#Ethiopia floats "loss reinstatement" provision in bond rework –sources

In an effort to swiftly renegotiate its $1 billion Eurobond, Ethiopia's government is in talks with bondholders, introducing a "loss reinstatement" provision for investors. Facing potential default after failing to pay a $33 million coupon on 11 December, Ethiopia's proposal mirrors recent ones but includes the added provision, compensating bondholders in case of another default affecting post-rework bonds.

Despite challenges such as high inflation and external debt, Ethiopia seeks bondholder support for debt relief that aligns with #China's demands for "comparability of treatment." The government argued that paying the coupon would complicate relations with other creditors.

As discussions unfold, Ethiopia emphasizes the importance of satisfying official creditors for comprehensive debt relief. The nation had earlier requested debt relief through the G20's Common Framework in 2021, with subsequent delays due to ongoing conflicts. Stay tuned for updates on this critical economic situation.

https://www.reuters.com/world/africa/ethiopia-floats-loss-reinstatement-provision-bond-rework-sources-2023-12-14/

#Ethiopia: Tragic ambush by armed men claims 13 lives in Horo Guduru Wollega, #Oromia region

On December 12, 2023, a heart-wrenching incident unfolded in the #Horo_Guduru_Wollega Zone of Oromia by individuals identified as “members of the non-state militia, #Fano,” resulting in the loss of at least 13 lives and several injuries.

Reports indicate that the victims, including peasants, entrepreneurs, and farmers, were traveling from #Korkobe in the #Amuru district to the #Bure district in the #Amhara region for crop harvesting.

According to a local teacher, speaking anonymously, the victims fell prey to the militants during their journey. The assailants targeted a truck owned by Nuguse Banja, leading to the tragic deaths.

https://addisstandard.com/news-tragic-ambush-by-armed-men-claims-13-lives-in-horo-guduru-wollega-oromia-region/

#Sudan seizes major arms shipments intended for Rapid Support Forces

Sudan's military intelligence recently intercepted two large shipments of arms that were intended to bolster the capabilities of the Rapid Support Forces (#RSF) paramilitary group. Acting on intelligence, security forces ambushed smugglers transporting over 190 automatic rifles across the #Ethiopian border via the Upper Atbara and Setit dam complex.

The first shipment contained 85 guns captured in Gedaref State's Sedira region. The second larger shipment of over 100 firearms was apprehended after a firefight with traffickers near Jabal Al-Dhara. Sources suggest the illicit arms pipeline received backing from an unnamed Arab nation seeking to expand RSF capabilities.

The weapons seizures come amid escalating tensions between the RSF and official Sudanese security forces over RSF military operations.

https://sudantribune.com/article280311/

Op-Ed: #Somaliland’s resilience deserves international recognition

In an op-ed, Shukri Haji Ismael, Minister of Environmental and Climate Change for Somaliland, highlights the nation's substantial progress since 1991, alongside escalating environmental challenges that now pose existential risks to its development gains. The piece emphasizes the adverse impact of recurrent droughts and extreme weather on agrarian communities dependent on natural resources.

While ambitious sustainability policies and initiatives are in progress to align with international frameworks such as the #UN Sustainable Development Goals, the author asserts that current resource constraints hinder adequate adaptation responses.

The op-ed welcomes transformative partnerships, citing DP World's investment in port infrastructure as a model for collaborative solutions. It underscores Somaliland's commendable perseverance in advancing national priorities despite limitations. Accordingly, the official appeals for elevated global solidarity and engagement to support ongoing climate resilience efforts.

https://addisstandard.com/op-ed-somalilands-resilience-deserves-international-recognition/?amp=1

#Ethiopia: Gov’t proposes mitigants to compensate holders of its $1 billion Eurobond

The Ethiopian Ministry of Finance has signaled willingness to engage bondholders on potential debt relief measures for the $1 billion Eurobond maturing in 2024. Proposed solutions reportedly include reinstating losses within two years should terms require renegotiation, restoring investors to their prior position

#Addis_Abeba emphasizes the importance of equitable and consistent treatment by pursuing comparable agreements across all external creditors, such as Eurobond holders. Suspending the December coupon payment ensured uniform approach during negotiations, according to the ministry.

Bondholders can provide feedback on outlined parameters balancing stakeholder interests while minimizing revisiting agreements. This addresses concerns over fair treatment and debt sustainability standards. The goal, according to the government, is minimal concessions from bondholders as Ethiopia works with lenders.

https://addisstandard.com/news-govt-proposes-mitigants-to-compensate-holders-of-its-1-billion-eurobond/?amp=1

#Ethiopia: Family raises concern over ex-state minister’s detention without charge, denial of access to family and lawyers

The family of Taye Dendea, recently removed Deputy Minister of Peace, has expressed frustration with his ongoing detention without appearing in court and denial of access to his family and legal counsel. Taye was removed from office on December 11th and arrested the following day on allegations of terrorism links during his tenure.

According to Taye’s wife Sintayehu, brief supervised visits show Taye in detention but allow no communication. Lawyers have also been denied meaningful access. After Taye's arrest, his family was given three days to vacate provided housing, now seeking refuge with few belongings after their remaining property was looted.

The traumatic chain of events has taken a major emotional toll on Taye’s two children now withdrawn from school over severe distress from their father’s absence and the family’s uncertain future. “They constantly ask about their father,” notes Sintayehu.

While officials claim pre-arrest findings showed Taye’s terrorism role while serving, Sintayehu remains hopeful authorities will judiciously grant Taye a fair legal review of accusations and evidence to bring clarity and closure.

https://addisstandard.com/news-family-raises-concern-over-ex-state-ministers-detention-without-charge-denial-of-access-to-family-and-lawyers/?amp=1

#Ethiopia: Dive into the discourse on economic development in Africa with renowned economist Professor Jeffrey Sachs!

In an enlightening public lecture hosted by the Office of the Prime Minister, Professor Jeffrey Sachs delves into the promising landscape of economic development across #Africa.

With a focus on key pillars such as quality education, robust infrastructure, prudent long-term loans, and the imperative of steering clear of conflicts, Professor Sachs shares valuable insights.

“To avoid wars and calamities critical for economic development,” he said.

Don't miss out—watch now!

Long Island Republicans Tap #Ethiopian-Born Mazi Melesa Pilip for NY House Seat Amidst #Israel-#Hamas Tensions

In a bold move, Long Island Republicans have selected Mazi Melesa Pilip, a 44-year-old Ethiopian-born legislator, to run for the vacant #New_York House seat. Pilip, a mother of seven, served as a paratrooper in the Israel Defense Forces and has a compelling biography, vowing to combat antisemitism.

While lacking traditional political credentials, Republicans believe Pilip's diverse background and advocacy for Israel make her a potential breakout star, especially amid the ongoing Israel-Hamas conflict. The special election is set for 13 February, with analysts labeling it a tossup.

Pilip's nomination contrasts with her Democratic opponent, Tom Suozzi, a former congressman with a lengthy political history. Notably, both candidates are registered Democrats. Pilip's relative anonymity prompts questions, but Republicans emphasize her unique life story and commitment to service.

The race unfolds against the backdrop of national issues, with Pilip criticizing President Biden's policies on immigration and foreign affairs. Republicans endorse Pilip, highlighting her life of service, while Democrats label her a "MAGA extremist."

https://www.nytimes.com/2023/12/14/nyregion/pilip-santos-special-election.html

#Ethiopia: Gov’t extends grace period for vitamin-deficient food imports

Amidst a significant accumulation of imported cooking oil and wheat flour found to be deficient in the mandatory vitamin fortification requirement within various customs offices and dry ports, the government has opted to extend the grace period until 08 March, 2024.

This extension allows exporters to continue importing and distributing food items without immediate compliance with the fortification mandate. Ministry of Trade and Regional Integration has recently implemented new regulations for traders importing wheat flour and edible oil products into the country.

These regulations mandate that the imported products must be enriched with vitamins before entering the country and being distributed in the market.

Read more at: https://twitter.com/addisstandard/status/1735921635750719948

Op-ed: Justifying Dictatorship in #South_Sudan: A Case Against the East African Community

The recent appointment of Salva Kiir, President of South Sudan, as the Chairperson of the East African Community (#EAC), has prompted deep concerns about the bloc's dedication to its fundamental values, asserts Duop Chak Wuol, Editor-in-Chief of the South Sudan News Agency. While regional leadership aspirations are not inherently problematic, Wuol stresses that supporting a leader with a well-documented ruthless record raises significant ethical questions.

Despite the EAC's proclamation of a vision for a prosperous, secure, and politically united East #Africa, Wuol argues that the bloc appears to have overlooked Kiir's controversial leadership, effectively endorsing a dictatorial political system. This decision, according to Wuol, directly contradicts the EAC's professed values of professionalism, accountability, and transparency.

Salva Kiir's tenure in South Sudan has been marred by insecurity and political instability, with alleged involvement in appalling crimes during the civil war. Wuol contends that the EAC's failure to thoroughly scrutinize Kiir's leadership raises fundamental questions about the bloc's principles and its commitment to universally accepted standards of governance, democracy, and human rights.

As the EAC navigates this appointment, Wuol emphasizes the urgent need for the bloc to reassess its choices, ensuring that future leadership appointments align with its declared values. The concerns raised by Kiir's elevation underscore the importance of upholding ethical standards in regional leadership, safeguarding the integrity of the East African Community.

https://addisstandard.com/op-ed-justifying-dictatorship-in-south-sudan-a-case-against-the-east-african-community/

Shipping firms pause #Red_Sea journeys over attacks

Danish shipping giant #Maersk announces the suspension of all Red Sea journeys following a series of attacks on vessels originating from #Houthi-controlled #Yemen. The #Iran-backed rebels, expressing support for #Hamas, are targeting ships bound for #Israel.

#German company #Hapag_Lloyd follows suit after one of its vessels was attacked. The Bab al-Mandab Strait, a critical passage for oil and fuel shipments, sees about 17,000 ships and 10% of global trade annually.

The perilous strait, located between Yemen and #Djibouti/#Eritrea, is vital for ships reaching the #Suez_Canal from the south. The suspensions impact global trade, complicating the supply chain, potentially affecting Christmas deliveries. At least two other cargo ships in the strait were attacked on Friday, with the #US blaming the Houthis and warning of threats to navigation freedom. The situation escalates tensions in the region as the Houthis control parts of Yemen, triggering a civil war since 2014.

https://www.bbc.com/news/world-middle-east-67731853

Debt woes escalate for #Ethiopia as credit rating drops

In the wake of a devastating civil war and the lingering impacts of the COVID-19 pandemic, Ethiopia is facing a challenging economic period. Recently, Fitch Ratings downgraded the country's credit rating from 'CCC-' to 'C,' signaling an increased risk of default on its debts.

Once celebrated for rapid economic growth, Ethiopia now grapples with heavy debt, unable to meet its #Eurobond obligations. This downgrade, reminiscent of other African nations like #Zambia and #Ghana, raises concerns about external liquidity and significant financing gaps.

Efforts for debt relief and a new #IMF loan are underway, but as of October 2023, no staff-level agreement has been reached. Ethiopia's economic challenges reflect a broader trend in developing countries, where debt has doubled to approximately $3.5 trillion over the past decade.

https://www.riotimesonline.com/debt-woes-escalate-for-ethiopia-as-credit-rating-drops/

#Ethiopia conducts first of its kind air show to celebrate the 88th founding anniversary of the Ethiopian Air Force.

The "Black Lion Air Show” was organized in collaboration with the #UAE and was carried out today in #Bishoftu city.

In the run up to the air show, Air Force Commander Lt. Gen. Yilma Merdassa spoke to state media, among others, about the restructuring & preparedness of the Air Force to respond to modern day warfare, and the multifaceted relationship with the UAE, focusing on the depth of military relationship.

Watch ⏬