President Sahle-Work Zewde’s State Visit to Algeria

Ethiopia at IDA20 Summit

A high-level Ethiopian delegation discusses trade ties with Djibouti and Somaliland administration 

Eritrea and Somalia paving paths for cooperation

News in Brief

Africa and the African Union

The 41st Ordinary Session of the Executive Council of the African Union Member States is being held in Lusaka Zambia under the theme of the year: “Building resilience in nutrition on the African continent: Accelerate the Human Capital, Social and Economic Development”.

The African Union celebrates the 2021 Africa Integration Forum and commemoration of African Integration Day on 7-9 July 2022. African Integration Day was celebrated with the theme “Deepening African Economic Integration through Industrialization in the era of De-globalization”.

The Intergovernmental Authority on Development (IGAD) announced on Thursday (July 14) that former Ethiopian President Dr. Mulatu Teshome would lead its election observer mission to the Republic of Kenya. IGAD will deploy an election observer mission to the Republic of Kenya to observe the general election scheduled for 09 August 2022.

Ethiopia

President Sahle-work Zewde paid a state visit to Algeria from 5-7 July 2022 upon the invitation of Abdelmadjid Tebboune, President of the People’s Democratic Republic of Algeria. The state visit was followed by President Sahle-Work’s attendance of Algeria’s 60th anniversary of independence, as a guest of honor. (See article)

African leaders convened in Dakar, Senegal, on Thursday (July 07), to advocate for a strong start to the implementation of the twentieth funding cycle (IDA20) of the International Development Association, which is centered on an effective and resilient recovery for Africa. Hosted by the president of Senegal, Macky Sall, several Heads of State and Government from across the continent attended the summit. Ethiopia has sent a delegation led by Deputy Prime Minister and Foreign Minister Demeke Mekonen acknowledging IDA’s continued role in being the most critical development partner of the continent.  (See article)

Ethiopia has begun repatriating about 12,000 Ethiopians from African and Middle East countries on Thursday (July 14). The Government will collaborate with the International Organization of Migration (IOM) to repatriate those Ethiopians found in dire conditions in Tanzania, Malawi, Zambia, Zimbabwe, Djibouti, Sudan, Yemen and Oman. The Spokesperson of the Ministry of Foreign Affairs, Ambassador Meles Alem, revealed the information during the delivery of the Ministry’s biweekly press briefing.

The peace alternative committee, formed to resolve the problem in the northern part of Ethiopia through peaceful talks announced it has started work. As the government of Ethiopia has recently pledged to give a chance for peace talks to end the conflict in the northern part of the country, the peace committee is lead by Demeke Mekonnen, Deputy Prime Minister and Minister of Foreign Affairs.

The Inter-Ministerial Task Force discussed on Wednesday (July 13) updates on the activities it has undertaken to investigate human rights violations by the TPLF forces during its occupation of the Amhara and Afar regions and accountability against culprits. The Task Force was established to investigate the human rights violations committed in the Amhara, Afar, and Tigray regions and ensure accountability.

Although the Government of Ethiopia has opted for peaceful options to solve conflicts in the northern parts of the country, the terrorist group TPLF is making preparations for another devastating war, according to Government Communication Service. Briefing journalists today, Government Communication Service State Minister Kebede Desisa said the government is committed to solving conflicts, particularly the conflict in the northern part of the country, peacefully. However, the terrorist TPLF has been making preparations for another devastating war, preferring war to peaceful options, ENA quoted Kebede as saying.

Ethiopia has obtained a record-hit 1.4 billion USD from coffee export during the country’s 2021/22 fiscal year that was concluded on the 7th of July. The country has set an unprecedented record in terms of volume and revenue since it started exporting coffee to the world market, according to Ethiopian Coffee and Tea Authority. Accordingly, it has earned 1.4 billion USD by exporting 300,000 tons of coffee to the international market during the just concluded Ethiopia fiscal year.

Eritrea

President of Somalia Hassan S. Mohamud paid Eritrea a four-day state Official State visit since Saturday (July 9). The President was cordially welcomed by President Isaias Afwerki of the State of Eritrea at the Asmara International Airport. During his stay, President Hassan S. Mohamud, visited the Somali Army Brigade trained in Eritrea where he witnessed a military parade and congratulated them for completing their military training. The President, accompanied by his Eritrean host President Isaias Afwerki, also toured sites of development projects in Eritrea. The two countries inked MoU aimed at cementing bilateral ties and regional cooperation. (See article)

Djibouti

A High-level Ethiopian delegation discussed trade ties with Djibouti and Somaliland administration last week. Djibouti and the Somaliland administration had concerns over the increase in the price of Ethiopian Agricultural products. (See article)

The Ministry of Agriculture of Ethiopia has signed Memorandum of Understanding (MoU) with the Ministry of Agriculture of Djibouti to operationalize the Doraleh multipurpose port. “The port serves as a resting terminal for export animals originating from Ethiopia,” Ethiopia’s Minister of Agriculture, Oumer Hussien, tweeted. The agreement will pave the way for Ethiopia, as a leading country in livestock population, to effectively use its resources by exporting live animals through proper quarantine and inspection services.

Kenya

Kenya’s President Uhuru Kenyatta is hosting two visiting presidents on diverse agenda. As he received the Guinea Bissau leader Umaro Sissoco Embaló at State House on Friday (July 15), Somali President Hassan Sheikh Mohamud arrived at the Jomo Kenyatta International Airport (JKIA), his first official visit to Kenya since he was elected in May.

President Kenyatta received the National Order of the Republic of Burundi, the highest award of honor in the East African nation at State House, Nairobi on Friday (8 July). The citation stated that President Kenyatta was honored for the outstanding role he played in promoting peace, security, and stability in Burundi during the political crisis in 2015.

Somalia

Somalia’s President Hassan Sheikh Mohamud has met with parents of troops training in Eritrea and promised they will soon return home to fight against the Islamist militant group al-Shabab. Somalia sent thousands of soldiers to train in Eritrea, sparking a series of protests over the last year from parents who were unable to communicate with them. Mohamud met with the troops on a visit to Eritrea this week, where he agreed to improve bilateral relations.

The African Union Transition Mission in Somalia, (ATMIS) said on Thursday (July 14) that it has deployed some 160 police officers from Nigeria to support stabilization efforts in the country.

South Sudan

The Republic of South Sudan celebrates the 11th National Independence Day of the Republic of South Sudan on Saturday (July 9). President of South Sudan Salva Kiir Miyardit delivered remarks concerning Independence Day. He ordered the suspension of all dredging-related activities in the country until evidence-based studies are carried out on their impact on surrounding communities and the ecosystems they rely on.

Sudan

The Troika and European Union on Wednesday (July 13) called for talks between the political forces and the component military in Sudan to define the role and responsibilities of the army leaders after the decision to withdraw from politics, it is reported.  On July 4, the head of the Sovereign Council Abdel Fattah al-Burhan said they decided to not participate in the dialogue process or the transitional government. However, he said they would form a higher military body to deal with security and defense issues with some additional powers in related fields. In a joint statement on Wednesday, the international supporters of democratic transition, the Troika, and the European Union took note of Fattah al-Burhan’s announcement to withdraw from the dialogue process.

President Sahle-Work Zewde’s State Visit to Algeria

President Sahle-work Zewde paid a state visit to Algeria from 5 to 7 July 2022 upon the invitation of Abdelmadjid Tebboune, President of the People’s Democratic Republic of Algeria. The state visit was followed by President Sahle-Work’s attendance of Algeria’s 60th anniversary of independence, as a guest of honor. Among invitees were the Presidents of the Democratic Republic of Congo, the Republic of Niger, the Republic of Tunisia, Saharawi Arab Democratic Republic, and the State of Palestine as well as other dignitaries including Moussa Faki Mahamat, Chairperson of the African Union Commission. President Sahle-Work had also a bilateral discussion with her counterpart followed by a visit to the industrial city of Oran, where she also presided over the closing ceremony of the Mediterranean Games accompanied by Aymen Benabderrahmane, Prime Minister of the People’s Democratic Republic of Algeria.

Algeria and Ethiopia enjoyed an excellent bilateral relationship since the independence of Algeria. The discussions between the two Heads of State were conducted based on the excellent relations focusing on upgrading the relations to a mutually beneficial higher level to the benefit of both countries and their people. Considering the level of political commitment from both sides it was agreed that the volume of trade between the two countries has to dramatically increase. In connection with this, the Algerian side has decided that an Algerian delegation led by the Minister of Trade will pay a visit to Ethiopia to examine trading prospects. This would also be followed by an air link between Addis and Algiers that would further expedite connections between Ethiopia and Algeria as well as the continent. Traveling from one part of the continent to another requires transits, which is identified as a shortcoming. In addition, preparations were already underway for the Ethio-Algerian 5th Joint Ministerial Commission to take place in September 2022. 

The two sides also exchanged views on regional matters pertinent to continental and international peace and security. An agreement was reached to swap support on issues of common concern as well as those affecting one or the other. Besides, current affairs affecting the continent as well as international political economy were also discussed, including a common understanding to revamp regional and continental organizations notably the African Union. A need to enhance the values put in place by the forefathers of the AU on Pan-Africanism was also seen as necessary to usher in a common position on issues of common interest. 

At the end of the bilateral discussion, the two leaders gave a press briefing and noted that the bilateral relationship needs to be up to the expectations of the people of the two countries. The state visit was marked by the long-standing relations the two countries enjoyed and it is expected that the relations will be transformed soon.  

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Ethiopia at IDA20 Summit

African leaders convened in Dakar, Senegal, on July 7, 2022, to advocate for a strong start to the implementation of the twentieth funding cycle (IDA20) of the International Development Association, which is centered on an effective and resilient recovery for Africa. Hosted by the president of Senegal, Macky Sall, several Heads of State and Government from across the continent attended the summit.

The Leaders noted that the continent is experiencing reversals of development gains triggered by the COVID-19 pandemic, climate change, food insecurity, conflict in the region, and the war in Ukraine. The leaders reaffirmed their commitment to seize significant opportunities to address various crises and guide their economies toward transformational paths in collaboration with the International Development Association of the World Bank (IDA). 

Deputy Prime Minister Demeke Mekonnen’s comprehensive remarks

Ethiopia sent a delegation led by Deputy Prime Minister and Foreign Minister Demeke Mekonen acknowledging IDA’s continued role in being the most critical development partner of the continent. In his remarks, Demeke acknowledged that the World Bank has consistently provided budget support in addition to analytical and advisory assistance in key reform areas to Ethiopia’s ambitious home-grown economic reform.

He indicated that the reform initiatives made a noticeable difference because they had undoubtedly strengthened Ethiopia’s economy’s resilience in the face of multiple shocks over a couple of years, such as the desert locust, the Covid-19 pandemic and its lingering effects, the recent conflict in the north and its national-level repercussions, the severe drought, and the global commodities crisis brought on by the Ukraine-Russia war.

Although Ethiopia’s economy has proven to be resilient, Demeke underlined that the combined effects of these back-to-back crises are causing serious strains that have an impact not only on the socio-economic landscape but also on the stability and security of the region. “Major and immediate recovery measures are needed to ensure that hard-earned development gains are not reversed and the well-being of our population and stability of our nation are not compromised,” he urged.  

He urged leveraging IDA 20 support in three key areas to address these challenges and opportunities, paying particular attention to Ethiopia and Africa as a whole.

According to Demeke, prioritizing a sustained recovery and a better development path should be the first concern of IDA critical support. The Deputy Prime Minister implied that sustained recovery goes beyond vaccines and emergency assistance to address crucial issues like confining inflation, dealing with debt issues, increasing local food production, addressing rising poverty and inequality through social safety nets, and improving job opportunities for young people.

In this regard, he called for stepping up support for Ethiopia’s adaptable safety net programs to boost agricultural productivity through intra-regional value chains. Given that Ethiopia’s budget largely aligns with priorities that benefit the poor, he urged the World Bank to continue supporting the country for service delivery in the sectors of health and education. Demeke also said that while the government of Ethiopia is committed to reducing non-concessional borrowing by implementing strict debt management and budget execution, it welcomes any debt profiling from lenders.

Promoting structural and economic transformation using infrastructure as a driver of inclusive growth and creation is the second priority area put forth by the Deputy Prime Minister. In light of the challenges presented by population growth and urbanization rates, Demeke emphasized the need to increase investment in digital connectivity, and energy access, including renewable energy, transportation, trade, and manufacturing. “IDA20 should complement government on flagship infrastructural projects” he emphasized.

Since economic transformation cannot be realized without increasing the participation in trade and regional integration, Demeke further called for IDA20 financing to develop a regional market through transport corridors, trade facilitation, and cross-border energy trade. 

The Deputy Prime Minister and Foreign Minister also explained Ethiopia’s ongoing commitment to reforms that support the private sector, highlighting the bold measures the administration has put in place in the growth-enabling industries of telecom, logistics, and energy. In this regard, he asserted that IDA20 financing is necessary to carry out ambitious measures for economic revival by increasing the contribution of the private sector. 

The final area of priority that Demeke implied focused on the challenges associated with the climate agenda and the energy transition. He reaffirmed Ethiopia’s pledge to reduce greenhouse gas emissions by 64% by 2030. “Africa will continue to carry its fair share of commitments to climate goals; however, it is critical that this continent be given much-needed additional support in addressing climate change, considering our limited space”   

Last but not least, Demeke emphasized that Ethiopia is moving forward with a peace process and addressing drivers of fragility, and significant financing is needed for post-conflict recovery. The Deputy Prime Minister concluded his remarks by expressing his confidence that the implementation of IDA20 will contribute to a robust and resilient recovery for Africa. He also underscored Ethiopia’s government’s unwavering commitment to the Dakar call for action.

Sideline Engagements

The Deputy prime Minister and Foreign Minister had a meeting with Axel van Trotsenburg, the managing director of operations for the World Bank, in Dakar, Senegal, on the margins of the IDA 20 summit.

Demeke briefed the director on the current developments and the government’s commitment to peaceful settlement of conflicts despite provocations.  He highlighted the major confidence-building measures taken by the government to resolve the conflict in North Ethiopia, including the smooth delivery of humanitarian aid, the appointment of a fully mandated negotiation team, and the establishment of Inter-ministerial taskforce to hold perpetrators of violation of human rights accountable. 

The World Bank Managing Director expressed the organization’s confidence in the peace efforts of the Ethiopian Government further pledging to support the economic and societal reform process that the Government will undertake in the next three years.

He specifically mentioned the WB’s interest to support Ethiopia’s efforts in rebuilding infrastructure and transforming agriculture, as well as regional integration endeavors.

He further expressed his gratitude for the World Bank Group, more particularly in the light of recent financial commitments and called for the speedy implementation of the project on Response, Recovery and Resilience for conflict-affected communities.

Demeke finally invited the WB Managing Director to visit Ethiopia and expressed well wishes to Victoria Kwakwa, the newly appointed World Bank Vice President for Eastern and Southern Africa who was also in attendance.

IDA’s Background

One of the World Bank Group members, the International Development Association (IDA), was founded on September 24, 1960, with initial funding of $912.7 million and 15 signatory nations. By offering grants, loans with no or low-interest rates, and policy advice for initiatives that foster economic growth, build resilience and enhance the lives of the poor around the world. IDA seeks to reduce poverty.

IDA, which now has 174 members, is the main provider of concessional loans to 74 of the world’s poorest nations. 37 nations have graduated from IDA thus far. Total IDA credits and grants since its founding have reached $458 billion, averaging $29.4 billion over the previous three years (FY19-FY21).

In its most recent commitment, the World Bank promised to provide $93.5 billion for developing nations, of which $66 billion will go to 39 African nations, of which $5.7 billion will be allotted to Ethiopia.

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A high-level Ethiopian delegation discusses trade ties with Djibouti and Somaliland administration 

Djibouti is a geostrategic country that sits on the Bab-el-Mandeb Strait and provides port services to Ethiopia. Ethiopia enjoys an excellent relationship with its neighbor Djibouti. Ethiopia has been utilizing Djibouti seaports for its maritime Import and Export activities for a long time. While Djibouti relies on the import of agricultural products (vegetable, fruit, etc.), Ethiopia for its part use the Djibouti seaport for import and export. This exchange of products and services was mainly the defining feature of the relationship the two countries enjoyed over the past many decades. 

Due to the changing conditions of time, the price of agricultural products in Ethiopia was heavily impacted by both domestic and global pressures causing a spike in prices in the markets of Djibouti and thereby bringing about widespread public dissatisfaction. Thus, the government of Ethiopia has intervened to find a solution to the problem. And it’s from this standpoint of view that last week a high-level government delegation was dispatched to Djibouti and Somaliland, respectively, to address problems of trade.  

The spirit was to strengthen the already existing excellent bilateral relationships that were in place in the past decades and to iron out outstanding matters of mutual interest. In this regard, a common understanding has been reached between the senior delegation of the government of Ethiopia and the government of Djibouti to resume exports. It’s to be recalled that the price of these export items was fixed decades ago and does not reflect the current market value of these products.  

Although this temporary price increase created hiccups in Djibouti, nonetheless the long years of excellent relationships between the two countries called for an immediate solution to be reached while discussions continue until a durable solution is reached.  

Somaliland 

Ethiopia enjoyed a strong trade, security, and people-to-people partnership in the last three decades. The establishment of regular flights by Ethiopian Airlines, border security cooperation between Ethiopia Somali Regional State and Somaliland, the flow of agricultural products from Ethiopia to Somaliland, the aspiration of Ethiopia to utilize Berbera seaport, and the presence of Ethiopia Consulate General Office in Hargeisa are all but few areas of cooperation. 

Like the case of Djibouti, there was an equal concern by the Somaliland administration and its people on the increase in the price of Ethiopian Agricultural products. 

However, last week a high-level delegation of senior officials of Ethiopia was dispatched to Hargeisa aimed to address the common issues of exports of agricultural products. Following deliberations with the Somaliland administration, a common understanding was reached, and export trade to Somaliland has resumed while negotiation will continue. 

It is to be recalled that the export price of these items was fixed decades ago and fails to reflect the current market prices. For this, a joint committee of both sides will study the market to table its findings for a decision.

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Eritrea and Somalia paving paths for cooperation

Eritrea and Somalia inked Memorandum of Understanding (MoU) aimed at cementing bilateral ties between the two countries and regional cooperation. Last week, from July 09-12, the President of the Federal Republic of Somalia, Hassen Sheik Mohamoud paid a four-day working visit to the State of Eritrea following the invitation of the President of the State of Eritrea Isaias Afeworki. 

While in Eritrea, President Sheik Mohamoud of Somalia held extensive discussions on a range of bilateral issues of common interest between the two countries, inspected members of the Somalia National Army undertaking training in the country, and visited development projects.

According to a joint statement released following the conclusion of the four-day State visit of the President to Eritrea released on the 12th of July, “The visit underscored the historic fraternal ties and mutual solidarity between the peoples of Eritrea and Somalia.”

During his stay, and accompanied by President Isaias, President Hassan Sheikh toured development projects in the Southern and Red Sea Regions of Eritrea with a particular focus on water security and management, agriculture, dairy production, green energy, and infrastructural development, it is stated.

It is underlined jointly that President Isaias and President Hassan Sheikh held extensive, cordial discussions focusing on the situation of their countries, bilateral relations as well as regional matters.

The two countries signed a Memorandum of Understanding, which is mentioned, will further cement the bilateral ties between the two regional countries.

Based on the convergent views between the two sides, it is mentioned that the leaders agreed to bolster political, diplomatic, security, economic, social, and cultural cooperation between Eritrea and Somalia.

The MoU inked between the two countries stated it will enhance the relations between the two countries, particularly in a range of seven sectors. In detail, it is stated that it will, promote the relations between the two peoples including in their diaspora communities. It is also mentioned that the MoU, will strengthen political and diplomatic cooperation to protect and advance national interests. Broadening economic and social cooperation with emphasis on trade, investment, and water security, agriculture, fishery, health, and education, were also other areas included in the list.

The two countries also notified that they will, foster cultural, artistic, and sports activities as well as scientific and technological collaboration between themselves. Enhancing defense and security cooperation to safeguard peace, stability, and security, has also been agreed upon between the two countries. They also agreed in the MoU that the two regional countries will, endeavor jointly to advance cordial relations, cooperation, and integration in the Horn of Africa.

Villa Somalia underlined that the visit highlighted President Mohamoud’s strong commitment to advancing strategic relations based on mutually beneficial regional cooperation driven by his vision of “Somalia at peace with itself, its neighbors and the world.”

The joint statement, at the conclusion, noted, “on behalf of the people and Government of Eritrea, President Isaias expressed deep gratitude to his brother President Hassan Sheikh for his timely and important visit. President Hassan thanked the people and Government of Eritrea and his brother President Isaias for their warm fraternal welcome and brotherly hospitality.”

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