Thursday, September 22, 2011

Sudan’s economy seen shrinking in 2011-2012: IMF


September 21, 2011 (WASHINGTON) – The economy of post-secession Sudan will experience contraction in growth in the years 2011 and 2012, according to data released by the International Monetary Fund (IMF).
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Olivier Blanchard(2nd-R), chief economist for the IMF speaks September 20, 2011 during a press briefing on the World Economic Outlook report at IMF headquarters in Washington, DC (AFP)
Sudan lost 75% of its oil reserves after the southern part of the country became an independent nation last July denying the north billions of dollars in revenues. Prior to the country’s breakup, Sudan produced close to 500,000 barrels per day.
In its World Economic Outlook published this week, the IMF projected a negative real GDP growth for Sudan; -0.2% in 2011 and -0.4% in 2012. This is down from the 6.5% growth achieved in 2010 and an average of 6.7% in the years 2003-2009.
The economy will nonetheless rebound in 2016 to a 5.5% growth rate.
This month the Sudanese minister of finance and national economy Ali Mahmood Hassanein told reporters in Abu Dhabi that economic growth would be around 5% in 2011 and 6% in 2012.
The IMF further forecasted a moderate worsening of Sudan’s current account balance as percentage of GDP from -6.7% in 2010 to -7.3% in 2011 and -7.6% in 2012.
Current account balance is defined as a country’s net trade in goods and services, plus net earnings from rents, interest, profits, and dividends, and net transfer payments (such as pension funds and worker remittances) to and from the rest of the world during a specific period of time.
According to the report, consumer prices will increase by 20% in 2011 before dropping to 17.5% in 2012. The figure was at 13.0% in 2010.
Unemployment rate on the other hand will decline from 13.4% in 2011 to 12.2% in 2012.
The impact of the economic situation is beginning to be felt by the ordinary citizens in Sudan in the form of rising food prices and persistent shortage in foreign currency available.
The Bank of Sudan (BoS) governor Mohamed Khair al-Zubeir gave the clearest indication of depletion in the country’s foreign exchange reserves by saying that he asked Arab countries to deposit funds into his institution and commercial banks.
"I have requested the governors to deposit some reserves in the central bank and also in Sudanese commercial banks," al-Zubeir told Reuters in an interview after a meeting of Arab central bankers in Qatar’s capital last week.
Zubeir said he did not ask for a precise amount, but said: "We of course need about $4 billion for this year”.
The Sudanese finance minister said in separate statements that the country needs no less than $1.3 billion to cover the budget deficit.
Because of US sanctions as well as Sudan’s heavy debt, borrowing options for the East African nation are severely limited.
The Sudanese president Omer Hassan al-Bashir told parliament last July that an economic emergency programme has been put in place for the next three years that is focused mainly on austerity measures that aims to cut spending.
Earlier this year, the Sudanese government approved an austerity package that partially removed subsidies on sugar and petroleum products, a step welcomed by the IMF.
Sudan is hoping that transit fees charged to the South for using its oil pipelines will help cushion the impact of secession. However the two sides have yet to agree on how much should be assessed for using the North’s infrastructure.
(ST)

Wednesday, September 21, 2011

Ethiopia: Terrorism-linked arrests not politically motivated


September 18, 2011 (Addis Ababa) – The Ethiopian government said the recent arrests made against opposition politicians and journalists were not politically motivated claiming that a terror plot was planned for the country’s New Year celebrations last week. Ethiopian security forces earlier this week arrested five terror suspects on alleged links with Ginbot 7, an exiled political group, recently designated as terrorist organisation by Addis Ababa.
The Federal Police and the Government Communication Affairs Office (GCAO) in a joint press conference both gave on Friday said police has concrete evidence over their planned terror plot links to Ginbot 7.
Among the arrested included Andualem Arage, deputy chairman of the Medrek party, the country’s biggest opposition group, and three other opposition party members.
“Police have adequate evidence against these terror suspects with close links to the terrorist group Ginbot 7,” said Demelash Gebremichael, assistant the assistant commissioner of Ethiopia’s federal police.
He said the suspects engaged in undercover work for outlawed entities using their legal political membership as cover for their terrorism plots.
“Being a member of a political party does not exempt one from criminal liability and the evidence we will present to court during trial shows their involvement in terrorism,” Demelash said.
Following the arrests, Human Rights Watch urged the Ethiopian government to end what the rights group said was “a widening crackdown against opposition politicians and dissidents”
Adopted in 2009, Ethiopia’s Anti-Terrorism Proclamation, contains a broad and vague definition of terrorist acts and makes the publication of statements "likely to be understood as encouraging terrorist acts" punishable by imprisonment for 10 to 20 years.
International human rights groups have described the Proclamation as “restrictive and vague” and have further criticised the broadly termed law as a weapon designed to easily accuse peaceful critics against government.
Minister of state at the Communications Ministry, Shimeles Kemal, defended the government over reports that the arrests were in order to suppress civil dissent.
“Such claim of arrests of individuals in the country because of political outlooks is baseless” he said.
“Over 90 political parties operate in the country and none of these political party members are being harassed or intimidated for their political outlook.”
Those being held were “leading a plan to throw the country into serious political chaos through a series of terrorist acts,” he added.

Omod Obang concluded his weeklong visit to India and downplayed talk of land grabs



September 03, 2011 (Gambella) – President of Gambella regional state, Omod Obang Olom downplayed talk of land grabs in the Gambella region.
The president made the remark yesterday during a press conference he held here after concluding his working visit to India which aimed at promoting investment in the region.
“Talk of land grabs in Gambella region is unfounded and is spread by anti-development forces,” Omod said.
The government of Ethiopia consistently rejected claims of land grabs in the country insisting that the land transfer is made on the basis of transparent land lease arrangements for a term of 25 to 40 years.
According to the government there is three million hectares of unutilized land prepared and ready for investors in Ethiopia, of which only 10 percent have been allocated.
 “The public should not heed to comments of land grabs and stand on the side of the government to promote the region’s development,” Omod urged.
Over 280 domestic investors and big international companies, engaged mainly in the agriculture sector, including Saudi Arabia’s Saudi Star and India’s Karuturi operate in the region.With a view to further promoting investment in the region, Omod was on a weeklong visit to India.
Omod said his visit will be helpful to strengthen commercial farming in Gambella to ensure more benefits to farmers in the region.
Small scale farmers in the region mainly produce maize and sorghum predominantly used for domestic consumptions.
“We will encourage farmers to produce industrial inputs such as cotton, which will be ideal to improve their earnings,” Omod said.