ETHIOPIA: Somaliland Deal & more – 11th Apr 2024

Salaam salaam from BA! This is the Rorshok Ethiopia Update from the 11th of April twenty twenty-four. A quick summary of what's going down in Ethiopia.

Somalia expelled Ethiopia’s ambassador and recalled its ambassador to Ethiopia on Thursday the 4th. The Somali Ministry of Foreign Affairs and International Cooperation released a statement saying that the country has decided to take these measures to safeguard its sovereignty, unity, independence, and territorial integrity. In addition, the ministry said it had decided that it would close Ethiopian consulates in the autonomous regions Somaliland and Puntland soon. Relations between Ethiopia and Somalia were strained severely after Ethiopia and Somaliland, which Somalia claims as its own, signed a memorandum of understanding that will allow Ethiopia access to the sea via Somaliland in exchange for recognizing it as a state as well as giving it stakes in profitable Ethiopian public companies.

Up next, the news of the death of a prominent politician caused controversy. Bate Urgessa of the opposition Oromo Liberation Front (or OLF) party was shot dead on Tuesday the 9th at a hotel in Meki city, in the East Shoa zone of the Oromia region. His party confirmed his death and condemned the murder. The OLF didn’t delve into details but only called for independent investigations and on Wednesday the 10th the Ethiopian Human Rights Commission echoed the call.

Remember that Bate had been under police custody since the 22nd of February and was released recently. Bate was arrested following accusations that he had conspired with two militant groups, Fano and the Oromo Liberation Army, to incite unrest in the capital, Addis Ababa.

The Oromia regional government and the US Senate also condemned the murder. On Thursday the 11th, the regional government said an investigation will be conducted and results will be announced to the public.

The government also said that despite differences in political opinion, it was not involved in the murder of Bate in any way. It added that certain entities are using the incident for political gain, involving the government in the murder. The US also weighed in on the matter through Ben Cardin, its Chair of the Senate Foreign Relations Committee, who expressed condolences and called for an independent international inquiry to investigate the death.

The federal government, via its minister of government communication services, said that the Ethiopian National Defense Force will be responsible for safeguarding peace in adjoining areas of the Tigray and Amhara regions. This comes after reports that there have seen rising tension and episodes of violence in these areas, parts of which both regions claim as their own. The Minister said that the National Defense Force will be present in bordering areas until the dispute between the two regions is resolved through a referendum, which both parties are yet to officially consent to.

In other news, The Ethiopian Human Rights Commission said this week that it has been receiving intel that law enforcement officers dressed in civilian attire are arresting individuals. The Commission said the reasons for the detentions haven't been made clear, which is why it's concerned.

It's also been circulating on social media that some detained individuals have negotiated their release after payment. Others said they'd been arrested after officers searched their phones.

The Addis Ababa Police Commission said that perhaps these people were detained because they were suspected of certain crimes and that family members of detainees are free to communicate with officers of the respective stations, and can also reach out to the Commission.

On Saturday the 6th, during a forum of the Federal Courts Council, The Federal Supreme Court’s IT department head announced that some institutions are developing various software that will aid in litigation, including the ‘e-court’ software. The court has commissioned the Information Network Security Agency to build the e-court system for over three hundred million birr or almost six million US dollars. The IT department head also said that Ethio Telecom is building data web infrastructure for federal courts as part of the Supreme Court’s plan to completely digitize the works of the judiciary. During the forum, some participants asked the head what makes these current efforts to digitize different, as similar plans have failed in the past. He admitted that certain projects didn’t go as planned because of budgetary restrictions. However, he said that this time around things would be different because Ethio Telecom is building an integrated infrastructure.

Speaking of courts, at the same forum, representatives of regional and city courts said that the judges' low wages are affecting the work of the judiciary. Participants said that low salaries have made judges susceptible to corruption and many judges are leaving their posts to become attorneys as it has proved to be more lucrative. The Supreme Court’s President said that a three-year roadmap has been prepared to improve court services and ensure the judiciary’s independence and accountability.

Moving on to the economy, Ethiopia has a huge debt and is on the verge of defaulting unless someone bails it out through debt restructuring. Well, that someone is the International Monetary Fund or IMF. The Fund’s representatives were in the country late last month to talk about a bailout with Ethiopian authorities. The IMF spokesperson said representatives had a productive stay in Ethiopia in which substantial progress was made. She added that talks are set to continue at the World Bank and the IMF spring meetings that will be held in Washington this month.

But that’s not the only talk Ethiopia will be having with a prominent international organization. The Chief Negotiator of Ethiopia to the World Trade Organization (or WTO) announced that preparations are underway for a fifth round of talks scheduled for May this year with the organization. The country had halted efforts to join the organization for eight years from twenty twelve to twenty twenty, when attempts were made again. It coincided with the outbreak of COVID-19, disrupting the process. The chief negotiator, who is also the Minister of Trade and Regional Integration, said that documents to be presented to the WTO for accession are being finalized.

The Ethiopian Capital Market Authority issued a new directive determining fees for its services, including registration of securities, license applications, and capital market transactions. The Authority has already begun receiving license applications and issuing licenses.

Recall that on Saturday, the 30th of March, Deloitte, an international audit and consultancy firm, obtained the first license from the Authority, which made the company the first licensed securities investment advisor in Ethiopia.

On another note, Ethiopia's coffee is world-renowned for its taste and quality. It is also one of the most popular export items. But this steady income source may be threatened. The European Union has a new regulation in the works that will ban products from regions unable to prove that the products were produced with deforestation-free practices. Ethiopia's coffee is grown in forests, which makes it a less sustainable setting than monoculture plantations. Because of the new regulation, European buyers will be more cautious of importing Ethiopian coffee. Smallholder farmers, in turn, are concerned as they might lose a significant portion of their market.

And for our final update, we have some very sad news. Muluken Melesse, a pioneer in modern Ethiopian music, passed away on Tuesday the 9th in the US, where he has lived for the past few decades. Recall that he quit the music industry and became a spiritual singer. Muluken released numerous albums and singles throughout the seventies. His works have stood the test of time and many enjoy them to this day.

And that’s it for this week! Thanks for joining us!

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Ciao!