At least 45 people died in clashes between Ethiopia’s army and the separatist Ogaden National Liberation Front in the east of the country, government and rebel spokesmen said.
The ONLF said its ethnic Somali fighters killed 140 Ethiopian soldiers and allied militia members in battles over the past five days near the towns of Fik and Degehebur, according to an e-mailed statement from the group. In addition, 29 ONLF members died in the fighting, it said.
“The area around Degehebur is now completely in the hands of the ONLF, as is the area around the city of Fik,” it said.
Ethnic Somali rebels from the ONLF are seeking autonomy for Ethiopia’s Somali region, an arid tract of land twice the size of England, which is also known as the Ogaden. In June, New York-based Human Rights Watch accused the Ethiopian government of burning villages, executing civilians and raping women in an effort to quell the ONLF’s insurgency. Ethiopia denied the allegations.
Ethiopia’s government disputed the ONLF’s version of the latest fighting.
“This is completely wrong,” Ermias Legesse, Ethiopia’s state minister for communications, said in a phone interview today from Addis Ababa, the capital. “The regional peoples fought with the ONLF and they killed more than 45 ONLF soldiers.”
Legesse said three or four innocent people died in the fighting. He said he couldn’t respond to an ONLF claim that Ethiopian attack helicopters have been active in the region.
Opposition
Ethiopia claimed the Ogaden region in the late 19th century through a series of agreements with Italy and the U.K., which colonized much of modern-day Somalia. Ethnic Somalis from the Ogaden clan have opposed Ethiopian rule, and fighting in the region surged after the ONLF killed 73 Chinese and Ethiopian workers at an oil exploration site in the region in April 2007.
Ethiopia accuses neighboring Eritrea of backing the ONLF and has in turn backed Somali militias from rival clans to fight the rebel group.
Ethiopia has banned journalists from traveling independently in the region and rejected a United Nations call for an independent assessment of human rights atrocities.
ADDIS ABABA (Bloomberg) — Ethiopia will pursue membership of the World Trade Organization, though it has no plans to liberalize its telecommunications and financial-services industries to gain access, Trade Minister Girma Birru said.
Ethiopia is currently fielding questions about its trade policies from countries including the U.S. and Canada, as it attempts to negotiate entry into the global trade regime, Birru said in an interview on Feb. 17 in the capital, Addis Ababa.
The Horn of Africa nation, twice the size of Texas and with a population of 82.5 million, applied for membership of the Geneva-based trade arbiter in 2003. The country is counting on membership to open new markets to boost its $25.1 billion economy.
“Primarily we will join the WTO not to make others happy, but to make our economy work,” Birru said. “So to the extent it helps our economy we will liberalize things, but if it’s not going to assist our goals in trade and development we will not liberalize. Why do we have to?”
The country’s protected telecom and financial industries will be points of contention in the talks with WTO-member countries including the United States and United Kingdom, Tewodros Mekonnen, a researcher with the Ethiopian Economic Association, said in a phone interview on Feb. 19.
“I don’t see any plan” to break up or sell Ethiopian Telecommunications Corp. to private investors, Birru said. “If there are some problems it has nothing to do with ownership. It has only to do with management. Management and ownership don’t necessarily go together.”
Private Investors
Ethiopia has resisted pressure from the World Bank and trade partners like the U.S. to sell the telecommunications company to private investors.
Ethiopian Telecommunication’s monopoly enables it to charge $35 for a mobile-phone SIM card, which is required to obtain a mobile-phone number. In neighboring Somalia and Kenya, which have private mobile services, cards cost less than $5.
A 1-megabyte per second Internet connection costs more than $2,000 a month in Ethiopia. In South Africa, the continent’s biggest economy, a similar service costs between 600 rand ($59) and 760 rand, according to the http://www.mybroadband.co.za Web site.
“In Ethiopia, if there is any problem I don’t think it’s the price,” said Birru. “It’s the quality of the service. This has to be improved. And to improve this I don’t think it would be wise to privatize it.”
Ethiopia’s government is reluctant to sell the company because it is profitable and is expanding services to rural areas, Newai Gebre-Ab, Prime Minister Meles Zenawi’s top economic adviser, said yesterday in an interview.
Cash Generator
The company is “generating a lot of money and that money is being put to good use for development of infrastructure,” Gebre- Ab said.
Birru also said the Ethiopian central bank lacks the capacity to regulate large foreign financial institutions. The country is also unsure whether foreign banks would play a positive economic role in the country. As a result, the country is unlikely to liberalize the financial-services industry.
“At this stage, given the capacity that we have in terms of managing things and supervising them at the National Bank level, I don’t see why we’d allow that,” he said.
Ethiopia’s three state-run retail banks control about two- thirds of the capital in the country’s banking industry, according to the National Bank of Ethiopia. Until last year, no bank in Ethiopia could process MasterCard transactions. Banks in the country are also reluctant to lend to businesses that cannot provide real estate as collateral.
—
To contact the reporter on this story: Jason McLure in Addis Ababa via Johannesburg at [email protected].
