Djibouti and the self-declaredbreakaway republic of Somaliland.Nevertheless, the projects have reportedlyfaced setbacks including change of originalvenue of construction, and delays relatedto contractors’ faults.However, the MoA - a major actor in theindustry - says the proclamations underpreparation are will go way beyond justputting a legal framework to the trade.Getachew Bekele, Livestock By-productsQuality Improvement Senior Expert atMoA, says the two proclamations willdefine who can participate in the trade,what kinds of animals are eligible fortrading, hygiene and nutrition standards,and transportation criteria.Currently, the export of livestock isreserved for Ethiopian nationals andmembers of the Diaspora community, whohave not changed their citizenship, sinceEthiopia does not allow dual citizenship.However, exports of meat and associatedproducts are open to any business peoplebecause it is deemed a value adding sector.“Once the proclamations are passed, tradelicense will be handled by MoT, competencyaccreditation and route of travel byMoA, customs authority will follow the appropriateregimen has been followed, whileMinistry of Industry (MoI) will ensuresthe quality of goods arriving at markets,”added Getachew.However another expert from the MoAwho asked not be identified, cautionedagainst putting all the responsibilities onthe government.“At the end of the day the exporters havea responsibility to make sure their exportproducts are hygienically good, competitivein price and better quantity, if theyare to catch up with the likes of Australia,Brazil and India, which are major livestockand beef exporters,” the expert argues.The expert’s arguments are largely inline with the findings of a recent researchpublished by the International LivestockResearch Institute (ILRI). This researchfound that shortage of animal feed resultingfrom drought and land use change hasresulted in high feed prices in turn leadingto high domestic prices and reducedcompetitiveness. This reduces incentivesfor uniform feeding regimes, resultingin non-uniform lines of animals beingmarketed.Another area the ILRI report touches hasto with administrative and structural factorssuch as lack of minimum weight andpricing regulationsat border,and access toworking capital,in addition tolate paymentsfrom importers.Hence, thereport suggestedthe establishmentof a task force including government,industry and research communityto address the issues and conduct furtherresearches in a number of areas includingmarket driven feed provision, costs andbarriers.This proposals, while welcomed by Teferacannot come soon enough for the numerouschallenges his business is facing tryingto export livestock including camel.The issue of inland transportation forcamels has also been a major challenge,according to him. The ceasing of cargoand passenger transportation through theEthio-Djibouti rail line which forced thebusiness to use the alternative route by wayof pick up cars could only worsen the situation,at times causing injuries and deathson the camels.“We have to face issuesof contraband, marketvolatility such as theeconomic and politicalcrisis affecting top exportdestinations like Egypt,”Tefera said.Tefera is, however, optimistic that hisbusiness will grow better in the futureonce the construction of a new Ethio-Djibouti rail line is completed allowinghim to exploit better the abundance ofarid areas in the country which is suitablefor raising camels, and the high demandfrom buyers and the expected regulatoryeffects of the draft proclamations.Kelifa shares this optimism; one of thequarantine centers is set to start operationssoon, and when the four are completed newexport destinations such as Oman, Kuwaitand Qatar are on the cards, with the longterm target of reachingMiddle Eastern communitiesEurope and otherregions.“Although it is only livecamels exported at themoment, there are plansby some companies tostart exporting camelmeat products,” said Kelifa.Elfora PLC, owned by the Ethiopianborn Saudi tycoon, Sheik MohammedHussein Al-Amoudi, is reportedly amongthe companies interested.The cumulative effects may eventuallyenable the nation to meet its plans ofexporting over one million heads oflivestock, earning $285.3 million, in the2013/14 budget year.10 www.theethiopianamerican.com

FEATURED STORIESHas New Diaspora PolicyAddressed AllDiaspora Concerns?By Emnet AssefaJust last month, the Ethiopiangovernment officially launchedits Diaspora Policy marking thebeginning of its implementationfew months after it was ratifiedby the legislature. The developmentof the policy, crafted by the Ministry ofForeign Affairs, took close to three years.Over these years, the government heldseries of discussions with all stakeholdersincluding members of the Diaspora residingin different parts of the world.A number of issues ranging from rights andbenefits of the Diaspora to government’srole in assisting and recognizing their participation,are enshrined in the Policy.Targeting more than two million Ethiopiansliving outside their country, the Policy’saim is defined as “informing the variousservices rendered to ensure participationof the Ethiopian Diaspora and their rightsand benefits on one hand, and ensuringthe utilization of Diaspora transfer ofKnowledge, finance, interaction and othercontributions on the other.”The Policy, accordingly, features a numberof issues that are hoped to improve therelationship between the Ethiopian Diasporaand the government as well as thecommunity at large.It encourages the Diaspora to be involvedand share their experiences inimport-export, tour organization, marketintelligence, brokerages and salesmanshipactivities and suggests incentives for youngmembers of the Diaspora who want tocome back and volunteer.Aiming to promote the flow of foreigncurrency to the country, be it in the formof investment or remittances, the Policypromises to facilitate the establishmentrewarding systems. Diaspora participationon good governance and democracy ofthe country is stated in a manner thatbroadens their role in research and policyformulation. Mechanisms that enable theDiaspora to participate in national policyresearch and formulation will be established,according to this document.Tax-incentives on imports of equipmentfor non-profit making activities run bymembers of the Diaspora are also said toimprove the involvement of the Diasporain humanitarian and charity activitiesin their home country. The Policy alsoassures of putting in place mechanisms toenable the Diaspora to get housing in allregions as well as Addis Ababa and DireDawa city administrations through savingand help returnees find jobs in the country.Taking information exchange as the topmost input for the implementation of thePolicy, information data base, website andother information delivery mechanismsare going to be established in the near future.An intended celebration of NationalDiaspora Day at home also aims to pullthe Diaspora to their country.The greater end result of the Policy,which is also hoped to bring about anorganized system to deal with Diaspora issuesthroughout the government structure,is improving relations between governmentand the Diaspora; hence, the Policy pushesfor strengthening of existing and new diasporaassociations, giving especial emphasisto organized youth Diaspora participation.Accordingly, the Ministry of ForeignAffairs has brought together its previouslyseparate activities regarding Diaspora toone organized system.According to Feisel Aliyi, Director ofDiaspora Participation and EngagementDirectorate at the MoFA, the Policy puts inplace a clear direction in how members ofthe Diaspora can take part in the socio-economicdevelopments of the country.But do these provisions in the Policy meanthe document addressed on all concernsrepeatedly raised by the Diaspora?Though the ratification of the Policy is anachievement on its own, some membersof the Diaspora believe it has not gone farenough. They would have liked to see aclear policy on how Diaspora professionalscould participate in Ethiopia’s development.According to Yohannes Assefa (Esq), anEthiopian-American Securities Lawyer, anumber of issues have been raised by membersof the Diaspora on forums organizedabroad. He stated the need to open upsectors, such as banking and telecom, for theDiaspora as well as enabling them to practicelaw in Ethiopia as examples of questionsraised on forums he participated on.12 www.theethiopianamerican.com

A LOOK BACK TO LAST YEAR’S FORUMphotos by Matt Andrea

investment opportunities of coal in ethiopiaSource:Ethiopia Geological surveyThriving MiningSector Sees RisingShare in Ethiopia’sEconomyBy Andualem SisayIt was in 1999 the idea of engagingin the mining business firstcrossed Yegoraw Zewdalem’smind when he came back fromCalifornia to visit his family inAddis Ababa, 12 years after he left.“I looked at all sectors in Ethiopia andfound gemstones export more promising.Hence, I decided to take samples to theUnited States at the end of my visit,”Yegoraw said.Then came venturing into the businesswith the initial ups and downs, whichcaused him to lose money in his firstmining attempt in Somali region, between2003 and 2005. That was due to lack ofexperience; he now sees bright future inthe business.Just last year, he exported some 700kilograms of gemstones, including highquality opal with price tag of $25,000 –30,000 for ten grams.He gets the stones from middlemen whocollect them from traditional miners’cooperatives. It is estimated that currentlythere are around 30 cooperatives engagedin gemstones mining in Ethiopia, eachhaving 20 to 50 members.Catching up fast on coffeeThe history of coffee as the leadingforeign currency generating commodity ofEthiopia began to fade away over the pastfive years. Its share is now down to about25 percent of the total $3 billion annualexport income of the country from about40 percent five years ago.The diversification of export items, whichbrought flower and other produces to themajor export commodities list; the shift oftraditional miners from contraband to formalline of business; and the fluctuations ofthe global coffee market, among others, arethe reasons for the decline of coffee’s share.Since last year, the less known miningsector has become the source of Ethiopia’swww.theethiopianamerican.com 15

FEATURED STORIESsecond export commodity. It took over oilseeds’position earning $526 million in thepast 11 months (July 2012 – May, 2013)catching up fast on coffee, which generated$654 million.The latest geology survey shows thatEthiopia is endowed with natural resourcesranging from tantalum, which is used formanufacturing of mobile phones, laptopsand other electronic gadgets, to coal andpotash. The list includes, platinum, nickel,copper, silica, diatomite, bentonite, sodaash, gemstones, phosphorus, salt, geothermal,other industrial and constructionminerals, among others.Gold mineThe recent data from the Ministry of Mines(MoME) shows that out of the total earningsfrom mineral export $419 was earnedfrom one million traditional gold minersoperating in six regions of the country.The rest of this earning is attributed toMIDROC Gold Mining Company, whichthe government privatized in 1997 to theEthiopian born- Saudi tycoon, SheikhMohammed Hussein Ali Al-Amoudi, whoseMIDROC Ethiopia Group Investment hasover 40 companies and affiliates in Ethiopia.While the promising potash is expected totake over the lead role in the coming fewyears, gold is Ethiopia’s top hard currencyearner mineral generating an average ofhalf a billion US Dollars annually sincethe previous fiscal year.Potash is one natural resource from whichthe country expects huge revenue in thenear future. The Canadian firm, AllanaPotash and Fertilizer Company, co-foundedby an Ethiopian diaspora, has invested inthe Danakhil Depression of Afar Region.It has secured financing from two significantstrategic investors - the InternationalFinance Corporation (IFC), a privatesector financing arm of the World BankGroup, and Liberty Metals and Mining, amember of Liberty Mutual Group.Anticipating to start production of onemillion tons a year by mid-2015, Allanahas also got green light from Africa ExportImport Bank (Afrexim Bank), while offeringshares on the Toronto Stock Exchange,at the same time.The new Ethiopia- Djibouti railroad,which recently secured some $300 millionloan from the Indian Export Import Bank,is among the ingredients that are expectedto boost performance of mining and otherexport businesses in Ethiopia. This is alsoexpected to ease transportation of potashand fertilizer, indicating a promising futurefor the sector.“Had it not been for the decline of goldprices globally, mining could have generatedmore foreign currency to the countrythan coffee,” says Bacha Faji, PublicRelations Director at MoME.Estimations by the Ministry indicate thatthe western part of Ethiopia - aroundLega Dembi and Sakaro - alone has productionpotential of about five tons of goldper annum. In addition, gold productionhas recently started in Tigray, Gambella,southern parts of the country and Gujiand Borena zones of Oromia.Tullow-Africa Oil Corp.Oil exploration blocksin East AfricaMuch Anticipated Oil & GasFor the past two decades, there has beenaggressive exploration for oil and naturalgas in the four major sedimentary basinsof Ogaden, Gambella, Blue Nile andSouthern Rift Valley. Though none of thecompanies prospecting for oil and gas inEthiopia have announced the much anticipatedproduction news so far, there havebeen growing interests on the sub-sector.Most recent developments are elevatinghope of the people. The discoveries ofoil in neighbouring countries, Kenya andUganda, by Tullow Oil Company (partnerof Africa Oil), which Ethiopia has alsowelcomed to its territories, and recentnews from the company are boosting hopeof the country.“The most significant well results duringthe period were the Etuko-1 oil discoveryin Kenya and encountering an oil pronesystem in Ethiopia with the Sabisa-1 well,”Tullow stated in its 2013 half year reportreleased on July 2, 2013.Coal ProductionOne of the natural resources the countryhas started utilizing is coal. CurrentlyEthio-Pak Coal Mining firm, which was16 www.theethiopianamerican.com

Of the total 135 mining companies registered36 are owned by Ethiopians while 33 are jointventures between Ethiopians and foreigners.established as a joint venture by twoendowment companies (Ezana Miningwith 40% share and Mesobe CementFactory with 25% share) partnering witha Pakistani company with 35% share,seems to be on the lead. It has startedproducing coal since 2009 near Jimmaarea of Oromia Region, 300km west ofAddis Ababa. The area is said to have 14million tons coal reserve.In addition, to further utilize the huge coalpotential around Yayou area of OromiaRegion, the government has decided toinvest solo after its repeated attempt toattract private investors has failed.Yayou Coal Phosphate project is one of thelargest of about a dozen coal reserve sites inEthiopia. It is estimated to have a potentialof producing 300,000 tons of urea for fertilizerand 90 megawatts of electricity per year.The Big PictureThough Ethiopia has listed over 875 mineraloccurrences in SIG Afrique mineralresources database, the share of the miningsector to the country’s gross domesticProduct (GDP) is currently 1.5 percent.The Ministry of Mines envisages boostingthe current annual revenue earnings fromminerals export tenfold ($5-6 billion/year)by 2020 while at the same time producingmost of the currently imported industryinputs locally; hence, import substitute.To encourage investment in the sector,the government has recently reduced theincome tax from 35 to 25 percent. Lowerroyalty payment levels, exemption fromcustoms duty and taxes on mining equipment,guarantees in respect of the rightto sell minerals locally or abroad are alsoincluded in the new law.With no investment capital limits, governmentalso provides guarantees for openingof a local account in a foreign currency.“What we need from investors in the sectoris only detailed work plan with budgetbreakdown,” Bacha says.Out of the total of 135 mining companiescurrently operating in the country,55 are engaged in production of variousminerals ranging from gold, coal andtantalum to various gemstones such asopal. The remaining are at explorationlevel searching and analyzing economicviability of other natural resourcesincluding potash and crude oil.In addition, the country has also engagedRussian Geological Survey, Zaru Bezggeologia,and its Ethiopian counterpart toanalyze the major input for nuclear powerdevelopment - uranium deposit - found sixyears back in Bale zone of Oromia Region.Any Room for Diaspora?Recent statistics show that the engagementof the Ethiopian Diaspora in the miningsector is encouraging.Most of these investors are Ethiopian Diasporaslike Yegoraw, according to Bacha.The government is now encouraging bothforeign and Ethiopian Diaspora investorsto invest on areas where technology andvalue addition is need the most. Thisincludes improving traditional miners’performance investing on upgrading theirskills and equipments and engaging incutting and polishing gemstones businessbefore export.“Though there are challenges, this is thesector I am pushing my fellow Diasporasinto,” Yegoraw said while urging the authoritiesto decrease the week-long periodconsumed on paper works at customs justto clear duty free imported machineries.www.theethiopianamerican.com 17

FEATURED STORIESTurning Athletics into BusinessWhile Inspiring ChampionsBy Edom KassayeYaya Village in Sululta town, EthiopiaPhoto By Edom KasayeDejene Shewakena was aboutto give up on his athleticsdreams before turning 27because he couldn’t affordtraining expenses while sustaining his life.The past six years, life has showed him itsdarkest side pushing him to the edges. Butjust on the brink of time, he was given achance to keep his dream alive, thanks to anopportunity to train at Yaya Village, the firstof its kind high-altitude training facility inSululta town, one of the ideal training placesfor athletes in Ethiopia.“Aspiring to win world cross countrychampionship could have been impossiblehad it not been for Yaya Village’scontribution to keeping young Ethiopianathletes vision,” said Dejene who is nowtraining full time at Yaya Village to emergevictorious at the Coca Cola Challenge inAddis Ababa this September.A high-altitude training center and a fourstar resort, Yaya Village is built on 50,000sqm plot at an altitude of 2,700 metersabove sea level on the Sululta plateau,11kms north of the capital, right on theAddis Ababa-Gojam road. On smoothdriving day, it is just 40 minutes drive fromBole International Airport.Joseph Kibur, 40, an Ethiopian born Canadianinvestor is the main brain behind thisfacility. Him being a major shareholder andHaile Gebrselassie and two other businesspersons having stakes, Yaya Village is partlya path to realize a grand vision of springingmore future Olympic champions fromEthiopia. Construction started in 2009 andwhen completed by 2015, it will becomea prominent village of athletics and otherleisure activities attracting local and foreignprofessional and aspiring athletes as well astourists who wish to experience training inthe Ethiopian high altitude.The Journey to YayaEleven years old Joseph left his country tojoin his father who was then studying M.Sc inChemistry in Montreal. In 1990, after graduatingfrom high school, Joseph won a scholarshipand joined Simon Fraser University.When he was in college he started athleticsand won many cross country running includingthe Canadian Cross Country championat the age of 21 and represented Canadain many World Cross Country Championships.He once ran with Haile Gebreselase,representing Canada.Upon concluding his study in 1996,he launched his web hosting companyand worked till he sold it in 2003 for 10million USD.After living in Canada for more than twodecades, the Business and Computer Sciencegraduate, returned home initially anticipatingto engage in the field he knows better,information technology.However, when Joseph met Haile in 2009through a common friend, things took adifferent turn leading to the birth of the 80million Birr project now called Yaya Village.“It is a dream come true. I wish I could havethis facility when I was 20 years old,” he saidrecollecting his short career as an athlete.“It is possible,” was not the only answerJoseph got from Haile when he invited thedozens Olympic and world records holderto be part of his dream athletic center. Hailealso connected him to another friend whowas already in a possession of the plot inSululta Yaya Village is now built on.Yaya Village has breathetaking landscape,picturesque green scenery and revitalizingfresh air. Add to that all the facilities includinga gymnasium, massage service, sauna,physiotherapy and football and volleyballpitches along with horse riding ground.It started operation in January 2012, after18 www.theethiopianamerican.com

first phase construction was completedconsuming about 20 million Birr.“It was a very insightful business from thevery beginning. However, that little distancefrom Addis Ababa which caused associatedinfrastructure problems make it challenging,”Joseph, who is President of YayaVillage, added.Joseph initially thought that within a snapof a finger he can change everything andwhen that did not happen it naturally led todisappointments. “I have to slow down tothe level of the system I am in,” he then toldhimself. “My to do list kept on growing everyday. What I thought I can do in one day endsup taking a month,” he remembers the challengeshe has gone through. “For example,it took us about a year to get electricity andwater. There is no landline telephone serviceyet that we are using wireless connection.”Accordingly, he advises that while investingin Ethiopia one shouldn’t assume what theyknow is sufficient. As much as he was, onemay spend almost every day dealing withthe bureaucracy than on creative thinking.“Always do as a trial; start small, don’t jumpand put all your money at once, you mayend up disappointing yourself.”Nevertheless, going through their own shareof, at times frustrating, challenges, Josephand his business partners have now broughtYaya Village to a blossoming stage to thedelight of not only the proprietors but alsoaspiring champions like Dejene and otherlocals who have got jobs at the centre.It currently employs 75 permanent and 25temporary workers full time with the figureexpected to triple upon the total completionof the project in 18 months.Local businesses, NGO’s and differentembassies use the center as for their retreat,training, workshop and vacation purposes.The second phase construction is currentlyunderway consuming about 10 millionBirr so far. As it provides services with thecompleted facilities, the remaining constructionworks such as international standardswimming pool, will be completed in thecoming one and half year.And just one year into the business, YayaVillage registered a five million Birr profit.“It is an untapped market, it can be moreprofitable in the long run,” Joseph said.The Ethiopian National Athletics team iscurrently training at this center in preparationfor the upcoming World AthleticsChampionship. Foreign Olympic and worldchampions from various countries alsocamp at Yaya Village and use its facilitiescrowning Sululta as an athletics town,according to Joseph.Most foreign athletes used to go only toKenya because the neighboring country,whose athletes always present the fiercestchallenges to Ethiopian runners, had highaltitude training centers for about ten yearsnow. The team that has come together courtesyof Joseph’s initiative has now presentedan alternative with standard treatment in4-star resort with specially prepared food forathletes and other guests, just less than anhour drive from Addis Ababa.For example, athletes from the west haveto train at high altitudes through Octoberto May for the climate in their country iscold, while Kenya, Morocco, South Africaand Ethiopia have hot weather at that sameseason. This make the four countries thebest options for athletes from the NorthernHemipshere.Photo By Edom KasayeBut Yaya Village has competitive advantages,according to Elshadai Negash, CommunicationConsultant and sports commentatorspecializing in athletics. “It is near the capital,the logistic burden is not as big as any of itscompetitors while at the same time keepingprivacy as it is outside of the city.”“Yaya show cases Ethiopia as a successfulathletics country as well as a destinationfor high altitude training facility,” Elshadaiadded.It will also be a medium to connect Ethiopianathletics family with the internationalathletics community, according to him.Hence, Yaya Village is not only earning thecountry highly needed hard currency, it alsoopened doors for skills exchange on differentathletics training tactics.Local athletes have no more to climb all theway to Suluta mountains, training and getback to Addis without even taking shower“We are putting together all that they need;they run in the forest right, beside the forestthere is the sole compound,” said Joseph.Yaya Girls Running Program is also an initiativeaiming to improve the lives of womenby giving them chance to train in athleticsand accommodation, job skills and Englishlanguage. “Yaya village gives opportunityand makes a difference in people’s life. Makinga difference in others is something I can’tdo easily in other country,” Joseph expressedhis satisfaction.Through Sululta Athletics Club, localathletes are also given a chance to train atYaya Village free of charge using the facilitiesincluding running court. Dejene is, therefore,one the beneficiaries who are encouraged tokeep the flame of hope lit in their heart bythe support from the center.The same way Abebe Bikila and otherlegendary athletes remain inspirations tothe current and future athletics championsfrom Ethiopia, Yaya Village aims to remaina beacon directing both its proprietors andbeneficiaries to a better future.www.theethiopianamerican.com 19

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ReframingThe AfricanRenaissanceBy Tariku Abas-EteneshAfrica rising?Since May 2013, boldfaced and prominentbig billboards greet passersby in AddisAbaba reading: Arise Africa. It is arguablythe most frequently heard avowal duringthe recently celebrated golden Jubilee ofthe African Union (AU), under the theme:Pan-Africanism and African renaissance.The theme’s comfortingly deserved meaningis attributed to the current economic development,according to IMF data, in variousAfrican countries including Ethiopia. Whata positive spirit to celebrate the anniversarywith! As a Nigerian proverb says it, when aman says yes, his Chi (his personal god) saysyes; and so, when a continent says I am rising,the spirits of her citizens rise up with it.Despite the sense of positivism and audacitythe slogan entails, however, I believe it ishigh time for us, Africans, to deliberate withcaution not only the realities that gave ‘Africarising’ its meaningful context, but also thedirection Africa is rising. And allow me onemore question, is Africa claiming ‘to berising’ because it is so, or it is claiming so,because the West declared it?’Anyone who knows about the greatinfrastructure developments and recentdiscoveries of precious minerals and fossil oilthat changed the economic trajectory of anumber of African countries might assumethe question is ill constructed or playing evasiveof the facts on the ground. Well, this isnot my intention. Denying the facts would bea self debasing attempt and condescendingto AU. Rather, mine is an honest worry thatour continent should be insisting on framingits renaissance on a grassroots Pan-Africandrives in order to avoid repeating the mistakesof the 1960’s.The world is in recession and the corollarychallenges are spewing in forms of revolutionsagainst governments, tensions betweenreligions, and xenophobic tendencies againstthe scapegoat “others”.Against such backdrops, the rise that is beingpositively pronounced about Africa could alsobe regarded as a caution call for the continent.Why? For the obvious reason as the liberationmovements of the 1960’s were thwarted intonot completing the liberation project andended up being nominal political freedoms.And the dream for economic liberation wasstalled by nightmares of mishandled euphoriathat gave way for the former colonial mastersto hijack the much needed stability and prosperityand turn it into hotbeds of coups. As anAfrican proverb puts it ‘when a cock is drunk,he forgets the hawk.’The year of Africa - the 1960 – was not onlya time when Africa woke up free against allodds into a hostile world that was not willingto allow her enough time to gather herbreath. A polarized world that was caughtup in cold war engulfed the continent to notonly take sides but also disorient the fragilefreedom it just had won. The scares of thecold war coupled with conflict ridden economiesthe continent has spent a good part ofthe past half century wasting indebted to theWest and in some terms still paying the pricethrough the malignant dependence on aid.Now after half a century, Africa is set onanother proud stride; yet it does so into aworld reality with no less a cause for polarizationthan was furnished during the 1960’s.It is waking up and flexing its muscles yetin another tumultuous time of tensions. Forinstance, religious extremism which used tobe rare in the African continent hast spread,especially after the recession, thus riskingthe stability of a continent that has juststarted to positively paint herself. And likethe ‘cold war’ the former colonial powers areexploiting the tensions, as in the case in Mali,to further strengthen their presence as well assafeguard their interests in the continent.Africa is not an island and what is happeningelsewhere directly affects it. And oftentimes, the effects come from the greedyhawks who mean exploitation and fillingtheir pockets. A recently released reporton oil and mining industry practices inAfrica indicates the continent is sufferingfrom secret deals whereby multinationalcorporations and elites in various countriescut the mass out from sharing the wealth.And the trends, except in a few countries,seem to be the same and not changing.Adding fire to fuel is the other face of the developmenttrend that some of the countrieslike Ethiopia, applauded for being on therise, are doing taking growth as excuse forthe carelessness to uphold human rights andfree speech as stipulated in their constitutions.In Ethiopia, for instance, the constructionsection is in a boom that buildingssprout like mushroom and roads spread in ablink. However, the country’s human rightsrecord is one of the bleakest, according toAmnesty International. This is then thechallenge. Authoritarian governments, despitethe economic muscle flexing in varioussectors, could use the positive trend as licenseto impose human right abuses even more.So where is the worry? One might even askthat the mentioned challenges have been inDo not lookwhere youfell, butwhere youslippedwww.theethiopianamerican.com 21

FEATURED STORIESAfrica since independence and what makesthem different now? The challenge for me istwofold. The first is the attraction of foreigninvestors who would like to take part in thepositive development in the continent. Thisis not bad in itself, but inviting investors withno check and balance in place to guaranteethe inclusion of the mass in sharing the profitmade from the economic development,would only graven the burden of the mass.And such is the reality that would challengethe stability and security of the continent.As seen in many of the land grab trends invarious counties in the continent, the frontline bearer of the harsh burden of huge infrastructuredevelopments as well as evictionsare the disfranchised mass. The people whoare being taken out of their farms are not theelites in their palaces but the poor.With the positive tint that had been unheardof in the media coverage on Africa, and thedevelopment drives on the ground acrossthe continent a great causation and maturityand above all leadership is required to avoidthe pitfall of the euphoria in to the tide ofgalvanizing unity through maturing andleadership from the AU that promises to leadthe next half century with a vision focusedon and owned by the people of the continent.I say the involvement of the peopleshould take a naivety that has never beentried in the past half century.Diorama of AfricanexperiencesOne of the new developments during theAU celebrations in May was the announcementof the African Vision 2063. The visionpromised to be owned by the peoples ofAfrica at all of its stages. The strategic planincluded priorities such as Growth and transformation,regional integration, peace andstability, gender equality and agriculture.In line with this ‘people led’ Vision 2063, I believethat the AU should start to lead the continentinto soul-searching. But what sort of soulsearching do I mean? I mean a grassroots,committed and honest Pan-Africanism drivethat could be spearheaded by the AU thatdepart from the gradualism and mediocrity ofthe past. A roaring lion kills no game.Africa should not set her sail using someoneelse’s star and thus the experiences on whichthe designing of the vision should be basedshould come out of Africa. For the Vision tobe, a vision of the mass, the tone of renaissanceshould be reframed with a take on thecontinent’s history. The AU should launchdrive that commences from examining ametaphorical diorama of the experiencesAfrican nations that portray the dreamsthat the AU should live up to. As clearlyinscribed in the AU anthem that goes:“Let us all unite and toil together,To give the best we have to Africa,The cradle of mankind and fount of culture,Our pride and hope at break of dawn,the native vision, I propose should havethree chapters that represent our continentsaspirations. The chapter should be namedEthiopia, Ghana and Congo respectively.Chapter one Ethiopia:If renaissance is rebirth, the rebirth that Africaseeks to have is an Ethiopian reality. AUshould start the renaissance by reclaimingEthiopia. I don’t mean a reality only of thecurrent Ethiopia, but the Ethiopia of the ancient,the word that means Africa grace andgreatness. Ethiopia that represented the greatAfrican fortitude, and civilization and thepride of civilization, religion and defiance.By it, I mean that what Africa had and lostdue to the great misfortunes of in humanhistory such as slavery and colonization,has left its hint in Ethiopia. Ethiopia is theonly surviving African nation that exhibitsto the world what colonization and slaveryhas done to the rest of Africa. If the restof Africa was not subjected to slavery andcolonization, culture and language shouldhave been maintained.Chapter one Ghana:Though the worst crime in human slaveryperpetrated on it and prolonged dehumanizingcolonization practically left the continentwith nothing to start herself as a continentready enough to compete the communityof nations that has deprived her, Africa canpoint at Ghana as phoenix the continent hasgrown out of the ashes and Freon nothingstated to deal with democracy and system ofgovernments that the rest of the world tookcenturies to exercise.Africa should have Ghana in the vision tosay that despite the pitfall of coups that ragedthe rising freedom in the continent, Ghanahas proven that too could be put behind andmake strides to development and progress.Africa could rise above all her problems.That is Ghana.Chapter one Congo:Despite the great promises in the natural resourcesand the potential to change the faceand fate of the continent, the Congo remainsone of the great samples of inefficiency ofthe continent that clearly put the prophecyline of Franz Fanon who said “whoevercontrolled the Congo basin controls Africa”.And the Congo is the greatest challenges ofthe Renaissance. What the AU and the peopleof Africa should do is to make sure theyare the masters of their own fates and theowner of their own resources and the arbiterof their own conflict and the designers oftheir own futures. But is Africa in control ofthe Congo basin? That is the summary ofthe three chapter vision 2063.22 www.theethiopianamerican.com

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