Chairperson for the National Electoral Board & more – 21st Dec 2023

Salaam salaam from BA! This is the Rorshok Ethiopia Update from the 21st of December twenty twenty-three A quick summary of what's going down in Ethiopia.

Let’s kick off this episode with news from the Parliament. A few weeks ago, we told you that Prime Minister Abiy Ahmed had named an eight-member committee to recommend a new chairperson for the National Electoral Board and that the committee came up with two names for the position. Well, the PM nominated Melate Work Hailu, the former Customs Commission legal department head and the House of People’s Representatives approved the nomination. She was sworn in as chairperson on Tuesday, the 19th. According to the government, her vast experience in public administration, education, and non-affiliation with any political party made her the right choice for the post. She was also the head of the office of the Electoral Board for three years.

But not everyone was happy with Melate Work’s appointment. The Common Council for Political Parties said that the appointment was illegal as the Prime Minister didn’t consult representatives of opposition parties after receiving recommendations from the recruiting committee. The disgruntled council added that even if the appointment was legal and an ‘angel’ was chosen, it would have no benefits unless the system is fixed and peace and security is ensured.

In other news, The House also voted to approve nominations for Chief Executive Officer of Ethiopia’s Broadcasting Corporation and the National Press Agency. Recall that last week, PM Abiy appointed the former CEO of the Ethiopian Broadcasting Corporation as State Minister of Trade and Regional Integration.

Last week, we told you about how Taye Dendea was removed from his post as state minister of peace and subsequently arrested. His family has expressed concern over his not being brought before court and not being charged with any crime yet, even though he is still under custody. His wife told the media that he is not allowed to meet his family and lawyers. She also explained that the government gave him all the rifles, pistols, and vehicle license plates found when his home was searched last week. She said that “It is inaccurate to claim that he held these items illegally.”

Moving on, the fourth round of negotiations concerning the Grand Ethiopian Renaissance Dam between Ethiopia, Egypt, and Sudan began on Monday the 18th in Addis. This round of negotiations mainly concerns finalizing guidelines and rules on the dam's first filling and annual operation. The last time the three countries met was in Egypt in October this year with no final agreement reached on the matter. On Tuesday the 19th, the talks ended without an agreement as well. Ethiopia, through the Ministry of Foreign Affairs, said that Egypt is to blame for the stalemate as the country erected a barrier to efforts of a common understanding, adding that Egypt has a colonial-era mentality that prejudices Ethiopia’s rights to use the Nile River. The Ministry concluded by saying that Ethiopia will continue to use the Nile to meet the needs of the present and future generations, with or without an agreement with Egypt and Sudan.

The disagreement between the three countries began over a decade ago when Ethiopia decided to construct a dam in the Nile River entirely within its borders. Despite the two countries’ protests, Ethiopia has built the dam, which will become fully operational soon.

The Council of Ministers convened on Wednesday, the 20th, to discuss and approve a new policy and draft laws. The new policy concerns legislation on the manufacturing industry. This policy prioritizes private investment and import substitution, among other matters. The three laws include an amendment to the expropriation law, a new bill on awards to exemplary individuals, and another draft law recognizing public holidays and vacations.

Next up, Ethiopian Airlines has struck a deal with international bank Citi for a loan of four hundred and fifty million US dollars for the purchase of five aircraft from US aircraft manufacturer Boeing The US Export-Import Bank has entered the deal as guarantor. The loan has been secured against the value of the planes, which means that if Ethiopian Airlines fails to pay on time, Citi will be able to seize the planes. The aircrafts are set to be manufactured in the state of Washington and will be delivered in December.

If you’re wondering why Citi gave a loan with a guarantor and security, it might be because Ethiopia is on the verge of defaulting on its external loans. The country is currently in debt relief talks under the G20 Common Framework, while some creditors have agreed to suspend payment of loans. The Ministry of Finance, which signed the bulk of these failed loans, said that it wants to treat all creditors equally and fairly and cordially invited creditors who haven’t entered debt suspension agreements to partake in such deals.

Things are not looking good in regards to Ethiopia’s external debt as the World Bank released its International Debt Report for twenty twenty-three. According to the document. Ethiopia’s external loan has reached almost twenty-nine billion US dollars. The report also says that the debt payment will increase. The document states that Ethiopia’s major lenders are the World Bank, the Africa Development Bank, and China. For context, back in twenty ten, Ethiopia’s total external debt was significantly less, it stood at a little over seven billion US dollars.

Speaking of loans and credit, international finance review firm Finch has downgraded Ethiopia’s creditworthiness again, the second time in a few months, indicating Ethiopia’s limited ability to pay back loans. The lower rating will have an adverse effect on the trust that international lenders, investors, and financial institutions will have in Ethiopia regarding loans.

But let’s go to the World Bank for a minute since its board approved a three hundred and fifty million US dollar loan on Wednesday the 13th for the Digital ID program. Ethiopia remains one of the last countries in the world without a national ID system. The World Bank said that at least ninety million of the country’s hundred and twenty-five million people will have access to this digital ID service. However, reports said that only three point five million people have registered. The project will use the loan to develop an information communication technology infrastructure and will also help establish a Personal Data Protection Commission.

Spain’s ambassador Manuel Salazar was in Ethiopia for a work trip. He sat down with deputy PM and Minister of Foreign Affairs Demeke Mekonnen; Ambassador Salazar mentioned that bilateral relations in various sectors have been enhanced over the past few years. After the meeting, Demeke said that Spain was interested in bettering relations and proposed a strategic partnership, adding that Ethiopia recognized Spain’s consistent foreign policy towards Ethiopia during difficult times.

And to close this edition, Akinwumi Adesina, the African Development Bank’s president, announced on Wednesday the 20th that the Bank will pull out its international staff from Ethiopia almost two months after security forces assaulted and detained its employees. Even though the bank reported the incident to authorities and was reassured that perpetrators would be held liable, there was no progress. The bank found this out when it sent a high-level delegation to Ethiopia last month to talk about the issue with senior government officials. Following this trip, the president said that the assessment from the bank’s delegation indicates that the situation is still not yet resolved in a satisfactory manner, The government is yet to reveal the results of the investigation.

Aaand that's it for this week!

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