Each week, The Messenger summarizes key stories from Ethiopia tracking economic and political developments.
Bloomberg: Ethiopia Eyes Role in DP World-Managed Port in Somaliland
Nizar Manek, June 9
Ethiopia is in talks to acquire shares in a joint venture involving DP World Ltd. that will manage a port in northern Somalia, a Somaliland official said, a move that could give the fast-growing yet landlocked Horn of Africa economy its first stake in foreign docks, according to Bloomberg.
Somaliland, a territory that aspires to statehood, has agreed “in principle” to give Ethiopia a 19 percent share in the venture administering Berbera port, according to Foreign Minister Saad Ali Shire. Somaliland’s government and Dubai-based DP World, which has a 30-year concession to manage and develop the facility, will be the majority shareholders in Somaliland-registered DPW Berbera, he said in an interview.
Fana BC: Ethiopia Earns Only $100 Million from U.S. AGOA Exports in 3 Years
Amare Asrat, June 7
Ethiopia earned a disappointing $100 million US dollars from mainly exports to the United States via the African Growth Opportunity Act during the past three years, reported Fana Broadcasting Corporation.
Despite the preferential market access offered under the trade act, the country has been unable to take advantage effectively, according to the Ministry of Trade. Ethiopia exported textile, clothing as well as leather and leather products to the US, said Bogale Feleke, State Minister of Trade.
According to Bogale, lack of capacity of local manufactures, failure to meet the required standards for the market, failure to meet a delivery deadline and a shortage of foreign currency are some of the challenges for the poor performance.
Find the full story here: http://www.fanabc.com/english/index.php/news/item/9163-ethiopia-earns-over-$1mln-via-agoa.
The Reporter: PVH Textiles Exports Begin from Flagship Hawassa Industrial Park
Birhanu Fikade, June 5
The US-based Philip Van Heusen, which owns the Tommy Hilfiger and Calvin Klein brands, has started exports of T-shirts from the recently finished Hawassa Industrial Park in southern Ethiopia, according to The Reporter newspaper.
Six out of the 16 companies have started exports and ten companies have finalized installations to run production-testing procedures from the government’s flagship industrial park. The remaining 10 manufacturers are expected to begin exports by September.
The government hopes Hawassa will produce exports worth $1 billion annually and create 60,000 jobs. Despite the investments, high-quality raw materials for textiles are still proving hard to source domestically.
Find the full story here: http://www.thereporterethiopia.com/content/pvh-et-al-begin-export-hawassa-industrial-park.
Ethiopian News Agency: Ethiopia Increases Federal Budget 9.6 Percent to 321 Billion Birr
June 2: Ethiopia’s Council of Ministers approved a 9.6 percent increase to 321 billion birr ($14 billion) in the federal government’s budget on June 2, the Ethiopian News Agency said.
Regional governments will receive 117 billion birr and 115 billion will be for capital expenditure. Ethiopia’s parliament, which currently has only ruling coalition lawmakers and those allied with them, needs to approve the spending plan.