Ethiopia/ Eritrea Ethiopia/ Eritrea Border DisputeBorder Dispute

Presentation: Chief Presentation: Chief Directorate East AfricaDirectorate East Africa

Background to the border disputeBackground to the border dispute

• In 1998 war commenced between Ethiopia and Eritrea over the In 1998 war commenced between Ethiopia and Eritrea over the border, the town of Badme was a contentious issue.border, the town of Badme was a contentious issue.

• More than 80 000 people died during the 3 year war.More than 80 000 people died during the 3 year war.• The war ended in 2000 with the signing of the Algiers Agreement.The war ended in 2000 with the signing of the Algiers Agreement.• The Agreement made provision for the Ethiopia - Eritrea Boundary The Agreement made provision for the Ethiopia - Eritrea Boundary

Commission (EEBC) to be established.Commission (EEBC) to be established.• Both countries agreed to accept the Boundary Commission’s Both countries agreed to accept the Boundary Commission’s

findings as “final and binding”findings as “final and binding”• On 13 April 2002, the EEBC presented their findings and allotted On 13 April 2002, the EEBC presented their findings and allotted

Badme to Eritrea.Badme to Eritrea.• Ethiopia has called for the negotiations to be reopened whilst Ethiopia has called for the negotiations to be reopened whilst

Eritrea wants to EEBC decision to be implemented without delay.Eritrea wants to EEBC decision to be implemented without delay.

Ethiopia – Eritrea border impasseEthiopia – Eritrea border impasse

• The border impasse continues between Ethiopia and The border impasse continues between Ethiopia and EritreaEritrea

• Situation of “no war, no peace”.Situation of “no war, no peace”.• On 4 October 2005, Eritrea imposed a ban on UNMEE On 4 October 2005, Eritrea imposed a ban on UNMEE

flights over Eritrean airspace. flights over Eritrean airspace. • On 23 November 2005, resolution passed allowing for On 23 November 2005, resolution passed allowing for

sanctions to be implemented. sanctions to be implemented. • On 7 December 2005, Eritrea expelled all UN On 7 December 2005, Eritrea expelled all UN

peacekeepers from the United States, the European Union, peacekeepers from the United States, the European Union, Russia and Canada.Russia and Canada.

• UNMEE mandate extended to 30 September 2006UNMEE mandate extended to 30 September 2006• In May 2006, the UNMEE’s was reduced to 2300 troopsIn May 2006, the UNMEE’s was reduced to 2300 troops

Ethiopia – Eritrea Boundary CommissionEthiopia – Eritrea Boundary Commission

• The third round of talks scheduled for 15 June 2006, The third round of talks scheduled for 15 June 2006, postponed till 24 August 2006.postponed till 24 August 2006.

• Eritrea failed to attend because they believe the Boundary Eritrea failed to attend because they believe the Boundary Commission’s decision should be bounding.Commission’s decision should be bounding.

• The 37th meeting of the Military Coordination Commission The 37th meeting of the Military Coordination Commission (MCC) was held on 30 July 2006, in Nairobi, Kenya(MCC) was held on 30 July 2006, in Nairobi, Kenya..

• The Officer-in-Charge of the UNMEE expressed hope for The Officer-in-Charge of the UNMEE expressed hope for the speedy resolve of the impasse.the speedy resolve of the impasse.

• Both Ethiopia and Eritrea raised concern over the cut in Both Ethiopia and Eritrea raised concern over the cut in UNMEE personnel.UNMEE personnel.

• Eritrea called for increased international involvement in Eritrea called for increased international involvement in resolving the impasse.resolving the impasse.

Recent developmentsRecent developments

• On 8 August 2006, Ethiopian Brigadier General Kemal On 8 August 2006, Ethiopian Brigadier General Kemal Geltu, defected to Eritrea with 150 troops.Geltu, defected to Eritrea with 150 troops.

• Ongoing defections with both Ethiopia and Eritrea Ongoing defections with both Ethiopia and Eritrea sponsoring opposition movements in Asmara and Addis sponsoring opposition movements in Asmara and Addis Ababa respectively.Ababa respectively.

• Eritrea reintroduced travel restrictions on 1 June 2006, Eritrea reintroduced travel restrictions on 1 June 2006, including diplomats.including diplomats.

• Allegations that Eritrea has been supporting the Supreme Allegations that Eritrea has been supporting the Supreme Islamic Courts in SomaliaIslamic Courts in Somalia

• Ethiopia supporting the Transitional Federal Government in Ethiopia supporting the Transitional Federal Government in SomaliaSomalia

• Eritrea involves as peace broker between Government of Eritrea involves as peace broker between Government of Sudan and the Eastern Front RebelsSudan and the Eastern Front Rebels

Federal Democratic Federal Democratic Republic of EthiopiaRepublic of Ethiopia

Brief StatisticsBrief Statistics

• Population:Population: 74,777,981 (2006)74,777,981 (2006)• GDP: GDP: US$ 9 Billion (2005)US$ 9 Billion (2005)• GDP per Capita:GDP per Capita: US$116US$116• GDP growth rate:GDP growth rate: 8.9% (2005)8.9% (2005)• Inflation rate:Inflation rate: 11.6% (2005)11.6% (2005)• Military expenditure:Military expenditure: $295.9 million (2005)$295.9 million (2005) • Hunan Development Index:Hunan Development Index: Ranked 170Ranked 170th th (2003)(2003)• FDI:FDI: US$ 545.1 million (2004)US$ 545.1 million (2004)

Brief Statistics (continued)Brief Statistics (continued)

• External Debt: External Debt: US$ 5.101 billion (2005)US$ 5.101 billion (2005) • Main export partners:Main export partners: Germany, Japan, Saudi Germany, Japan, Saudi

Arabia, Djibouti, Italy, USAArabia, Djibouti, Italy, USA• Main import partners:Main import partners: Saudi Arabia, USA, Saudi Arabia, USA,

UAE, India, GermanyUAE, India, Germany• Life Expectancy:Life Expectancy: 49 years (2006)49 years (2006)

GeographyGeography

• Area:Area: 1,130,000 sq km 1,130,000 sq km • Borders:Borders: Djibouti, Eritrea, Kenya, Somalia, Djibouti, Eritrea, Kenya, Somalia,

SudanSudan• Natural resourcesNatural resources: : Small reserves of gold, platinum, Small reserves of gold, platinum,

copper, potash, natural gas, copper, potash, natural gas, hydropowerhydropower

• Agricultural ProductsAgricultural Products: : Coffee, khat, leather, gold, oilseeds Coffee, khat, leather, gold, oilseeds and flowers. and flowers.

• IndustriesIndustries:: food processing, beverages, food processing, beverages, textiles, leather, chemicals, textiles, leather, chemicals, metals processing, cementmetals processing, cement

Ethiopia: IntroductionEthiopia: Introduction

• Capital: Capital: Addis AbabaAddis Ababa• Head of State:Head of State: President WoldergiorgisPresident Woldergiorgis• Head of Government: Head of Government: Prime Minister Meles ZenawiPrime Minister Meles Zenawi• Form of State:Form of State: Federal StateFederal State• Official languages: Official languages: Amharic, Oromiya, Tigrinya, Amharic, Oromiya, Tigrinya,

ArabicArabic• Membership:Membership: AU (secretariat in Addis Ababa), AU (secretariat in Addis Ababa),

IGAD, IGAD, ComesaComesa

History and BackgroundHistory and Background

• Only African nation never colonisedOnly African nation never colonised• Brief Italian occupation from 1936-1941.Brief Italian occupation from 1936-1941.• Emperor Haile Selassie dominated Ethiopian society from Emperor Haile Selassie dominated Ethiopian society from

1916-1974.1916-1974.• The emperor was overthrown by the “Derg” regime, led by The emperor was overthrown by the “Derg” regime, led by

Mengistu Haile Miriam.Mengistu Haile Miriam.• The “Derg” regime was toppled by Meles Zenawi’s The “Derg” regime was toppled by Meles Zenawi’s

Ethiopian Peoples Revolutionary Democratic Front in 1991.Ethiopian Peoples Revolutionary Democratic Front in 1991.• Eritrea seceded from Ethiopia in 1993Eritrea seceded from Ethiopia in 1993

Recent Political DevelopmentRecent Political Development

• Last parliamentary elections held on 15 May 2005Last parliamentary elections held on 15 May 2005• The Ogaden National Liberation Front, Oromo Liberation Front and the The Ogaden National Liberation Front, Oromo Liberation Front and the

Sidama Liberation Front continue to seek autonomy from the Sidama Liberation Front continue to seek autonomy from the Federation.Federation.

• Border demarcation with Eritrea still outstanding.Border demarcation with Eritrea still outstanding.• Oppression of political parties is rife. Oppression of political parties is rife. • Ethiopian invasion of SomaliaEthiopian invasion of Somalia

Economy of EthiopiaEconomy of Ethiopia

• Unemployment rate:Unemployment rate: 25% to 30%25% to 30%• Major industries:Major industries: chemicals, metal, cement, chemicals, metal, cement,

textiles, food processing.textiles, food processing.• Major Exports:Major Exports: coffee, gold, leather products, coffee, gold, leather products,

oilseedsoilseeds• Major Imports:Major Imports: food, petroleum, machinery, food, petroleum, machinery,

motor vehicles.motor vehicles.

Social SituationSocial Situation

• HIV/Aids poses major health challenge.HIV/Aids poses major health challenge.• The government has developed the National Response Strategic The government has developed the National Response Strategic

Framework to combat HIV/AIDS. Framework to combat HIV/AIDS. • Food security remains a problem.Food security remains a problem.• The recent floods during August 2006 resulted in at least 626 The recent floods during August 2006 resulted in at least 626

deaths across Ethiopia.deaths across Ethiopia.

Bilateral Relations with South AfricaBilateral Relations with South Africa

• General Co-operation Agreement between Ethiopia and South was General Co-operation Agreement between Ethiopia and South was signed in March 2004.signed in March 2004.

• Joint Ministerial Commission (JMC) to be established in terms of Joint Ministerial Commission (JMC) to be established in terms of Co-operation Agreement.Co-operation Agreement.

• JMC senior officials meeting was held in Pretoria in May 2005.JMC senior officials meeting was held in Pretoria in May 2005.• Exports from SA to Ethiopia: R149, 797 million (2005)Exports from SA to Ethiopia: R149, 797 million (2005)• Exports from Ethiopia to SA: R23, 370 million (2005)Exports from Ethiopia to SA: R23, 370 million (2005)• Ethiopia not being full member of the World Trade Organisation Ethiopia not being full member of the World Trade Organisation

poses a challenge to the finalisation of a trade agreement with poses a challenge to the finalisation of a trade agreement with South AfricaSouth Africa

• Africon Ethiopia;Africon Ethiopia;• COMEZAR; COMEZAR; • Plessey;Plessey;• Bull Information Technology;Bull Information Technology;• Global Technology (Pty) Ltd;Global Technology (Pty) Ltd;• CSIR (Port Elizabeth);CSIR (Port Elizabeth);• South African Bottling Company (SABCO); South African Bottling Company (SABCO); • Ropack International;Ropack International;• Cortec (Pty) Ltd.Cortec (Pty) Ltd.

South African Companies in EthiopiaSouth African Companies in Ethiopia

Way ForwardWay Forward

• South Africa should continue to engage Ethiopia within the South Africa should continue to engage Ethiopia within the framework of the General Co-operation Agreement signed in 2004framework of the General Co-operation Agreement signed in 2004

• Launch of Joint Ministerial Commission planned for 2006Launch of Joint Ministerial Commission planned for 2006• Seek constructive ways of engaging the political leadership to Seek constructive ways of engaging the political leadership to

normalise relations with Eritrea. normalise relations with Eritrea.

State of State of EritreaEritrea

Presentation: Chief Directorate East Presentation: Chief Directorate East AfricaAfrica

Brief StatisticsBrief Statistics

• Population:Population: 4,786,994 (2006)4,786,994 (2006)• Gross Domestic Product:Gross Domestic Product: US$ 924.6 million (2004)US$ 924.6 million (2004)• GDP per capita: GDP per capita: $900 (2005)$900 (2005)• GDP growth rate:GDP growth rate: 2% (2005)2% (2005)• Inflation rate:Inflation rate: 15% (2005)15% (2005)• Military Expenditure:Military Expenditure: US$ 220.1 million (2005)US$ 220.1 million (2005)• Human Development Index:Human Development Index: Ranked 161Ranked 161th th (2003)(2003)• Foreign Direct Investment:Foreign Direct Investment: US$ 30.0 million (2004)US$ 30.0 million (2004)

Brief Statistics (continued)Brief Statistics (continued)

• External Debt:External Debt: US$ 695 millionUS$ 695 million• Main export partners:Main export partners: Sudan, Italy, Djibouti, Sudan, Italy, Djibouti,

GermanyGermany• Main import partners:Main import partners: United Arab Emirates, United Arab Emirates,

Saudi Arabia, Italy, Saudi Arabia, Italy, GermanyGermany

• Imports from South Africa:Imports from South Africa: R 25 547 000 (2005)R 25 547 000 (2005)• Exports to South Africa:Exports to South Africa: R 485 000 (2005)R 485 000 (2005)

GeographyGeography

• Area:Area: 124 320 sq km124 320 sq km• Borders:Borders: Djibouti, Ethiopia, SudanDjibouti, Ethiopia, Sudan• Natural Resources:Natural Resources: Oil, gas, fish and base Oil, gas, fish and base

metalsmetals• Agricultural Products:Agricultural Products: Wheat, barley, maize, Wheat, barley, maize,

millet, sorghummillet, sorghum• Industries:Industries: Food processing, Food processing,

beverages, clothing and beverages, clothing and textiles, salt, cement, textiles, salt, cement, commercial ship repaircommercial ship repair

Eritrea IntroductionEritrea Introduction

• Capital:Capital: AsmaraAsmara• Head of State:Head of State: Isaias AfewerkiIsaias Afewerki• Form of State:Form of State: Unitary StateUnitary State• Currency:Currency: Nakfa Nakfa • Member of following organisations: United Nations, African Member of following organisations: United Nations, African

Union, IGAD, Cotonou Convention, COMESA and the Union, IGAD, Cotonou Convention, COMESA and the League of Arab States.League of Arab States.

• The People’s Front for Democracy and Justice is the only The People’s Front for Democracy and Justice is the only legal political party operating in the country. legal political party operating in the country.

History and BackgroundHistory and Background

• 1998 border war between Ethiopia and Eritrea commenced.1998 border war between Ethiopia and Eritrea commenced.• War ended in 2000 in which 70 000 people died.War ended in 2000 in which 70 000 people died.• Despite the signing of the Algiers Agreement and the border Despite the signing of the Algiers Agreement and the border

commission decision reached, the border impasse continues.commission decision reached, the border impasse continues.

Economy of EritreaEconomy of Eritrea

• Exports: 64.5 million (2005)Exports: 64.5 million (2005)• Imports: 662 Million (2005) Imports: 662 Million (2005) • Agriculture sector employs 80% populationAgriculture sector employs 80% population• Privatization and free market is encouraged Privatization and free market is encouraged • Heavily dependent on Foreign Aid.Heavily dependent on Foreign Aid.• GDP per sectorGDP per sector Agriculture:Agriculture: 10.2% 10.2%

Industry:Industry: 25.4% 25.4% Services:Services: 64.3% (2005) 64.3% (2005)

Social SituationSocial Situation

• Eritrea has nine ethnic groups. Eritrea has nine ethnic groups. • Tigrinya and Arabic most frequently used languagesTigrinya and Arabic most frequently used languages• No tensions between Christians and Muslims.No tensions between Christians and Muslims.• HIV/Aids prevalence is about 2.87% HIV/Aids prevalence is about 2.87%

Technological SituationTechnological Situation

• Internet access available in most parts of the country.Internet access available in most parts of the country.• Railways and highways undergoing reconstruction.Railways and highways undergoing reconstruction.• Ports of Assab and Massawa operational.Ports of Assab and Massawa operational.• Telephone system inadequate Telephone system inadequate • Mobile cellular service available. Mobile cellular service available.

Bilateral Relations with South AfricaBilateral Relations with South Africa

• Diplomatic relations established in 1995Diplomatic relations established in 1995• Late Minister Nzo visited Eritrea in 1998Late Minister Nzo visited Eritrea in 1998• South Africa opened an Embassy in Asmara in October South Africa opened an Embassy in Asmara in October

20042004• 9 SANDF Officers currently deployed in Eritrea/Ethiopia as 9 SANDF Officers currently deployed in Eritrea/Ethiopia as

part of UN Mission in Ethiopia and Eritrea (UNMEE).part of UN Mission in Ethiopia and Eritrea (UNMEE).• More than 1600 Eritrean students studying at South African More than 1600 Eritrean students studying at South African

universities. universities.

Way ForwardWay Forward

• South Africa should continue to support diplomatic efforts by the South Africa should continue to support diplomatic efforts by the UN, AU and EU aimed at to resolving the the border impasse.UN, AU and EU aimed at to resolving the the border impasse.

• Continue to explore business opportunities Continue to explore business opportunities

The End The End Thank YouThank You