2merkato

Meles Zenawi, Prime Minister of Ethiopia hinted of a potential oil discovery in the next year. The Prime Minster made the claim while addressing participants of the Ethiopia Investment Forum which was a side event to the 22nd World Economic Forum on Africa.

There are investment opportunities in the extractive industry including oil exploration told Meles to more than 200 domestic business leaders and as many international corporate CEO’s.

The Prime Minister claimed that Tewodros Ashenafi, Founder, Chairman and Chief Executive Officer of South West Energy will be the bearer of good news.

Ethiopia received 50 million US dollars from the Climate Investment Fund after the country’s investment plan under the Scaling Up Renewable Energy Program for Low Income Countries was approved by the committee members for the CIF.

The decision was rendered at the CIF committee meetings that took place in Washington DC from the 30th April to the 4th of May. The African Development Bank, as the implementing agency of the Climate Investment Fund, represented African interests at the week-long meetings.

The plan presented by Ethiopia calls for the African Bank to offer investment and technical support to execute Phase II of the Aluto Langano Geo-thermal Project and Assela Wind Farm Project. The AFDB is expected to inject 23 million US dollars of the total SREP financing to the Ethiopian projects.

The African Development Bank is set to invest 22.6 million US dollars to enhance the renewable energy programs in low income countries including those that are active in Ethiopia. The investment plan was endorsed by the SREP’s sub-committee at a meeting held in Nairobi in March.

The investment plan, approved in principle, calls for technical support and guidance from the African Bank to prepare and implement the Assela wind farm project and Phase II of the Aluto Langano geothermal project.

Grants for project preparation of 1.7 million and 900 thousand US dollars were approved for both projects.

Yara International is to increase its investment in the Ethiopian potash sector increasing ownership in Ethio-potash BV from 16.67% to 51%.

Yara had entered into an agreement with two partners to invest in 16.67% of Ethio-potash. The other partners were Seftec with 26% share and XLR with a 57.33% share and management of the company in 2009.

XLR will retain a 49% share while Yara will take over the management of the company with its 51% share.