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Booming Ethiopia has no Oil but a Vision
Credit - Getty Images

  • Uganda journalist talks about the infrastructure development in Ethiopia.
  • “While we (Ugandians) struck oil, these people (Ethiopians) struck a vision”


By Dorothy Mainza

Did you people also strike oil recently?” I ask Mekonnen, my Ethiopian friend after we had driven across a large part but small portion of the vast, landlocked country.
“No no no, no oil,” he answers emphatically.

I ask about any other mineral wealth but nothing astounding is apparent. I tried some quick research in offices and on the Internet. But nothing could easily explain the construction boom going on in Ethiopia. Highways, railways, and of course dams, especially the Renaissance Dam.

For several days, Mekonnen takes me very close to the ground, meeting very ordinary people today, the elite the next day, eating all Ethiopian foods (the cooked variety) and drinking local wine from glasses that have a very narrow opening – to slow down the rate of intake, I am told.

Everyone I ask about the apparent new wealth that is powering the infrastructure boom says it is government tax revenues and donations. But even if the revenue authority is very efficient, there is a limit to what you can collect from these poor people. The biggest wealth seems to be the 50 million heads of poor quality cattle, which is not much for a population of 85 million. I remain puzzled.

I get the answer on my last evening in the New Flower – that is what Addis Ababa means. And guess what, the answer comes from a Ugandan. I meet this very senior Ugandan, who for obvious reasons shall remain unnamed, and I put the question that I have been asking all around.

“It is simple really,” answers the Ugandan. “While we struck oil, these people struck a vision.” “C’mon…” I protest, using the Ugandan’s official title. “There has to be a secret that is powering this construction besides a mere vision!”

“That’s the problem with us,” says the Ugandan. “In Uganda ‘vision’ is a mere blurred word from the mouth while here it is a real guiding principle. This country is poor but public funds go to the intended purpose. Grand corruption is not allowed.”

Before I can talk, the Ugandan continues, “Because big people here are not allowed to steal, everyone from donors to small taxpayers is encouraged to give the government money. In Ethiopia, money put in the government’s hands is safe. A clear vision and a clean government is the oil that the Ethiopians have struck.”

It all suddenly sinks in. I begin to understand how the Ethiopians are constructing a power dam that will generate 5,250 MW at a cost of a ‘mere’ Euro 3.3 billion from their annual budgets, which works out to about $800,000 a MW.

To imagine, using Hilary Onek’s figures, that Uganda uses about $7 million to create one MW capacity, I want to hide my face. What is wrong with us? And the Ethiopians are attaining all this infrastructure development without waiting for a lucky oil strike! Trouble with waiting for oil money to build a dam is that your Central Bank governor can forget where he kept the oil money and insist he used it to buy weapons, and life goes on.

Ethiopians are poor and the public servants’ salary is nothing to write home about. But the donors trust Ethiopia more than countries with a ‘free press’ and argumentative parliaments. And people are not stopped from going out to work in ‘freer democracies’ the way donors define them. In fact, for a country that has no colonial links, Ethiopia has a large Diaspora population. The dizzying number of Western Union outlets is testimony to this. Otherwise, there are no foreign banks here. All commercial banking must be done by Ethiopians.

Ethiopians were never colonised and have always dealt with external military threats effectively. But in addition, their military is economically useful. The army engages in real production rather than just talking about it and wasting taxpayer’s money in ghost ventures. Their army is now assembling buses to beef up the public transport.

A week’s tour has taught me a lot about the determination of the Ethiopian leadership. But I cannot get their quest for a green economy and clean energy out of my head.
I think of our energy officials fumbling before Parliament, burning millions of dollars on one-off thermal power generation of a few Megawatts. Rather than hanging around boardrooms and hotels abroad, why don’t they visit the Ethiopian Embassy in Kampala for some sensible answers to electricity production?


SOURCE


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Comments 8 comments for this article
Added: December 10, 2011. 06:40 AM GMT
To the very senior Ugandan that cannot be named
His observation that "Grand corruption is not allowed |In Ethiopia|" is an insult to the large majority of Ethiopians. Please read the below article By Christopher Matthews, from Corruption Currents written on Dec 6, 2011.
Ethiopian illicit outflows doubled in 2009,
Ethiopia lost $11.7 billion to outflows of ill-gotten gains between 2000 and 2009, according to a coming report by Global Financial Integrity That’s a lot of money to lose to corruption for a country that has a per-capita GDP of just $365. In 2009, illicit money leaving the country totaled $3.26 billion, double the amount in each of the two previous years. The capital flight is also disturbing because the country received $829 million in development aid in 2008.

According to GFI economist Sarah Freitas, who co-authored the report, corruption, kickbacks and bribery accounted for the vast majority of the increase in illicit outflows.“The scope of Ethiopia’s capital flight is so severe that our conservative US$3.26 billion estimate greatly exceeds the US$2 billion value of Ethiopia’s total exports in 2009,” Freitas wrote in a blog post on the website of the Task Force on Financial Integrity and Economic Development.The report, titled “Illicit Financial Flows from Developing Countries over the Decade Ending 2009,” drew on data from the World Bank and the International Monetary Fund on external debt and trade mis-pricing to calculate illicit capital leakage. The study, which will be released later this month, measures the illicit financial flows out of 160 different developing nations.Ethiopia is one of the poorest countries on earth as 38.9% of Ethiopians live in poverty, and life expectancy in 2009 was just 58 years.
“The people of Ethiopia are being bled dry,” Freitas wrote. “No matter how hard they try to fight their way out of absolute destitution and poverty, they will be swimming upstream against the current of illicit capital leakage.
Che Belew
Added: December 06, 2011. 04:57 PM GMT
Repression
Repression (of TPLF) is another form of poverty! Barak H Obama.
Yoo123
Added: December 06, 2011. 02:31 PM GMT
The worst Journlist ever
That woman is stupid stupid stupid stupid stupid. Her IQ is probably less that 40. Ugandans are trying to learn from the country which is led by the a dictator. How stupid is that. She just didn't say vision. She just insulted the majority of the people who don't share the so called "vision of Meles". That vision is a nightmare for more than 85% of the population. That woman is going down with here ignorance just like all other alias of the tyrant government of Ethiopia. These idiots have been lied to and they have believed everything Meles and his dogs shower them with.

True friends of such kind of criminal government are George Bush and the like.

whatever
Added: November 30, 2011. 10:02 AM GMT
if it is true bravo to meles and co but i have feeling this is incorrect assesment as most ethiopians don't trust meles let alone share his vision
Kera
Added: November 30, 2011. 06:01 AM GMT
Poor journalist
I think he was fed by the fake, corrupt Ethiopian government. They share the same mentality, praise little achievements and hide big failures. Poor journalist.
none
Added: November 29, 2011. 11:19 PM GMT
good..
this is what I like to hear...some good news from Ethiopia for once lol...all you bitter dergists and idiots in the diaspora...this ones for you...
Jimma_Warrior
Added: November 29, 2011. 07:41 PM GMT
Truth hurt


Thank you for telling what you see on the ground.It is not what diaspora opposition groups want us to belive.Ethiopians are marred with conflicts and watched centuries going bye,and they don`t have the luxury to wast another time.
Let the oppostion parties participate in nation building instead of working day and night to unseat the current administration.
Added: November 29, 2011. 05:11 PM GMT
Tirungo Abebe
"Booming Ethiopia has no Oil but a Vision."kkkkkkkkkk...

Nice to keep multiplying sweet but empty hypnotizing words alone as if that is the best way of feeding the starving and dying Ethiopians of some 85 million.

Ethiopians have been starving to death during the King's rule. Ethiopians have been starving to death during Mengistu's rule. Ethiopian are starving even more during the last 20 long years of tplf minority rule. All of these dictatorial bad governors were skilfully hiding both from the domestic and international communities the cruel deaths and inhuman sufferance of the people. At the same time, the long ruling bad governance of the minority tplf keep hiding from starving Ethiopians abundant Ethiopian fertile virgin farm lands which it is currently and open handidly donating to foreign land grabbers and shameful brutal en slavers.

THE BOOM IN LAND GRABBING IS A REAL BOOM! THE BOOM IS FOR THE DICTATORIAL ELITES ALONE. FOR THE MAJORITY OF ETHIOPIANS IT CAN BE CHARACTERIZED THE DOOM.

And the DOOM can be converted in to the BOOM by the democratic, humanistic pluralistic popular uprising in order to bring equality, welfare and justice for all.

This is an article by tyrants to help fellow tyrants at the expenses of the citizens.
"Birds of a feather flock together" as the wise saying states.