BuaNews (Tshwane)
Michael Appel
18 March 2008
Pretoria — South Africa and Ethiopia are to maximise trade and capacity between the two countries through the Investment Protection and Promotion Agreement which was signed on Tuesday.
Trade and Industry Minister Mandisi Mpahlwa and Ethiopia's Foreign Minister Seyoum Mesfin signed the agreement at the Diplomatic Guest House in Pretoria.
The minister said the agreement would unlock potential between the two countries. "We should always see the trade and investment issues as interrelated," said Mr Mpahlwa.
The agreement must be seen in its totality, he said, as South Africa cooperating in ensuring we produce the conditions that will ensure trade goes beyond its current levels.
Ethiopia, with a population of about 80 million, is home to Africa's largest livestock population with more than 80 percent of Ethiopians involved in the agricultural sector.
"Ethiopia is a country that has huge strength in the area of agriculture; both in terms of its contribution to Gross Domestic Product, and in employment capacity with 80 percent of the people employed through agriculture.
"We have to work to make sure that Ethiopia can also [diversify its exports and produce] processed goods.
"The most immediate thing at the moment is to maximise on the trade taking place between the two countries, and the agreement will assist us to encourage South African companies to invest in Ethiopia to strengthen that capacity to produce goods that then feed into raising the level of trade between the two countries."
Mr Mesfin told reporters the newly signed trade agreement will create a framework of encouraging the respective business community members to fully utilise the opportunites that exist between the two countries in terms of trade and investment.
"We feel as the two governments that we have put the correct legal framework in place but at the same time we will work closely to encourage our business community ... as the potential that exists between the countries is numerous and huge," said Mr Mesfin.
The Ethiopian Foreign Minister highlighted that his country's economy, mainly agrarian driven, has been doing very well with GDP growth of 10 percent or more in the last five years.
Also, Minister of Foreign Affairs Nkosazana Dlamini-Zuma signed a number Memorandum of Understanding (MOU) with her counterpart on Industrial and Technical Co-operation.
Ms Dlamini-Zuma said core areas of discussion focussed on a number of areas including trade and investment, agriculture, defence, arts and culture, tourism, human resource development and health.
She highlighted that the Joint Ministerial Committee was created to drive and monitor decisions and agreements taken by the two countries.
South Africa and Ethiopia established official diplomatic relations in 1994, and Ethiopia is the new chair of the New Partnership for Africa's Development.
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Fake gold suspects denied bail in Ethiopia (Reuters) 21 March 2008 ADDIS ABABA - Ethiopia’s federal court denied bail on Friday for 27 suspects in a $17 million fake gold scandal at the country’s central bank. The National Bank of Ethiopia was ordered to check all its gold deposits last week after a consignment of bars shipped to South Africa was found to include gold-plated steel. ‘The charge is too complex and involves a number of people in a criminal case that requires more time to investigate,’ the court in Addis Ababa said in its ruling. ‘We have decided the suspects should remain in custody for a further 15 days. The case is adjourned until April 7.’ The accused, who include 11 bank employees, were brought to the courtroom by armed police. The other suspects are workers from the Geological Survey of Ethiopia, which was meant to test and certify the gold deposits, and businessmen thought to have profited from the scam. They are all charged with causing a $17 million loss to the bank. Thousands of artisanal miners in south and southeast Ethiopia extract alluvial gold, which is supposed to be checked by the Geological Survey before it is sold to the National Bank and to South Africa.