A Week in the Horn

A Week in the Horn | 24.03.2023

News in Brief

Government Rebukes US State Department statement bearing blank condemnations 

National Forum on Economic Diplomacy Deliberates Investment Challenges and Opportunities in Ethiopia 

Ethiopia Focused on the Full Implementation of the Pretoria Peace Agreement

The 41st Session of Committee of Experts (COE) and 55th Session of the Committee of Ministers (COM) was concluded adopting resolutions


Africa and the African Union

The 55th Session of the Conference of African Ministers of Finance, Planning and Economic Development (COM-2023) was held in hybrid in Addis Ababa from 15- 21 March, 2023 under the theme of “Fostering recovery and transformation in Africa to reduce inequalities and vulnerabilities”. The Conference is one of the premier forums on the continent for dialogue and exchanges of views among African ministers responsible for finance, planning and economic development and governors of central banks on issues pertinent to the development agenda of Africa.it is a statutory and the highest decision-making meeting of the UNECA.

The theme of the year “Fostering recovery and transformation in Africa to reduce inequalities and vulnerabilities” was echoed as pertinent and timely because the continent was challenged by Global crises most notably COVID-19 conflicts and climate change that have exacerbated levels of poverty and inequality. The theme also outlines the measures that need to be taken to ensure adequate access to financing, and push for a reform of the global financial architecture to unlock long-term financing, green jobs, pro-poor policies, tax mechanisms and curbing illicit financial flows so as to mitigate the recurrent shocks. (See Article)

In his opening remarks at the Ministerial council, Ahmed Shide, Finance Minister of the Federal Democratic Republic of Ethiopia, stressed that Africa has a lot to do to resolve its socio-economic challenges including the widening income inequalities and extreme poverty across the continent. The minister highlighted the multiple crisis that started to challenge the continent and down turned several years of socio-economic gains and indicated that addressing the multiple economic challenges of Africa requires a collaborative and concentrated effort, which should be people focused, sustainable and inclusive.

Ethiopia

Ethiopia’s parliament has delisted the TPLF as a terrorist group. The decision is expected to make a significant contribution to the full execution of the peace deal agreed last November between the Ethiopian Federal Government and TPLF. The measure was intended to “consolidate the agreement between the Ethiopian Federal Government and TPLF in Pretoria,” according to a House report.

Ethiopian Laureate Tewoldeberhan Gebre-Egziabher (PHD), who fought passionately for biodiversity and community rights, has passed away at 83. He was honoured with the Right Livelihood Award for his leadership in biosafety discussions. He served as Dean of the Faculty of Science and Keeper of the National Herbarium at the University of Addis Ababa before becoming President of the former Asmara University and Director of the Ethiopian Conservation Strategy Secretariat. He also played a key role in drafting the Organization of African Unity’s model legislation for local community rights, which is now used as the common basis for all African countries.

The Food and Agriculture Organization of the United Nations (FAO) welcomed a €25 million contribution from the Government of Germany to provide access to food and other basic goods and services while protecting and restoring productive livelihoods in drought-affected communities in Ethiopia, Kenya, Somalia and the Sudan.

Deputy Prime Minister and Foreign Minister H.E. Demeke Mekonnen conferred with the Minister of State for Development and Africa Rt. Hon. Andrew Mitchell, MP at his office on 21 March 2023. He assured Mr. Demeke of the continued support of the British Government towards the full implementation of the peace agreement and the rehabilitation and reconstruction efforts of the Federal Government in Northern Ethiopia.

The 55th Session of the ECA’s of the Conference of African Ministers of Finance, Planning, and Economic Development took place in Addis Ababa (March 20, 2023) over the week to discuss future directions and determine agenda items.

A national consultative forum aimed at addressing challenges in the investment sector and effectively combatting contraband trade was held on 20 March 2023. Ambassador Girma Birru, Macro Economic Advisor to the Prime Minister said, officials of regional states should work closely with the Federal Government to ameliorate the condition. Ministers, high-ranking federal government officials, presidents of regional states and other invited dignitaries participated in this multi-stakeholder consultative forum. Presentations on the challenges in investment & the predatory nature of illicit trade in smuggled goods.

Deputy Prime Minister & Foreign Minister Demeke Mekonnen conferred with Yemeni Foreign Minister Ahmed Awad bin Mubarak at office on 20 March 2023. Demeke Mekonnen emphasized the need to capitalize on the historical ties between the two countries, and H.E Mubarak assured Demeke of his government’s support in the resumption of formal engagements. He also promised to assist the Government of Ethiopia to expedite the voluntary repatriation of its nationals from Yemen.

The President of the Ethiopian Islamic Affairs Supreme Council Sheikh Ibrahim Toufa, has arrived in Djibouti (March 19, 2023) to participate in the opening ceremony of the Institute of Moderation and the Culture of Peace.

A national forum on economic diplomacy was held in Addis Ababa on 20 March 2023. The high-level consultative session was jointly organized by the Ministry of Foreign Affairs of the Federal Democratic Republic of Ethiopia and the Ethiopian Investment Commission to resolve challenges in the investment sector and to combat illicit trade commonly known as contraband. It was also aimed at leveraging the synergy between Foreign Direct Investment (FDI) and trade. The forum brought together, among others, ministers, other high ranking federal government officials, presidents of regional states, mayors of the two administrate cities, heads of regional investment and trade bureaux and many other invited stakeholders. The multi-stakeholder session chiefly has the goal of laying the foundation for a smooth and an improved investment inflow and the proliferation of legitimate trade and export promotion over time.

In an official statement dated 21 March 2023, the Ministry of Foreign Affairs of the Federal Democratic Republic of Ethiopia rebuked a statement issued by the US State Department on 20 March 2023 determining that certain alleged grave crimes were committed during the conflict in northern Ethiopia. Considering the Report of the Joint Investigation by the Ethiopian Human Rights Commission (EHRC) and the UN Office of the High Commissioner for Human Rights (UN-OHCHR), this statement does not contain new findings, the Ministry noted. The Government of Ethiopia does not accept the blanket condemnations contained in the statement and does not see any value in such a unilateral and adversarial approach. (See article).

The Council of Ministers endorsed the regulation which is drafted to revise the Establishment Regulation of the Ethiopian Railway Corporation. The draft regulation has increased the authorized capital and paid-up capital of the Corporation to Birr 221 billion and Birr 120 billion, respectively. Once gazetted, the regulation is expected to allow the Corporation to complete constructing infrastructure that is in the works. The Council also approved and referred a draft proclamation which is expected to strengthen the competitiveness and effectiveness of public enterprises to the House of Peoples’ Representatives. It is hoped that the draft bill will help the enterprises ameliorate their debt burden and enhance their social service burden without affecting their profitability. Bills that ratify the avoidance of double taxation agreements that Ethiopia has signed with Luxembourg and Switzerland have also been referred to the Parliament by the Council.

Djibouti

Speaker of the National Assembly of Djibouti Dileita Mohamed Dileita met with Qatari Ambassador to Djibouti Dr. Rashid bin Shafie Al Marri and discussed the bilateral cooperation relations between the two countries (23 March 2023).

Eritrea

Eritrean Foreign Minister Osman Saleh and his Russian counterpart Sergei Lavrov held discussions on bilateral, regional and global issues of mutual importance in Sochi, Russia on (22 March 2023).

Kenya

Kenya and Colombia have pledged to enhance bilateral cooperation in the coffee sector. Cooperatives and MSME Cabinet Secretary Simon Chelugui said “We plan to work closely with the world’s best coffee producers. It is our strong desire to benefit from what the world has to offer for the betterment of the farmers”. Chelugui added the government is working round the clock to ensure that coffee growing returns to profitability.

“Revenues reached 268.09 billion Kenyan shillings (approximately 2 billion euros) in 2022, up from 146.51 billion shillings in 2021, showing an 83% rise,” said the Ministry of Tourism. In 2022, 1.5 million visitors visited Kenya, a 70% increase from 2021. Almost 2 million visitors visited the East African country in 2019.

Barbados Chamber of Commerce and Industry (BCCI) and Kenya National Chamber of Commerce and Industry’s (KNCCI) held first virtual Dialogue Series, on the theme Demystifying the Barbados and Kenya Markets. The two parties noted forming partnerships, building bridges, and identifying challenges and opportunities are the keys to enhancing trade relations between Barbados and Kenya. They underscore people-to-people interaction is key to achieving and increasing trade between the two countries, deepening people-to-people interactions, as it is the foundation for generating all economic activity and in turn creates greater receptivity to the goods and products which they offer.

Israel is ready to help Kenya to meet its water needs. Israeli Ambassador to Kenya, Michael Lotem said as country, we made many mistakes and had our successes. We want to share our experience with Kenya in order to avoid our mistakes and to enhance Kenya’s success. The sub areas for cooperation are:  the treatment and recycling of sewage. With an abundance of research and development and innovative technologies, Israel can make a significant contribution in Kenya.

Kenya and the United Kingdom have agreed to partner to secure jobs and increase trade between the two countries. Both parties agreed to accelerate work to remove barriers affecting bilateral trade and investment, working with respective public and private sectors. The agreement ensures that all companies operating in Kenya, including British businesses, can continue to benefit from duty-free access to the UK market – saving exporters over Sh1.5 billion (£10m) every year in duties on products such as green beans and cut flowers. The agreement supports Kenya to grow its economy in a sustainable way, whilst providing UK businesses with increased trade opportunities. It secures jobs for Kenyans while enhancing Kenya’s global competitiveness, trade capabilities, and ability to attract investment.

U.S. and Kenya are to Hold in-Person Trade Talks in April. A U.S. delegation will meet with representatives in Kenya next month for the first negotiating round under the Strategic Trade and Investment Partnership. Assistant United States Trade Representative, Connie Hamilton, will lead the delegation of representatives from several other government agencies. The meeting will take place April 17-20 in Kenya. The goal of the Strategic Trade and investment Partnership is to increase investment; promote sustainable and inclusive economic growth; benefit workers, consumers, and businesses; and support African regional economic integration.

Kenya partners with Japan to implement biometric patient records system. Japan is working to help Kenya implement a biometric system for holding and managing patients’ medical records, and scale up a system with NEC technology for vaccine management. Key initiatives include systems utilizing biometrics for medical records management and vaccinations. The new partnership on the implementation of a biometric medical records system follows the trial of a biometrics-based vaccine management platform designed by NEC and its partners to cut infant mortality in Kenya and improve child healthcare. That trial appears to have been a success.

The African Airlines Association (AFRAA) has signed a Memorandum of Understanding (MoU) with the Kenya Association of Air Operators (KAAO) to provide mutual support to the sustainable development of the airline industry in Kenya as the country is represented by the two Associations. Under the framework of the collaboration, AFRAA and KAAO will work closely on areas of action for the mutual benefit of their membership and industry: Engagement of local authorities and stakeholders on air transport matters; Joint advocacy efforts on issues challenging the airline industry such as: taxes and charges, aviation policy, market restrictions, infrastructure and capacity building and Implementation of the roadmap of the African Air Transport Sustainability Steering Committee (ATSSC).

Somalia

Somalia president Hassan Sheikh Mohamud, lauded his Ugandan counterpart, President Yoweri Museveni, for the unwavering support in the fight against terrorism in the Horn of Africa. President Mohamud made the remarks on Sunday evening at the passing out of 2,900 trainees for the Somali National Army, who have successfully concluded their four-month special Basic Military Training at the Special Mission Training Centre in Butiaba, Uganda.

The Minister of Defense Abdulkadir Mohamed Nor, has revealed that 3,000 Al-Shabaab fighters were killed in the first phase of the current army operations (22 March 2023). The minister said 3,700 militants were injured in Hirshabelle and Galmudug states, where the militant faced a multi-front offensive involving US military airstrikes and local fighters.

Somalia’s President Hassan Sheikh Mohamud announced that the country would organise the next national elections by universal suffrage, a departure from an indirect voting system.

South Sudan

President Salva Kiir and First Vice President Dr. Riek Machar have both expressed a desire to resolve the controversy surrounding the sacking of Defense Minister Angelina Teny’s departure. Seeking a middle ground on behalf of IGAD, whose presidency is held by Sudan, the two leaders agreed that the answers to the deadlock will come from the provisions of the revitalized peace deal.

President Salva Kiir on Saturday promised citizens that the country is heading to “a free and fair” election in 2024, saying his government is committed to ending transitional periods which he blames for causing “problems” Speaking to thousands of citizens who came out to welcome him following his arrival from Juba to Western Bahr el Ghazal State’s capital Wau, Kiir told the people of Wau to prepare for elections saying the country should have a democratically elected government.

The Government of South Sudan on Tuesday restated its commitment to the Rome peace talks mediated by the Community Sant’Egidio. Speaking shortly after the reopening of peace talks between the government and hold-out groups in Rome, Italy, on Tuesday, Presidential Affairs Minister Dr. Barnaba Marial Benjamin said the government is fully committed to peaceful dialogue to restore lasting peace in the country.

The South Sudan health ministry is set to roll out the second round of a mass Covid-19 vaccination campaign targeting 1.8 million people across the country, a health official said. Addressing a press conference in Juba on Monday, Janet Michael, the Acting Director General for primary healthcare at the National Health Ministry, said they intend to inoculate those aged 18 and above.

South Sudan on final stretch to ratify AfCFTA to boost trade. The South Sudan National Strategy for the AfCFTA was validated last month, and it will be submitted to the ministry by the United Nations Economic Commission for Africa (UNECA). The national strategy is a policy document of the ministry of trade and industry that will guide the implementation of the free trade agreement. In preparation for implementing the agreement, the ministry has developed a national strategy to implement the AfCFTA agreement, focusing on exports and value addition.

Sudan

The Forces for Freedom and Change (FFC) have started discussions about the new prime minister, revealed a leader of the pro-democracy coalition on Monday. The new prime minister will be appointed on April 11, as it was greed by the signatories of the framework government on Sunday, March 19. Also, the transitional constitution is expected to be finalized and signed in the next few days after the completion of the final workshop on security reform scheduled for the end of March.

Sudan’s political factions have agreed to form a new transitional government on April 11, Khalid Omar Yousif, the spokesperson for the signatories to the political settlement, said on Sunday. The parties have agreed on a committee for drafting a new constitution that will include nine members of the civilian groups, one from the army and another from the powerful paramilitary Rapid Support Forces.

Sudan’s President of the Transitional Sovereign Council, Gen. Abdel Fattah al-Burhan said Tuesday the military will not take part in politics in the future. “We are establishing an army that will not participate in politics in the future,” al-Burhan said in a televised speech. “There is no military personnel staging a coup, it is the politicians who carry out coups,” the army chief said, without expounding. “The army should not have a political role,” al-Burhan said. “We are on the verge of a new phase that will be satisfactory to all.” The Head of Council vowed to restore stability in Sudan before elections. “We call on politicians to accept the other,” he added.

China calls for immediate, unconditional resumption of economic aid to Sudan and urged relevant parties to make efforts towards the lifting of sanctions. It is encouraged by the political will and spirit of consultation shown by relevant parties involved in the political process and supports all parties in staying on the Sudanese-led and Sudanese-owned political process and continuing the inclusive dialogue to expand consensus and find a development path suitable for the country.

The Commissioner of the Disarmament, Demobilization and Reintegration Commission, Major General Abdul Rahman Abdul Hamid Ibrahim, affirmed that Sudan’s entry into the Arms Trade Regulatory Treaty (ATT) provides security and stability in the region and the country. He noted that accession to the ATT can only take place with Parliament’s ratification, and that Sudan has begun working in preparation for reaching that stage. Rick Kind, the representative of the Executive Secretary of the Regional Center for Light Arms Control, affirmed the illegal arms trade threat to the region, and the ATT designed to control weapons. The Khartoum Declaration 2012 reinforces the control of small and light weapons, especially in western Sudan.


Government Rebukes US State Department statement bearing blank condemnations

US State Department has issued a statement on 20 March 2023 determining that certain grave crimes were committed during the conflict in northern Ethiopia. Considering the Report of the Joint Investigation by the Ethiopian Human Rights Commission (EHRC) and the UN Office of the High Commissioner for Human Rights (UN-OHCHR), this statement does not contain new findings, the refutation statement read.

The Government of Ethiopia does not accept the blanket condemnations contained in the statement and does not see any value in such a unilateral and adversarial approach.

The statement is selective as it unfairly apportions blame among different parties in the conflict. For no apparent reason, the statement appears to exonerate one party from certain allegations of human rights violations such as rape and other forms of sexual violence despite the clear and overwhelming evidence about its culpability.

The statement is untimely. It is coming shortly after the launching of national consultations on options for a transitional justice policy. One of the pillars of transitional justice policy is accountability. This foresees that there will be further investigations into allegations of the kinds of crimes the statement alleges. These investigations will consolidate those undertaken by the Inter-Ministerial Task-force implementing the recommendations of the EHRC-OHCHR Joint Investigation. It thus prejudices these national efforts to thoroughly investigate allegations, whoever is the culprit. 

The US statement is inflammatory. Whatever the intentions of the US State Department, this statement will be used to advance highly polarized campaigns pitting one community against others in the country. This partisan and divisive approach from the US is ill-advised. As Ethiopia is implementing the Peace Agreement, such apportioning of blame is unwarranted and undercuts the support of the US for an inclusive peace process in Ethiopia.

The visit of the US Secretary of State gave hope that the two countries are poised to mend their bilateral relations. The Government of Ethiopia hopes that despite the US’s statement, the frank discussions held and understanding reached during the Secretary of State’s visit to Ethiopia will help restore the strategic relations between Ethiopia and the United States.

The Government of Ethiopia will continue implementing all measures of accountability, including finalizing the nationwide consultation on transitional justice and ensuring that justice is done for all victims. Friends of Ethiopia are welcome to constructively support this process.

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National Forum on Economic Diplomacy Deliberates Investment Challenges and Opportunities in Ethiopia

The Ministry of Foreign Affairs of Ethiopia, in collaboration with the Ethiopian Investment Commission, organized a high-level discussion forum on 15-16 February, 2023 about the importance of resolving investment challenges and managing contraband and illegal trading to create FDI-trade synergy. The Economic Diplomacy National Forum brought together national and regional state presidents, ministers, city mayors, regional investment and trade bureau heads, commissioners, and other government officials.

Deputy Prime Minister and Foreign Minister Demeke Mekonnen said in his remark that Ethiopia has huge investment opportunities and continues to attract many foreign investors; however, he underscored that the process is not challenge-free. He said much has to be done for ease of doing business. For this purpose, he said that the government of Ethiopia has undergone extensive reforms in the past four years to make the country ready for business. In this regard, the homegrown economic reform agenda and 10-year development plan aim to maintain sustainable growth, a stable macroeconomy, and create decent and high-value-adding job opportunities. He also emphasized that the goal of the economic reform was to ensure sustainable and accelerated economic growth and structural transformation, promote market-led supply chains, and encourage the private sector to take the lead in the economy.

He said the reform will help the country ensure an inclusive trading system that can significantly contribute to the empowerment of people and implement policies that use trade as a means to pursue economic equity and social justice. The National Forum, according to Demeke Mekonnen, has exerted efforts and improved the investment inflow, legal trade, and export promotion over time, and all stakeholders have made efforts towards this end. However, many challenges still remain in both trade and investment, he said. He said these require further and sustained efforts by all concerned parties to make Ethiopia an investment and tourism destination, as well as maintaining fair and legal trade practices that encourage exports and foreign earnings. All these would help the country have sustainable peace and economic development that enhances global competitiveness capability, promotes trade, creates decent job opportunities, and prospers the nation.

The Deputy Prime Minister and Foreign Minister said the homegrown economic agenda offers huge opportunities, recalling that the Government of Ethiopia took necessary measures to open up and liberalize the economy to integrate with the global economy. He said investors are coming to Ethiopia and witnessing the country’s ample opportunities and potentials; for instance, its vast arable land, favourable climate, water, minerals, and geographical location that make Ethiopia an incredible hub for trade, investment, and tourism. Currently, tourism and trade promotions are in progress. According to Demeke, investors are also appreciating the government’s policies, strategies, directives, and incentives, including its strong commitment to encourage the private sector and its role in the economy. But the Minister said that investment challenges such as bureaucratic hurdles, land issues, infrastructure, electric power supply, and contraband and illegal trading practices must be addressed as soon as possible in a way that is commensurate with the government’s commitment to attract foreign investors.

Ambassador Mesganu Arga, State Minister of Foreign Affairs, on his part, said the objective of the national forum is to address investment, trade, tourism, and technology transfer, including technical and financial matters, and also initiate policy issues and recommend addressing the prioritized challenges in order to foster a private sector-led economic development that emphasizes productivity, competitiveness, decent job creation, and balanced trade for the country. As you all know, the state minister said, “We are in a post-conflict economic recovery program, which requires a clear plan for both the technical and national steering committees to resolve investment and trade challenges.” The Deputy Prime Minister reiterated that these investment challenges and contraband and illegal trade practices are significantly affecting our economy. He urged all stakeholders and government officials to respond to the crisis in a timely and coordinated manner. Following the opening remarks, two presentations follow: on investment challenges and the national investment assessment report and recommendations by Lelise Neme, Commissioner of the Ethiopian Investment Commission; and on contraband and illegal trade practices, challenges and recommendations by Debele Kebeta, Comissioner of Ethiopian Customs Commission. The Commissioner pointed out that his administration and all government officials have great responsibility in achieving national economic development and the wellbeing of the nation, such as by curbing contraband, collecting revenue from trade, protecting and ensuring the security of the nation, and facilitating legitimate trade. Thus, the two presentations were presented to the audience in turn, and they were followed by discussions.

Then, the forum discussed the two presentations and agreed that investment challenges have negative impacts on economic development and that contraband, which is an illicit act, has a harmful effect on the socio-economic development of the country. The forum emphasized the need to resolve the challenges that operating investment projects and legitimate trading systems have faced in some parts of the country. The discussion also placed an emphasis on strengthening the contraband prevention mechanisms, creating awareness in the community, and initiating policies that encourage border trading and development. Participants were also reminded that the Government should give more emphasis to encouraging the private sector in general and domestic investors in particular, and develop coordination mechanisms at all levels of Government to curb contraband and illegal trading and resolve investment challenges to attract investment. In addition, it was indicated that the role of stakeholders’ collaboration in creating conducive environment for peace and development is paramount.

In conclusion, the Deputy Prime Minister and Foreign Minister called upon all participants to encourage the private sector’s participation in the economy, reinforce ease of doing business, enforce the commercial law, implement the public-private partnership program, and adopt a new policy that opens up the financial sector to foreign investors, among other encouraging measures taken by the government to shift away from state-led development to the private sector. However, he said much has to be done to improve Ethiopia’s readiness to attract and maintain a legitimate trading system. In this regard, he added that all government officials at all levels must create public awareness, strengthen the National Committee organizing from the federal to the district level, and be determined to commence the operation to fight the challenges in all areas of the sectors. In this regard, the Deputy Prime Minister and Foreign Minister emphasized that the Ministry of Foreign Affairs will play its pivotal role in coordinating economic diplomacy activities to resolve investment and trade constraints and make Ethiopia an investment and tourism destination where a legitimate trading system prevails.

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Ethiopia Focused on the Full Implementation of the Pretoria Peace Agreement

During an Interactive Dialogue with the International Commission of Human Rights Experts on Ethiopia (ICHREE) in Geneva on 21 March 2023, the Permanent Representative of Ethiopia to the United Nations Office at Geneva, Ambassador Tsegab Kibebew, reaffirmed Ethiopia’s continued commitment to the full implementation of the Pretoria Peace Agreement.

In an official statement presented before the plenary session, Ambassador Tsegab said, Ethiopia is focused on the full implementation of the Agreement for Lasting Peace through a Permanent Cessation of Hostilities signed in Pretoria, South Africa on the 02 November 2022, through an African Union-convened process. This Agreement, he noted, stopped the conflict and all forms of hostilities. He said, the application key pillars of the implementation including increasing humanitarian assistance to affected areas and the restoration of basic services along with the disarmament, demobilization and reintegration (DDR) of former combatants is being overseen by the African Union Monitoring, Verification, and Compliance Mechanism. The Permanent Representative also mentioned the fact that a national public consultation on the DDR was held in Mekele, Tigray on 10 March 2023.

The Agreement has also provided transitional measures, which include adopting a transitional justice policy to ensure accountability, truth-telling, redress for victims, healing, and reconciliation, he added. These measures further consolidate the work of the inter-ministerial task force implementing the joint recommendations of UNOHCHR and the Ethiopian Human Rights Commission. The UNOHCHR and the Ethiopian Human Rights Commission, at the request of the Government of Ethiopia, are supporting the nationwide consultations on transitional justice and will jointly deploy human rights monitors to conflict-affected areas. In this regard, Ambassador Tsegab urged the International Commission of Human Rights Experts to take extra care in the period until September, when it will submit its final report, not to repeat the kinds of inflammatory and unfounded allegations contained in its preliminary report with the potential to undermine the Peace Agreement, stability and durable peace in Ethiopia.

The ambassador concluded his statement by duly reiterating the firm commitment of the Government of Ethiopia to investigate allegations of violations of human rights and humanitarian law, to ensure justice is done and victims receive redress.

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The 41st Session of Committee of Experts (CoE) and 55th Session of the Committee of Ministers (COM) was concluded adopting resolutions.

The 55th Session of the Conference of African Ministers of Finance, Planning and Economic Development (COM-2023) was held in hybrid format in Addis Ababa from 15- 21 March, 2023 under the theme of “Fostering recovery and transformation in Africa to reduce inequalities and vulnerabilities”. The Conference is one of the premier forums on the continent for dialogue and exchanges of views among African ministers responsible for finance, planning and economic development and governors of central banks on issues pertinent to the development agenda of Africa.it is a statutory and the highest decision-making meeting of the UNECA.  

The theme of the year “Fostering recovery and transformation in Africa to reduce inequalities and vulnerabilities” was echoed as pertinent and timely because the continent was challenged by Global crises most notably COVID-19 conflicts and climate change that have exacerbated levels of poverty and inequality. The theme also outlines the measures that need to be taken to ensure adequate access to financing, and push for a reform of the global financial architecture to unlock long-term financing, green jobs, pro-poor policies, tax mechanisms and curbing illicit financial flows so as to mitigate the recurrent shocks.

The aim of this year’s COM is to renew focus and action on reducing pov­erty, inequality and other factors that leave the Af­rican population continuously vulnerable to these scourges and the conference has put recommendations for the recovery efforts that must be done including the utilization of possible opportunities that the continent endowed with.

In his opening remark at the Ministerial Session, Ahmed Shide, Finance Minister of the Federal Democratic Republic of Ethiopia, stressed that Africa has a lot to do to resolve its socio-economic challenges including the widening income inequalities and extreme poverty across the continent. The minister highlighted the multiple crisis that started to challenge the continent and down turned several years of socio-economic gains and indicated that addressing the multiple economic challenges of Africa requires a collaborative and concentrated effort, which should be people focused, sustainable and inclusive.

The Minister also highlighted the government of Ethiopia’s effort in ensuring macro-economic stability, ease of doing business and addressing institutional challenges by launching A Home-Grown Economic Reform Agenda, the liberalization of selected sectors and privatization of public enterprises that have boosted private sector participation in the economy, tax reforms that improved domestic resource mobilization capacity. In spite of these positive gains there were a lot of challenges both internal and external factors, contributed to the macro-economic imbalances such as fiscal deficit, foreign exchange depletion, galloping inflation and accumulated debt remain stern economic setbacks of the country.

The minister also highlighted about the theme “Fostering recovery and transformation in Africa to reduce inequalities and vulnerabilities” as timely and recommended that Africa should continue to efficiently mobilize its opportunities and blessings to realize lasting economic transition and social transformation.

The Acting Executive Secretary  of the UNECA, Antonio Pedro, during his opening speech at the Ministerial Session said that Africa is at the centre of global sustainability transitions including the de-carbonization of production systems, electrification of transportation infrastructure, accelerated deployment of renewable energy, demographic dynamics and climate action in general and stressed that these transitions should underpin Africa’s path towards recovery, ensuring structural transformation and economic diversification, building resilience, and achieving sustainable and inclusive growth, in line with Agendas 2030 and 2063.

According to the Acting Executive Secretary, Africa need to ensure adequate access to financing and push for a reform of the global financial architecture to unlock long-term financing, green jobs, pro-poor policies, tax mechanisms and curbing illicit financial flows and every dollar spent must generate maximum socio-economic impacts and co-benefits that will go beyond GDP metrics and profit maximization.

Pedro emphasized that ECA’s, readiness to support member states to unlock the potential for prosperity in Africa mainly on sustainable financing of climate actions, carbon certification and accreditation processes to access carbon credit markets and the support for the development and implementation of national AfCFTA strategies, in collaboration with the African Union Commission, the AfCFTA Secretariat and other major partners. He also stressed the necessity of stronger policy coherence, institutional cohesiveness and coordination at continental, sub-regional and national levels are key to promoting transformational change in Africa.

The main subjects of deliberations of the 55th COM session in addition to the theme of the year focuses around the State of poverty and inequality and Conflict and insecurity in the continent. Some of the high-level round-table deliberations focused on: –

  1.  Policies and interventions to foster resilience and reduce poverty and inequality amid global shocks

In the discussion the ministers deliberated on shocks that the continents facing like declining revenues, rising debt stress, commodity price shocks, climate change and constrained fiscal space and delegations shared their experience on the measures taken to curb the impacts of Covid-19, Russia-Ukraine conflict, and debt burden.

Ahmed Shide as a panellist elaborated the measures Ethiopia has taken in response to both internal and external shocks mainly by passing temporary policy measures and directives to support the sustenance and recovery of private businesses affected by COVID-19, scaling up safety nets to support households and individuals impacted by the crisis, expansion and promotion of the application of digital innovation such as use of cashless payment, online working/learning activities and so on.

The Minister also raised the most significant step the government took to curb the price of wheat by significantly boosting local production through prioritized development of irrigation infrastructure and cluster farming approach.

Subsequently the Minister also shared Ethiopia’s experience to the attendees that Ethiopia was one of the few African countries that participated in the G20 Common Framework to better deliver on debt restructuring for developing countries and raised much more needs to be done on debt management, and expressed Ethiopia’s readiness to take bold actions on the most transformative reforms. Finally, the Minster expressed his confidence that the Common Framework process will deliver on its promise to facilitate a structured, well-coordinated, and transparent debt reprofiling for Ethiopia as well as for the other African countries that are taking part in this process.

  1. Socioeconomic implications of climate change and opportunities for leveraging green finance

The Ministers expressed their concerns on the impact of climate change on the continent that posed an existential threat to African but, Africa was responsible for less than 4 per cent of global greenhouse gas emissions and the continent is affected more than any other region by the adverse effects of climate change, including the consequences of extreme weather events, such as droughts, floods, and heat waves, erratic seasonal variations and rising sea levels.

The Ministers also recommended to take  innovative financing measures like Carbon credit trading in Africa that could allow African countries to mobilize alternative revenue sources for their sustainable development and climate action plans, leveraging  the great blue wall initiative, which was launched in 2021, to accelerate and scale up ocean conservation actions and the  use of sustainable budgeting approaches that can help to align the spending of limited resources with the maximization of climate resilience and poverty reduction as measures to be taken to mitigate the adverse impact of climate change in the continent.

  1. Harnessing the African Continental Free Trade Area for economic resilience and inclusion

In the discussion the ministers re-iterated that against the backdrop of sudden and dramatic disruptions to supply chains for essential products and increasingly frequent environmental disasters, African States are now striving to capitalize on the adoption of the Agreement Establishing the African Continental Free Trade Area to build resilience and foster inclusion in their long-term development strategies and the necessity to the full implementation of AfCFTA to foster recovery and transformation in Africa, while also reducing inequality and vulnerability.

The Ministers also recommended to take actions to fully implement and leverage Implementation of the agreement that could accelerate the realization of the continent’s ambitions for industrialization, value addition and private sector-led growth.

The CoM was concluded by adopting ministerial statement and resolutions.

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Spokesperson's Directorate General of the Ministry of Foreign Affairs of the Federal Democratic Republic of Ethiopia.

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