ETHIOPIA: Conflict Claims over 30 Lives & more – 31st Dec 2024

Salaam salaam from BA! This is the Rorshok Ethiopia Update from the 31st of December twenty twenty-four. A quick summary of what's going down in Ethiopia.

There was tragic news in the eastern parts of the country, with a clash in the bordering areas of Ethiopia and Somaliland claiming over thirty lives. The fatal conflict took place last Wednesday the 25th. Witnesses said the conflict was between two subclans, both on either side of the border, at odds for a long while over land disputes.

Before efforts to resolve the conflict peacefully could materialize, violence erupted. Both the Ethiopian and Somaliland governments intervened, reaching an agreement on Friday the 27th to end hostilities and to settle the dispute through peaceful and sustainable means.

More news from neighbors, as Gideon Timotewos, the Minister of Foreign Affairs, paid Ismail Omar Guelleh, Djibouti’s president, a visit on Sunday the 29th. They talked about strengthening bilateral relations and discussed various issues of common interest to the two countries. Minister Gideon also met and discussed various matters with his counterpart Mahmoud Ali Youssouf. He went to the Dorale port and terminal to take a look at import-export operations there and he discussed a possible fertilizer import deal with the port’s executives.

Next up, in an update to a previous story, the parliament is deliberating the draft property tax bill, which will reintroduce tax on property. The government is in the process of levying this tax to broaden the tax base and increase revenue. According to the draft, the tax will increase annually.

Even though people don’t expect this draft to be shot down or modified, members of parliament are still voicing their concern over the government’s attempt to increase taxes. They said it wouldn’t be wise to levy this tax on top of other increased tax rates as well as inflation, adding that it will significantly burden low-income households. They also criticized how the bill’s proponents mentioned South Africa and Kenya as examples of countries with a broad tax base, without mentioning how citizens in those countries earn much more than Ethiopians.

Executive representatives, however, said the bill will ensure fairness in the tax collection system.

This is all part of the government’s plan to raise more money and the shakedown is happening in several parts of the country. One of them is the Harar region’s capital, Harar City, in eastern Ethiopia. Commercial bank branches in the city told media outlets that the government shut down the branches because they’d refused to contribute towards the corridor development project.

However, on Thursday the 26th, the region’s development bureau issued a statement denying these allegations, adding that the branches were forced to close because they were operating inside unfinished buildings, which is against the law. The bureau added that business establishments that are law-abiding are open.

Meanwhile, the Ethiopian Bankers Association denied the bureau’s allegations, even specifying the number of the branches that were asked to contribute.

In the capital, Addis, the employees of the Document Registration and Authentication Service are fed up. They told members of the House of People’s Representatives Legal and Justice Affairs standing committee that individuals saying that they’re law enforcement officers are detaining them without a warrant. They requested members of the standing committee to pressure law enforcement officers to stop unlawfully arresting the employees of the Service. They added on their grievances, saying that they’re being paid very low wages that are not on par with the demanding nature of the job.

The Service is administered under the auspices of the Ministry of Justice which increased the wages of all the other offices it administers except the Service, which put salt on the employees’ wounds.

Speaking of the Ministry of Justice, its organized and trans-border crime regional branch charged eighty-one individuals with leading and participating in terrorist activities, saying they were members of Al-Shabab, a terrorist organization. The Federal High Court found these individuals guilty after questioning over fifty witnesses and examining almost four hundred pages of evidence.

The charged and convicted were sentenced to prison from twelve to twenty years, depending on their involvement. They had attempted, mostly unsuccessful, terrorist attacks across Ethiopia at various times.

At an annual real estate and housing expo held on Friday the 27th, participants said seventy-four percent of all houses built in the country are sub-standard and are not fit for living. A government official who attended the expo said there are plans to build over four million new homes in the next ten years with the private sector building a significant eighty percent of those homes. He also said the government plans on compelling private builders to price the houses reasonably so that middle-income households can afford them. He added that the government will put in place mechanisms to resolve challenges that real estate developers are facing, including providing access to finance and increasing the raw materials supply.

On that note about government regulation, the Ministry of Trade and Regional Integration revealed that it had taken measures against gas retailers engaging in illegal activities. The Ministry said in a social media post that measures have been taken against thirty-four retailers who were hoarding, providing misleading reports, and selling gas in cash. Recall that payment for gas purchases can only be made using digital payment solutions.

The Ministry also announced that it had intercepted almost four hundred thousand liters of gas transported illegally. The Ministry admitted that there were long queues at gas stations but denied there being any shortages.

In business news, BYD, the Chinese Electric Vehicle (or EV) manufacturer, officially entered the Ethiopian market via a partnership with Moenco, an auto distributor. BYD EVs are common sight in Addis and its surroundings, but third-party dealers have been importing them so far without the official backing of BYD from countries such as the United Arab Emirates.

However, buyers would probably want to buy from Moenco from now on because they offer battery warranties for up to eight years as well as vehicle warranties for up to six years. They are also offering a broader selection with five models, including the popular Seagull. It also opened a showroom designated for BYD electric vehicles. The auto distributor represents over twenty brands, including Toyota, and has increased its tally of reputable partners in the auto industry.

The government has welcomed this development as it wants more EVs on the roads.

Now, some updates on the National Palace’s renovation. The federal government, with the support of the French government, renovated the massive estate of Emperor Haile Selassie I, located in the heart of Addis. As part of the renovation, the government built a new display for the Emperor and his officias’ luxurious vintage vehicles collection. Aside from polishing the estate, a restaurant was also built nearby. The palace was officially opened to the public this week.

On Monday the 30th, the first batch of visitors, top government officials, went to the palace with President Taye Atske-Selassie delivering an inauguration speech praising the initiative.

For our last story of the year, let’s talk about Christmas in Ethiopia. Unlike most other countries, Ethiopians celebrate the birth of Jesus Christ on the 7th of January because most Christians in the country are of the Orthodox Tewahedo Church and they are preparing for the holiday. Probably the best place to be on Christmas is the rock-hewn Church of Lalibela in the Amhara region, in north-central Ethiopia. Lalibela has suffered greatly because its main revenue stream, tourism, has dried up due to COVID and protracted conflicts.

However, officials are optimistic that this year things will be different. They’re expecting over a million locals and over a thousand expats at Lalibela on Christmas day. Last year, they projected for two million but only half a million showed up, tempering their expectations for this year. They have warned service providers against unfair price increases on flights, accommodation, among others.

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

Before leaving we want to wish you a happy and exciting twenty twenty-five! Thank you for sticking with us, sharing the podcast, and being such an amazing part of our community. We’ll be here as long as you’re enjoying the episodes, so if you have any thoughts, ideas, or suggestions on how we can get better, don’t hesitate to reach out—shoot us an email at info@rorshok.com. We’d love to hear from you!

Ciao!