Tallest building in Africa to be constructed in Ethiopia
A land agreement signed between China-based Guangdong Chuanhui Group and the Addis Ababa City Administration, Ethiopia should see construction start later this year on Africa's tallest building.

Although no final height has been given the 58-storey tower will be a five star hotel in Addis Ababa and, once completed, will be the tallest building on the continent, according to the developer.

The current record holder is the 54-story (223 m) Carlton Centre in Johannesburg, South Africa.

At a special signing ceremony, Addis Ababa's mayor, Kuma Demeksa, said the Chuan Hui International Hotel would "provide jobs and promote the local economic development" and would become "an African landmark".

The tower, one of five proposed luxury hotel projects in the capital, will cover 50000 m2 of land and is expected to cost ETB 2.4 billion (US$ 146.5 million).

Construction is expected to take 18 months. it is amazing!
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Bole Int’l Airport to Offer Free Wireless Internet Service
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Bole Int’l Airport to Offer Free Wireless Internet Service

Addis Ababa, September 21, 2010 (Addis Ababa) - The Ethiopian Airport Enterprise (EAE) said it is to start providing free wireless internet service at Bole International Airport.

In a press conference she gave here on Tuesday EAE Information and technology service acting head, Birhane Sisay said the service will be launched within a month.

The head said passengers will have access to free internet services in both the old and new terminals.

She said the Ethiopian Information Network Security Agency (INSA) and the Ethiopian Information Technology Agency have been working to launch the service.

EAE public relations head, Wondim Tekilu on his part said Bole International Airport has been chosen among the eastern African countries. Thus , he said the commencement of the service will further enhance its services.

It was noted that Bole International Airport is the main international gateway for the nation and also serving neighboring countries as a hub.

It is also the first airport in Africa to operate Bar Coded Boarding Passes (BCBP) for all international flights, two years ahead of the International Air Transport Association’s (IATA) deadline of 2010.
The operation of BCBP has simplified the check-in and boarding process for more than 3 million passengers who are currently using Addis Ababa Bole International Airport.

The enterprise, currently manages 15 airports, is undertaking reform study that would make it a competent enterprise in Africa in the coming 15 years.

- ENA

“Ethiopia” opens in the Czech Republic Exposition:
Presence of Ethiopia in the Czech Republic and Europe has been reinforced by the recent opening of a new “Ethiopia” exposition of the ZOO in the Czech city of Zlín.

It is a first ever European exposition dedicated only to Ethiopia and its species, says the Czech Republic embassy in a statement sent to Capital.

The “Ethiopia” exposition contains among others, large Gelada – five of which have been given Amharic names, as well as Rock Hyrax and many bird species.
Besides them the exposition includes also exhibition of the ethnic art of the Konso peoples of the SNNPR.

The construction of the “Ethiopia” complex started in 2009 with total cost of more than 1 million Euros. Most of the funding has been provided by the European Union.

The Zlín ZOO wants to diversify its cooperation with Ethiopia into other fields as well. It has initiated some biodiversity conservation projects, and it is considering further engagement in humanitarian field.

New !September 25 Posted by: suleyman | Today, 00:10 |


Ethiopia launches the construction of its biggest railway.
Watch Video Report Here

The government will be spending an average of 6 billion Birr per year for construction of the railway. According to the Ethiopian Railway Corporation (ERC), the construction would generate employment opportunity for over 300 thousand citizens.

Of course, Ethiopia is not new to train transport; nor is train transport foreign to Ethiopia. The two have had a century-old relations. Despite such a long tie, the poor train transport service in the country had, once, disrupted completely. At present, however, the service appears to have revived with modern technology by far better than the former.

Constructed in two phases, the new railway would link people in all corners of the country. According to Dr. Getachew Betru, Director General of ERC, the railway would stretch out in eight different directions across the country. Five railway tracks will be constructed in the first phase of the project.

In addition, the Addis Ababa light train project would extend from Ayat to Torhayloch Hospital joining the east to the west, the north to the south, and Dagmawi Minilik street to Kaliti main road. Dr. Getachew said the railway construction has two dimensions.

The new 317km railway would stretch from Addis Ababa to Me’eso town in Afar state crossing the rugged terrain. Chinese Company called CRGC will construct the railway.

ERC Board Chair, Hailemariam Desalegn said the railway would help sellers and consumers transact swiftly and at reasonable cost. The first phase of the project is expected to create over 300 thousand jobs. The government will spend 5 to 7 billion Birr annually for the project.

It’s the first of its kind

California’s Lincoln University opened its MBA program in Ethiopia on Tuesday.

The university accepts students for extension classes. In partnership with New Generation University, Lincoln University picked Ethiopia on the basis of local demand.

The evening programs provides rare opportunities for working professionals to pursue their education while staying employed, Charles Maples (Ph.D.), adjunct professor from Lincoln University told The Reporter.

The process to bring the university to Ethiopia took two years. There was a bureaucratic procedure to pass through the regulations. The university came here with projectors, laptops, texts and all the needed educational materials, Abetu Melaku, executive program director with university, told The Reporter.

The university plans to train a minimum of 25 students for the year 2010/11. As the university operates on the basis of a pilot program, the students are expected to pay 7,000 dollars a term. In a week’s time four lecturers from Lincoln University will take on the class. These lecturers will go back to their home bases and others will replace them from the same place, Abetu added.

“The millions of dollars that Ethiopians spend for transportation, accommodation and living allowances, not to mention the high tuition fee, will be saved while the flow of hard currency overseas will be tackled to some extent,” Charles told more than 20 students who attended the orientation course on Monday at the new generation university premises.

Lincoln University is an independent, private institution of higher learning founded in 1919. In addition to Ethiopia, currently the university is also running evening classes in Nigeria, Serbia, China, Vietnam and Canada.

ESL, China Exim Bank sign USD 234.7mln deal --------------------------------------------------------------------------------

National liner teams up with foreign company to establish marine institute


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The Ethiopian Shipping Lines (ESL) and China Exim Bank has signed a “term sheet” agreement involving a USD 234.7 loan for the procurement of nine vessel from a Chinese shipyard, Ambachew Abraha, Managing Director of the national flag carrier told The Reporter.

The two parties are expected to sign the final deal -- a contract agreement -- in November, which ensure would that the bank will facilitate 80 percent of the finance for the nine vessels the national liner will procure from a Chinese ship maker, according to the managing director.

ESL has earlier placed a firm order for nine vessels from a Chinese shipyard, Taizhou Kouan. Seven of the vessels will be semi-containers while the rest two are destined to be tanker ships, according to Ambachew.

The national liner took the move to double its fleet as the volume of import/export goods significantly increased over the last several years.

ESL, the only company that provides sea transport for businesses in Ethiopia, currently has nine vessels. The additional ships will allow the liner to raise it freight cargo capacity by more than a double.

The nine vessels will have an aggregate capacity of handling 279 tonnes “dead” weight.Ambachew, who served the national liners for a number of years as a managing director, came from China this week after signing the initial agreement with the bank.

ESL, which has been focusing on maritime transport for the last 45 years, has now teamed up with an Israeli company, YCF, to establish what will be the first marine institute academy of its kind in Ethiopia.

ESL and YCF, owner of ships flying the Liberian flag, will establish the maritime school inside Bahir Dar University, according to a press briefing the two parties gave this week. After three years of study, the would-be graduates from the maritime academy will go for a six-month additional training to Israel.

ESL and YCF will in the future establish a marine engineering course and training program for which graduates will for the time being leave to Israel to attend them, according to Ambachew.

Over the next decade, the marine academy plans to graduate 10,000 students, who will be earning an annual aggregate salary of USD 250 million, according to the representatives of ESL and YCF. A fresh graduate from the marine academy will earn an annual income of USD 25,000.

The British petroleum company, Tullow Oil, last Saturday announced its decision to prospect for oil in the south Omo valley, in southern Ethiopia. Tullow Oil discovered a huge deposit of crude oil in the Lake Albert basin in Uganda. Tullow said that it has signed an agreement with the Canadian oil company, Africa Oil, which enables them to jointly prospect for oil and gas in the South Omo Valley in Ethiopia and in different locations in Kenya.

Last year Africa Oil, the Vancouver-based company, bought exploration areas in the Ogaden basin, Kenya and Puntland. These concessions were previously held by Lundin Petroleum, the Swedish petroleum company. Recently, Africa Oil had also bought an exploration area covering 29,465 sq. km in the South Omo basin from White Nile, a British company.

Tullow Oil has bought a 50 percent stake in Africa Oil’s concession in Omo Valley and in four blocks in Kenya - 10BB, 10 A, 12A and 13T. The companies agreed to jointly prospect for oil and develop petroleum resources.

According to the agreement, Tullow Oil will reimburse the costs Africa Oil had incurred previously. The companies will share future exploration costs. Tullow Oil has discovered more than 2.5 billion barrels in the Uganda’s Albert basin.

Tullow Oil’s exploration manager, Mr. Angus McCoss, said that he was delighted with his company’s decision to extend its concessions in East Africa to Ethiopia and Kenya. Angus McCoss expressed his company’s commitment to explore the new areas in Ethiopia and Kenya with new partners. “Rift basins are the focus areas for Tuollow Oil and we hope to undertake a commendable job in Ethiopia and Kenya,” he said.

An industry analyst told The Reporter that the East Africa Rift System had an enormous oil potential. The East Arica Rift System covers Sudan, Ethiopia, Kenya, Tanzania and Uganda. The analyst said the oil discoveries in the Sudan in recent years and more recently in Uganda had attracted the attention of oil companies. Tullow Oil’s decision to work in Ethiopia and Kenya is a good news to the two countries.

Tullow Oil has 85 petroleum production sharing agreements and licenses in 23 countries in Africa, Europe, South America and South Asia. In Africa the company has petroleum inertest in Gabon, Mauritania, Congo Brazzaville, Côte d'Ivoire and Uganda. Africa Oil is engaged in oil exploration projects in Ethiopia, Puntland and Kenya.

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Karuturi Ploughs $10m into John Deere TractorsT
he agro company plans to acquire an additional 50 million dollars worth of equipment

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Karuturi Agro Products Plc., an Indian agricultural company, received 15 John Deere tractors on Wednesday, September 22, 2010, from Gedeb Engineering Plc, the sole distributor of the brand in Ethiopia, as part of a 10 million dollar order it had placed with the latter.

The handover ceremony of the tractors, 10 of which have 475 horsepower and five with 425 horsepower, was held at the National Oil Corporation’s (NOC) Bole station.

Before receiving the keys to the tractors, Surya Rao Karuturi, father of Sai Ramakrishna Karuturi, founder and managing director of the company, carried out pooja, a Hindu ritual performed on many occasions including the beginning of a new venture.

“These tractors come with attachments and complementary equipment such as planters, self-propelled sprayers, harvesters, and support equipment like fuel supply etc.,” Karuturi told Fortune. “Comprehensively, we spent 10 million dollars on all these. Each tractor costs around 350,000 dollars stand alone and can plough 75ht a day.”

The attachments are currently at Djibouti Port and are expected to arrive in about three months, according to Chombe Seyoum, managing director of Gedeb Engineering.

The tractors are to be used on 300,000ht Karuturi has leased in Jiksaw, Itang, and Lare weredas in Gambella Regional State, 700km west of Addis Abeba, one of the five projects it has in the country, according to the managing director.

To date, it is the company’s largest project with an investment of 1.4 billion dollars that incorporates the farming of palm oil, rice, and sugarcane, with the prospect of constructing a sugar mill.
The other projects are a 10,000ht investment in farms in Bako, Oromia Regional State, 251km southwest of the capital which it has leased for 30 years for the cultivation of maize, rice, and vegetables; a 188ht rose farm 15km from Weliso Town with a capital of 80 million dollars; and two rose farms on a total of 50ht in Holetta Town with a capital of 18 million dollars.

“These tractors are for the Gambella project,” Karuturi told Fortune. “We are getting more equipment worth 50 million dollars.”

Along with the 15 tractors imported for Karuturi, Gedeb has also shipped in four tractors for Morell Agro Industry Plc, an American company that is cultivating drought resistant wheat on 10,000ht in Bale, Oromia Regional State.

With such huge projects in the country, Karuturi has bought insurance policies from Nyala Insurance SC, the first insurer to provide crop insurance, for its crops, vehicles, and employees as well as maritime insurance.

Two years ago, Gedeb Engineering delivered 27 tractors with 75 horsepower to Karuturi, Chombe told Fortune.

Gedeb, which was established in 2005 with a capital of one million Birr that has since grown to 10 million Br, has been the sole distributor for John Deere in the country since 2006 and imports tractors, combiners, and different agricultural machineries

New cement factories expected to shrink gap

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Local cement producing factories that are under final stage for commissioning are expected to shrink the gap between demand and supply in the coming six months.

The country’s booming construction industry increased cement demand by 12 percent per annum starting from 2004, but the figure is currently way above 12 percent. “The current cement demand rate is higher than the previous growth rate,” one expert involved in the sector said.

Currently, local factories including small scale factories produce about 2.7 million ton of cement annually, while the estimated demand is over 8 million ton per annum.

The construction boom in the last three years, that triggered high cement demand, forced the government and some private companies to import the product. Though the imported cement was delivered to the market along with the local product, the market still did not settle down.

The gap between the high demand and short supply led the price of cement to scale up to 400 birr per quintal from the 250 birr price per quintal on the Addis Ababa market.

“The significant increase in cement production in the coming year will settle the market instability and fill the gap,” the expert added.

The new cement factories and others expansion that are expected to commence production in the coming few months will increase the supply of the product hence decreasing the wide gap that exists between demand and supply. This will actually force the price to decrease considerably.

The state-owned Mugher, the largest cement factory in the country, is currently expanding in order to increase its annual production to 2.4 million tones from the current 900,000 tones starting from the beginning of December 2010.

Private cement factories that are under construction or those that have finalized their projects are expected to minimize the cement demand gap by half along with Mugher’s new expansion, which is being constructed around Tatek Military Camp, 12km west of Addis Ababa.

One of the major private cement factories, the Chinese Hung Shen, is expected to commence production in November. The plant is located around Gebre Guracha, 165km northwest of Addis Ababa and has the capacity to produce four million tons of cement annually.
Experts say that cement demand is continuing to grow in relation with the rise of the construction sector. “The rapid rise of cement demand is expected to continue in the years to come, because currently most construction projects are halted due to cement shortage,” the experts explained. “When these projects revive, the demand will also grow.”

Currently about 25 local and foreign companies are registered in the country to engage in cement production, but most of them are not feasible, according to the information obtained from the Ministry of Mine and Energy

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