ETHIOPIA: Citizens in Danger Abroad & more – 26th Sep 2024

Salaam salaam from BA! This is the Rorshok Ethiopia Update from the 26th of September twenty twenty-four. A quick summary of what's going down in Ethiopia.

There is a significant number of Ethiopians all over the world. Some of them, in certain countries, are facing hardships because of political turmoil. For instance, because of Israel’s offensive against Hezbollah in Lebanon, the Ethiopian diaspora in eastern and southern Lebanon is at risk. On Wednesday the 25th, Ethiopia’s consulate general in Lebanon issued an urgent notice to Ethiopians in the south and east of the country asking them to have their names, passport and phone numbers registered through the phone numbers indicated in the notice so that they can receive timely assistance and guidance.

The Ethiopian diaspora in Egypt was also caught in a crossfire as tensions between Ethiopia and Egypt steadily escalated because Egypt was not happy with Ethiopia’s massive dam built on the Nile River — but within Ethiopia’s own territory. Egypt is concerned that this dam will decrease the water volume that reaches the country.

Ethiopians in Egypt said that they are being subjected to arbitrary arrests, violence, and harassment. Community leaders say they have reached out to representatives from the UN High Commissioner for Refugees and even though they’ve pledged to resolve these issues, the abuse that Ethiopians face in Egypt continues.

More on foreign matters as research firm Overseas Development Institute revealed a study indicating that the EU Deforestation Regulation, a bill yet to be approved, will have significant adverse impacts on the Ethiopian economy. The Regulation aims to reduce emissions associated with EU consumption and production of commodities, which means that coffee from Ethiopia grown on land with previous forest cover cannot be exported to EU member states, one of the biggest destinations for Ethiopia’s coffee exports. The research said that when the law takes effect later this year, it might pull down Ethiopia’s total exports by more than eighteen percent, decrease public revenue by over three percent, and reduce the country’s GDP by 0.6%.

Next, Zlatan Milisic, The World Food Program’s (or WFP) representative in Ethiopia, said in a recent press conference that his office is trying to talk aid organizations into resuming providing aid to Ethiopia. Recall that aid organizations such as the US Agency for International Development and the WFP itself temporarily halted their food and financial support, after allegations of aid diversion surfaced.

He also talked about how the WFP needs about three hundred and forty million US dollars by early twenty twenty-five; expressing concerns that if it doesn’t, millions of Ethiopians as well as refugees in Ethiopia will face food insecurity. He additionally announced that the WFP will introduce a new national strategy by mid-twenty twenty-five aiming to increase food supply and resist the adverse effects of droughts.

All around Addis and other parts of the country, gas stations have long queues because of shortages. An official from the Petroleum and Energy Authority told media outlets that there was a scarcity because the Djibouti depots, from which Ethiopia brings in imported oil, were working below capacity and requiring maintenance. He added that to keep up with demands, the Authority had come up with a plan to bring oil through the Berbera port in Somaliland. He also said that further government approval is required before acting on this plan.

The Addis Ababa city administration’s corridor development project, which took down about eight retail gas stations on the side of the main roads of the city, with plans to demolish an additional nine, also contributed to the shortages. He said that the city had to prepare replacement lots to have new retail stations built, that the city had been notified of the situation, and that the Authority was awaiting a response.

Speaking of gas imports, the government announced that it has decided to raise the capital of the Ethiopian Petroleum Supply Enterprise, though top-ranking workers from the enterprise said the decision hasn’t obtained final approval and that the rate of increase of capital is not known yet. The executive also revealed that they want to hike the capital of the enterprise to offset increased liabilities that the recent switch to a floating exchange rate will cause.

Media outlets also said that this decision as well as the Enterprise’s total debt have been notified to the International Monetary Fund. As it stands, the enterprise’s capital sits at two billion birr or eighteen million US dollars. The government has additionally decided to grant the Enterprise almost seven hundred million US dollars so that it can pay for the supplies of the past three months.

Another state-owned enterprise was in the news. On Thursday the 19th, Ethio Telecom announced its business plan for the current budget year. The company said it expects its revenue to grow by almost seventy-five percent, which means it wants to rake in over a hundred and sixty billion birr or about one and a half billion US dollars. The company plans to bring in this amount by diversifying its products and services, providing new enterprise solutions, and expanding international strategic partnerships. The company also outlined expansion projects, saying it plans to build almost a thousand and three hundred mobile sites and introduce 5G to fifteen additional cities.

Certain private businesses are also doing well. One of them is the private bank Zemen. On Tuesday the 17th, at a customers’ appreciation day, in which the bank thanked its business partners, it announced that in the previous fiscal year alone, it had managed to mobilize more than five hundred million US dollars in foreign currency. The bank’s top management has reported that the company has been consistently growing ever since it was established over fifteen years ago.

In other news, The Ministry of Trade and Regional Integration announced that it is rolling out standards that businesses selling in Sunday markets will have to comply with. An official from the Ministry said these standards will help ensure the quality of products provided to consumers in Sunday markets.

However, she explained that the standards will be applicable on only a few categories of products including fruits, vegetables, animal products and industrial goods. The standards include regulations on hygiene, selling locations, and pricing.

Another Ministry that issued new rules is the Ministry of Finance. It recently announced that imported goods will be subject to a new type of tax -the social welfare tax - at a three percent rate, aiming to broaden the tax base and use the revenue to maintain and expand public services.

On Friday the 20th, the Ministry issued a new directive exempting goods imported for military, police, security, education and health purposes from the tax. However, importers have to file documentation proving that the goods will be used in these sectors and that regardless of their purpose, importers are not exempt from paying the social welfare tax on imported automobiles.

And to close this edition, the finding of the True Cross of Jesus Christ is one of the major national holidays in Ethiopia. This year, it is celebrated on Thursday the 26th and Friday the 27th. On Thursday, when celebrations begin, Christians in Addis flock to Meskel Square, the biggest square in the capital city, and attend a ceremony. This event is a reproduction of the process of finding the True Cross, which was lost for about three hundred years until Queen and Saint Helena, an empress of the Roman Empire, burned a large bonfire and followed the smoke that led to the Cross. In Ethiopia, every year, mainly at the Meskel Square and in Churches and neighborhoods, bonfires are burned to commemorate how the True Cross was found.

Aaand that’s it for this week! Thank you for joining us!

Thanks for sticking around for this episode of the Rorshok Ethiopia update! If you’ve got questions, thoughts, or just want to say hi, reach out at info@rorshok.com. Don’t forget to hit subscribe on your favorite podcast app!

Ciao!