Archive for September, 2010
The United States government on Thursday signed a $ 229.3 million agreement with Ethiopia
The United States government on Thursday signed a $ 229.3 million agreement with Ethiopia, aimed at expanding cooperation on development programs in education, health, and economic growth, including agriculture and trade.
The amount, due to be channelled through the United States Agency for International Development (USAID), results from close consultation between the governments of Ethiopia and the United States on priorities for the improvement and expansion of health and education services, the advancement of rural development and opportunities to generate income and create private enterprises.
The agreement was signed in Addis Ababa between USAID and the Ethiopian Ministry of Finance and Economic Development.
According to the agreement, $23 million will be provided to improve the quality of primary education, with emphasis on increasing girls’ access to education and teacher training.
An additional $157 million will support life-saving maternal, child and reproductive healthcare, as well as combat HIV/AIDS, control malaria, and improve water and sanitation.
In the economic growth sector, $49.3 million will support agricultural productivity and marketing, expansion of trade and private enterprises, protection of natural resources and adaptation to climate change.
USAID Ethiopia is supporting over 100 projects throughout the country.
In addition to these bilateral agreements, the US government also is providing Ethiopia an additional $582.4 million for food assistance, the Productive Safety Net Program, and special initiatives to promote public health, education, food security, conflict resolution and governance, bringing USAID funding to Ethiopia to $812 million in 2010.
It was reported that the total US government assistance to Ethiopia in 2010 has increased to $983 million.
For College Students: Six Facts about the American Opportunity Tax Credit
There is still time left to take advantage of the American Opportunity Tax Credit, a credit that will help many parents and college students offset the cost of college. This tax credit is part of the American Recovery and Reinvestment Act of 2009 and is available through December 31, 2010. It can be claimed by eligible taxpayers for college expenses paid in 2009 and 2010.
Here are six important facts the IRS wants you to know about the American Opportunity Tax Credit:
- -This credit, which expands and renames the existing Hope Credit, can be claimed for qualified tuition and related expenses that you pay for higher education in 2009 and 2010. Qualified tuition and related expenses include tuition, related fees, books and other required course materials.
- -The credit is equal to 100 percent of the first $2,000 spent per student each year and 25 percent of the next $2,000. Therefore, the full $2,500 credit may be available to a taxpayer who pays $4,000 or more in qualifying expenses for an eligible student.
- -The full credit is generally available to eligible taxpayers who make less than $80,000 or $160,000 for married couples filing a joint return. The credit is gradually reduced, however, for taxpayers with incomes above these levels.
- -Forty percent of the credit is refundable, so even those who owe no tax can get up to $1,000 of the credit for each eligible student as cash back.
- The credit can be claimed for qualified expenses paid for any of the first four years of post-secondary education.
- -You cannot claim the tuition and fees tax deduction in the same year that you claim the American Opportunity Tax Credit or the Lifetime Learning Credit. You must choose to either take the credit or the deduction and should consider which is more beneficial for you.
Complete details on the American Opportunity Tax Credit and other key tax provisions of the Recovery Act are available at IRS.gov/recovery.
Major new energy issues are about to transform
Major new energy issues are about to transform still further the strategic balance of the Horn of Africa and the Red Sea, with foreseeable consequences for the global energy market over the coming decade. Soon-to-be-evident new wealth in the Red Sea/Horn of Africa region will transform the intensity of conflict there, which in turn will affect not only the region, but the world’s most important trading route: the Red Sea/Suez sea line of communication (SLOC). Read more: http://oilprice.com/Geo-Politics/Africa/Energy-and-Security-Issues-in-the-Red-Sea-Transforming-as-the-Age-of-Gas-Begins-in-Earnest.html
Ethiopian birr devalued, IMF welcomes move.
One US dollar =16.35 Eth Birr
By Barry Malone
ADDIS ABABA (Reuters) – The Ethiopian birr was devalued by 16.7 percent on Wednesday, according to exchange rates published on the central bank’s website, a move welcomed by the International Monetary Fund (IMF).
The birr was quoted by the National Bank of Ethiopia at a weighted average of 16.3514 against the dollar compared with 13.6284 on Tuesday. A central bank official confirmed the new rate but was not authorised to make further comment.
“The IMF welcomes this move given it will help bolster Ethiopia’s competitiveness,” IMF representative in Ethiopia, Sukhwinder Singh, told Reuters. “It will need to be supported by appropriate monetary policy.”
Last month, the government unveiled an ambitious five-year economic plan which targets average annual economic growth of 14.9 percent over the period and aims to end the Horn of Africa nation’s dependence on food aid.
Ethiopia is Africa’s biggest coffee exporter and the world’s fourth largest exporter of sesame. It is also one of Africa’s biggest potential markets — with a population of 80 million — and most of its people have no telephones or bank accounts.
The devaluation is the Horn of Africa nation’s fourth since January 2009. Devaluations can spur economic growth and reduce current account deficits to the extent they boost exports and discourage imports, although they carry the risk of importing inflation.
‘DEPRECIATION LIKELY TO CONTINUE’
“I think it’s related to the new five-year plan and a strategy of export promotion and import substitution,” Tewodros Mekonnen, an economist with local think tank, the Ethiopian Economic Association, told Reuters.
Obviously there’s a risk it could cause inflation. It will probably also boost foreign direct investment and remittances.”
Inflation in Ethiopia hit a high of 64.2 percent in July 2008.
After that peak, the government halted state borrowing and increased bank reserves to drive down the rate.
The country’s central bank also instructed private banks to restrict borrowing.
The inflation rate slowed to 5.7 percent in July.
“Years of high inflation have eroded the country’s export competitiveness, and the government has continually favoured sharp currency depreciations to counteract this,” Joseph Lake, an analyst at the Economist Intelligence Unit, told Reuters.
“Though inflation has eased in recent months, this pattern of currency depreciation is likely to continue. Low levels of foreign exchange reserves, and twin fiscal and current-account deficits will continue to put pressure on the currency,” Lake said.
The country — one of the world’s biggest recipients of foreign aid — is keen to attract foreign investment in agriculture and mineral exploration.
Ethiopia has operated a managed floating exchange rate regime since 1992.
