ETHIOPIA & PRESIDENTIAL ADVISOR
[This letter describes the sort of work I was engaged on for the Council of Ministers]
0316 Overseas Partners
To: EFFORT, Addis Ababa, Ethiopia
For the attention of : Seeye Abraha
Fax Number: 00 251 1 550371
From: David Mercer
Total number of pages: 3
(inc. cover sheet)
|
|
|
The Open University
Home Line (01908) 679759 |
Open Business School
25 March 1996
Seeye Abraha
Chairman EFFORT
Addis Ababa
Ethiopia
Fax: 00 251 1 550371
Dear Seeye,
My apologies for taking so long to get back to you. Unfortunately neither I, nor Jane Henry, have been successful in finding suitable 'partners' in the areas you asked about.
In terms of marble, one of my friends actually was a major buyer - in that he was the consulting architect on the Saudi Foreign Ministry. He says, though, that you need an agent who will keep you abreast of the major building projects - since the marble for these is contracted individually. He, incidentally, bought an Italian quarry to ensure continuity of his supply!
In terms of coffee, neither Jane or I have been able to find contacts who would provide the level of buying power you need.
On the other hand, I have just found an interesting contact for one of the projects I thought was not really a possibility - the Lake Tana hydro-electric scheme.
The contact is:
Jaap van Deventer
Corporate Strategy Manager
Eskom
Megawatt Park
PO Box 1091
Johannesburg 2000
RSA
Telex: 4-24481 SA
Fax: (011) 800-5596
Telephone: (011) 800-4689
ESKOM is the (almost monopoly) electrical power provider in South Africa. They
work very closely with government, but even so are uncertain of their future
beyond one year; since the industry may be privatised.
As a result they are looking outside South Africa. In addition, they are one of the few companies which (despite their short-term uncertainties) work to long planning horizons; 20 years or more.
They are looking in the medium term to establish an electricity grid from the Cape to the equator (and your are not too far beyond this). In the longer term they are working (with others, including international agencies?) to establish two main lines on the continent. One would follow a path up the West Coast based on power from the Congo River. The other would be toward the East Coast - to supply Egypt. Surprisingly, at present the Eastern line is planned to run through Sudan; bypassing Ethiopia!
They see the main source of power, for the whole operation, being the Congo River - which they estimate could produce 100 gigawatts of electricity. They see this eventually being taken to Europe! To my surprise they say the line losses would be affordable - since the source is so cheap.
They are, understandably, interested in the Lake Tana scheme. It is remarkably well placed to serve the Eastern route. In particular it would meet the needs of Egypt - which are the highest priority (albeit in the longer term). They simply had not known about the potential in Ethiopia. In view of the very cheap cost of Lake Tana, which (in the absence of direct information) they are sceptical about, I would suspect that this could take precedence for them over the Congo (which is, in any case, less stable politically).
I should warn that this is not a scheme which will be started immediately. They (and you) work to much longer timescales; so it will be one or two decades before it gets off the ground (unless the World Bank stimulates it). Even so, I think it might be so important for the future of the whole of East Africa, not just Ethiopia, that it might be worthwhile talking to them.
I have not made any formal arrangements yet; I wanted to see what your own position was - and, in particular, whether you were interested. If you do want to proceed with some talks, I will be happy to arrange the contact.
Yours
David Mercer
hits
