Business as usual for Allana Potash in Ethiopia after a Delicate Political Transition thanks to the Legacy of Meles Zenawi

Allana Potash (Allana, TSX: AAA) is set to become one of the largest potash producers in Africa thanks to its ongoing project in Ethiopia. Allana has taken advantage of Ethiopia’s policies to attract investment, which have enabled the country to record one of the highest economic growth rates in the world (11%, expected to continue until 2014).

However, Ethiopia’s Prime Minister Meles Zenawi, an essential figure in changing the way Ethiopia has been perceived in recent years, died on August 20, raising questions about the future of the country and of its policies. Political succession processes in Africa are typically tense and complex and offer little guarantee of policy continuity, given the strong personal character of leadership. Nevertheless, Ethiopia has made some radical changes in the past two decades under Zenawi’s leadership and his legacy will surely continue under his successor.
Zenawi has turned Ethiopia into one of the fastest growing economies in Africa. While Zenawi cannot be said to have been a democratic leader in the North American or European sense of the term, he should be praised for managing to turn Ethiopia, from one of the poorest countries in the world, to one of the fastest growing economies in Africa such that Ethiopia’s GDP has more than tripled during his rule.

One of Zenawi’s most effective strategies was to allow Ethiopia’s capital, Addis Abeba, to serve as the host for the headquarters of the African Union. This attracted considerable foreign investment from such countries as China, Turkey and India.

As a man, who continued to educate himself throughout his presidency, undertaking business and management courses, he encouraged education and invested heavily in school infrastructure and in the field of women’s rights. In 2008, the IMF stressed that Ethiopia’s economy has grown faster than any other non-oil exporting country in sub-Saharan Africa. Zenawi had a vision for a strong and prosperous Ethiopia and he aimed at taking a leadership role in the Horn of Africa region, political and economic.

While many challenges remain, under Zenawi, Ethiopia went a long way to shed its image of the famine stricken country that inspired the humanitarian aid concerts of the 1980’s challenging famine to one eager to welcome foreign investors in all sectors. More importantly, perhaps, the most significant aspect of Zenawi’s rule was witnessed on his very passing.

Unlike the tense and uncertain future that typically characterizes a succession of power in most Sub-Saharan African context, marked by violence and, in some cases, civil war, Meles Zenawi left a political legacy that has allowed for a smooth and peaceful transition of power to the (former) Deputy Prime Minister of Ethiopia, Haile Mariam Desalegn, who will serve officially as interim head of the government.

The Cabinet will remain intact as will Zenawi’s economic policies. In 2010, Zenawi’s Party, the Revolutionary Democratic Front of Ethiopia, won elections and it currently remains in control of Parliament. A continuity of Zenawi’s legacy shall include Ethiopia pursuing the Millennium Development Goals, attracting even more foreign direct investment, developing infrastructure, developing industry and doubling agricultural production.

The latter goal is perhaps the most important in a country such as Ethiopia, which suffers frequent droughts and food shortages, leading it to have import food. As a potash producer, Allana will likely play an important role in enabling Ethiopia to reach its goal of doubling food production.

Farmers there will start to adopt more advanced agricultural techniques, requiring the use of potash based fertilizers. Allana will also export potash in view of a sustained demand for mineral fertilizers worldwide.

African demand itself is expected to grow over the next decade and Allana has already targeted production at Dallol to begin before the end of 2014, starting at a capacity of 1 million metric tons of muriate of potash (MOP) per year. Allana estimates that Africa could use as much as one to two tons of potash a year, and tripling that amount into the next decade.

Allana has announced the discovery of high sylvinite (potash ore) mineralization in three holes around the Musley deposit at its Dallol project. Committed lenders have invested some USD$ 600 million so far thanks to commitments by Liberty Metals & Mining Holdings and the International Finance Corporation (IFC, a member of the World Bank group), which exceeds the company’s initial debt financing projections.

Allana should conclude the project debt financing for the project by late 2012 in order to begin construction in 2013. Initial production of about 1 million tons is expected to start in 2015, reaching peak levels in 2017. Allana will ship its potash through the tiny Republic of Djibouti, where a new port is being built in Tadjoura.

Allana will have its own terminal with unloading and storage facilities at the new port. The potash will be delivered to the port by truck along a new highway linking the Dallol project with the port, which is already under construction.

Views: 364

Tags: Allana, Business, Delicate, Ethiopia, Legacy, Meles, Political, Potash, Transition, Zenawi, More…a, after, as, for, in, of, thanks, the, to, usual

Comment

You need to be a member of Sodere Ethiopian News and Entertainment to add comments!

Join Sodere Ethiopian News and Entertainment

SodereTube Ethiopian News

Unbelievable Story in Ethiopia

Unbelievable Story in Ethiopia

Supporters of Indian Team Atlético de Kolkata show their love for Ethiopian player Fikru Tefera

Supporters of Indian Team Atlético de Kolkata show their love for Ethiopian player Fikru Tefera

Live radio show that saves marriage, prevent divorce and repair relationship

Live radio show that saves marriage, prevent divorce and repair relationship

Ethiopian illegal alien, Meseret Mulatu, arrested with unregistered gun Dec, 2012

Ethiopian illegal alien, Meseret Mulatu, arrested with unregistered gun Dec, 2012

Ethiopia - Dr. Kesete and Amb. Mufti on the plan to send health professionals to Ebola hit countries

Ethiopia - Dr. Kesete and Amb. Mufti on the plan to send health professionals to Ebola hit countries

SodereTube Comedy

Ethiopia Funniest Episode Betoch Part 75

Ethiopia Funniest Episode Betoch Part 75

Tamagne Show With Comedian Kibebew Geda 2014

Tamagne Show With Comedian Kibebew Geda 2014

I am sheep please vote for me funny election campaign

I am sheep please vote for me funny election campaign

Betoch Comedy Part 74

Betoch Comedy Part 74

Ethiopian artists compete and share funny stories

Ethiopian artists compete and share funny stories

Events

SodereTube Sport

Supporters of Indian Team Atlético de Kolkata show their love for Ethiopian player Fikru Tefera

Supporters of Indian Team Atlético de Kolkata show their love for Ethiopian player Fikru Tefera

Ghedion Zelalem on Arsenal U19 Vs Galatasaray U19 5-1 Goals & Full Highlight 01/10/2014

Ghedion Zelalem on Arsenal U19 Vs Galatasaray U19 5-1 Goals & Full Highlight 01/10/2014

Ethiopia to construct 30 thousand seat Gambela stadium with 375 mill birr ($19mil)

Ethiopia to construct 30 thousand seat Gambela stadium with 375 mill birr ($19mil)

Mali 2: 3 Ethiopia Goals - 2015 Africa Cup of Nations Qualifications

Mali 2: 3 Ethiopia Goals - 2015 Africa Cup of Nations Qualifications

Ethiopia vs Mali Goals, Highlights and Discussion about the game

Ethiopia vs Mali Goals, Highlights and Discussion about the game

የ ፌስቡክ ጓደኛዎን ወይም ከኢሜይሎ አድራሻ ዝርዝር ወደ ሶደሬ.ኮም ይጋብዙ። You can now invite your Facebook friends and people in your address book to Sodere. It takes less than a minute. http://sodere.com/main/invitation/new

EthiopianTube Music

Ethiopia - Funny Comment from Balageru idol judge Sofi - Anteneh Ferew

Ethiopia - Funny Comment from Balageru idol judge Sofi - Anteneh Ferew

Ethiopia - Sisay Senatayehu - Balageru Idol

Ethiopia - Sisay Senatayehu - Balageru Idol

Ethiopia - YeAbsera Moges - Balageru Idol

Ethiopia - YeAbsera Moges - Balageru Idol

Ethiopia - Woineshet Alebachew - Balageru Idol

Ethiopia - Woineshet Alebachew - Balageru Idol

Balageru Idol - Ehetnesh Fanta - Best singer among women

Balageru Idol - Ehetnesh Fanta - Best singer among women

Ethiopian Videos

Love Clinic - Women who cheat on their boyfriends

Love Clinic - Women who cheat on their boyfriends

My sweet memories of childhood - Eka Eka Chewata, Bale Ena Mist, Serg..

My sweet memories of childhood - Eka Eka Chewata, Bale Ena Mist, Serg..

Jossy In Z House Show Interview With Selam Tesfaye October 2014

Jossy In Z House Show Interview With Selam Tesfaye October 2014

How to Kiss a Lady The Art of Kissing Love Vaccination from Ethiopikalink Part 1

How to Kiss a Lady The Art of Kissing Love Vaccination from Ethiopikalink Part 1

I broke up with my girlfriend after I cheated. Now I am dating her sister. Would this love last?

I broke up with my girlfriend after I cheated. Now I am dating her sister. Would this love last?

Ethiopian news and video portal. Sign in create profile, share videos, upload picture, invite your friends and have fun.

All Idol Shows (Balageru, Coca cola...)

Ethiopia - Funny moment - Anteneh Ferew - Betwedke Betalfem

Ethiopia - Funny moment - Anteneh Ferew - Betwedke Betalfem

Ethiopia - Sisay Senatayehu - Balageru Idol

Ethiopia - Sisay Senatayehu - Balageru Idol

Ethiopia - Woineshet Alebachew - Balageru Idol

Ethiopia - Woineshet Alebachew - Balageru Idol

Ethiopia - Tesfachen Cultural Dance Group - Balageru Idol

Ethiopia - Tesfachen Cultural Dance Group - Balageru Idol

Ethiopia Balageru Idol - Mohamed Awel

Ethiopia Balageru Idol - Mohamed Awel

© 2014   Created by Sodere.

Badges  |  Report an Issue  |  Terms of Service