1. Ethiopia/ Eritrea Border Dispute Presentation: Chief Directorate East Africa

2. Background to the border dispute In 1998 war commenced between Ethiopia and Eritrea over the border, the town of Badme was a contentious issue.In 1998 war commenced between Ethiopia and Eritrea over the 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 Commission (EEBC) to be established.The Agreement made provision for the Ethiopia - Eritrea Boundary Commission (EEBC) to be established. Both countries agreed to accept the Boundary Commission’s findings as “final and binding”Both countries agreed to accept the Boundary Commission’s findings as “final and binding” On 13 April 2002, the EEBC presented their findings and allotted Badme to Eritrea.On 13 April 2002, the EEBC presented their findings and allotted Badme to Eritrea. Ethiopia has called for the negotiations to be reopened whilst Eritrea wants to EEBC decision to be implemented without delay.Ethiopia has called for the negotiations to be reopened whilst Eritrea wants to EEBC decision to be implemented without delay.

3. Ethiopia – Eritrea border impasse The border impasse continues between Ethiopia and EritreaThe border impasse continues between Ethiopia and Eritrea Situation of “no war, no peace”.Situation of “no war, no peace”. On 4 October 2005, Eritrea imposed a ban on UNMEE flights over Eritrean airspace.On 4 October 2005, Eritrea imposed a ban on UNMEE flights over Eritrean airspace. On 23 November 2005, resolution passed allowing for sanctions to be implemented.On 23 November 2005, resolution passed allowing for sanctions to be implemented. On 7 December 2005, Eritrea expelled all UN peacekeepers from the United States, the European Union, Russia and Canada.On 7 December 2005, Eritrea expelled all UN peacekeepers from the United States, the European Union, 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

4. Ethiopia – Eritrea Boundary Commission The third round of talks scheduled for 15 June 2006, postponed till 24 August 2006.The third round of talks scheduled for 15 June 2006, postponed till 24 August 2006. Eritrea failed to attend because they believe the Boundary Commission’s decision should be bounding.Eritrea failed to attend because they believe the Boundary Commission’s decision should be bounding. The 37th meeting of the Military Coordination Commission (MCC) was held on 30 July 2006, in Nairobi, Kenya.The 37th meeting of the Military Coordination Commission (MCC) was held on 30 July 2006, in Nairobi, Kenya. The Officer-in-Charge of the UNMEE expressed hope for the speedy resolve of the impasse.The Officer-in-Charge of the UNMEE expressed hope for the speedy resolve of the impasse. Both Ethiopia and Eritrea raised concern over the cut in UNMEE personnel.Both Ethiopia and Eritrea raised concern over the cut in UNMEE personnel. Eritrea called for increased international involvement in resolving the impasse.Eritrea called for increased international involvement in resolving the impasse.

5. Recent developments On 8 August 2006, Ethiopian Brigadier General Kemal Geltu, defected to Eritrea with 150 troops.On 8 August 2006, Ethiopian Brigadier General Kemal Geltu, defected to Eritrea with 150 troops. Ongoing defections with both Ethiopia and Eritrea sponsoring opposition movements in Asmara and Addis Ababa respectively.Ongoing defections with both Ethiopia and Eritrea sponsoring opposition movements in Asmara and Addis Ababa respectively. Eritrea reintroduced travel restrictions on 1 June 2006, including diplomats.Eritrea reintroduced travel restrictions on 1 June 2006, including diplomats. Allegations that Eritrea has been supporting the Supreme Islamic Courts in SomaliaAllegations that Eritrea has been supporting the Supreme Islamic Courts in Somalia Ethiopia supporting the Transitional Federal Government in SomaliaEthiopia supporting the Transitional Federal Government in Somalia Eritrea involves as peace broker between Government of Sudan and the Eastern Front RebelsEritrea involves as peace broker between Government of Sudan and the Eastern Front Rebels

6. Federal Democratic Republic of Ethiopia

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

9. Brief Statistics (continued) External Debt: US$ 5.101 billion (2005)External Debt: US$ 5.101 billion (2005) Main export partners:Germany, Japan, Saudi Arabia, Djibouti, Italy, USAMain export partners:Germany, Japan, Saudi Arabia, Djibouti, Italy, USA Main import partners: Saudi Arabia, USA, UAE, India, GermanyMain import partners: Saudi Arabia, USA, UAE, India, Germany Life Expectancy:49 years (2006)Life Expectancy:49 years (2006)

10. Geography Area: 1,130,000 sq kmArea: 1,130,000 sq km Borders: Djibouti, Eritrea, Kenya, Somalia, SudanBorders: Djibouti, Eritrea, Kenya, Somalia, Sudan Natural resources: Small reserves of gold, platinum, copper, potash, natural gas, hydropowerNatural resources: Small reserves of gold, platinum, copper, potash, natural gas, hydropower Agricultural Products: Coffee, khat, leather, gold, oilseeds and flowers.Agricultural Products: Coffee, khat, leather, gold, oilseeds and flowers. Industries:food processing, beverages, textiles, leather, chemicals, metals processing, cementIndustries:food processing, beverages, textiles, leather, chemicals, metals processing, cement

11. Ethiopia: Introduction Capital: Addis AbabaCapital: Addis Ababa Head of State:President WoldergiorgisHead of State:President Woldergiorgis Head of Government: Prime Minister Meles ZenawiHead of Government: Prime Minister Meles Zenawi Form of State:Federal StateForm of State:Federal State Official languages: Amharic, Oromiya, Tigrinya, ArabicOfficial languages: Amharic, Oromiya, Tigrinya, Arabic Membership:AU (secretariat in Addis Ababa), IGAD, ComesaMembership:AU (secretariat in Addis Ababa), IGAD, Comesa

12. History 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 1916-1974.Emperor Haile Selassie dominated Ethiopian society from 1916-1974. The emperor was overthrown by the “Derg” regime, led by Mengistu Haile Miriam.The emperor was overthrown by the “Derg” regime, led by Mengistu Haile Miriam. The “Derg” regime was toppled by Meles Zenawi’s Ethiopian Peoples Revolutionary Democratic Front in 1991.The “Derg” regime was toppled by Meles Zenawi’s Ethiopian Peoples Revolutionary Democratic Front in 1991. Eritrea seceded from Ethiopia in 1993Eritrea seceded from Ethiopia in 1993

13. Recent 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 Sidama Liberation Front continue to seek autonomy from the Federation.The Ogaden National Liberation Front, Oromo Liberation Front and the Sidama Liberation Front continue to seek autonomy from the 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

14. Economy of Ethiopia Unemployment rate: 25% to 30%Unemployment rate: 25% to 30% Major industries: chemicals, metal, cement, textiles, food processing.Major industries: chemicals, metal, cement, textiles, food processing. Major Exports: coffee, gold, leather products, oilseedsMajor Exports: coffee, gold, leather products, oilseeds Major Imports: food, petroleum, machinery, motor vehicles.Major Imports: food, petroleum, machinery, motor vehicles.

15. Social Situation HIV/Aids poses major health challenge.HIV/Aids poses major health challenge. The government has developed the National Response Strategic Framework to combat HIV/AIDS.The government has developed the National Response Strategic 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 deaths across Ethiopia.The recent floods during August 2006 resulted in at least 626 deaths across Ethiopia.

16. Bilateral Relations with South Africa General Co-operation Agreement between Ethiopia and South was signed in March 2004.General Co-operation Agreement between Ethiopia and South was signed in March 2004. Joint Ministerial Commission (JMC) to be established in terms of Co- operation Agreement.Joint Ministerial Commission (JMC) to be established in terms of 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 poses a challenge to the finalisation of a trade agreement with South AfricaEthiopia not being full member of the World Trade Organisation poses a challenge to the finalisation of a trade agreement with South Africa

17. 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 Ethiopia

18. Way Forward South Africa should continue to engage Ethiopia within the framework of the General Co-operation Agreement signed in 2004South Africa should continue to engage Ethiopia within the framework 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 normalise relations with Eritrea.Seek constructive ways of engaging the political leadership to normalise relations with Eritrea.

19. State of Eritrea Presentation: Chief Directorate East Africa

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

22. Brief Statistics (continued) External Debt:US$ 695 millionExternal Debt:US$ 695 million Main export partners:Sudan, Italy, Djibouti, GermanyMain export partners:Sudan, Italy, Djibouti, Germany Main import partners:United Arab Emirates, Saudi Arabia, Italy, GermanyMain import partners:United Arab Emirates, Saudi Arabia, Italy, Germany Imports from South Africa:R 25 547 000 (2005)Imports from South Africa:R 25 547 000 (2005) Exports to South Africa:R 485 000 (2005)Exports to South Africa:R 485 000 (2005)

23. Geography Area: 124 320 sq kmArea: 124 320 sq km Borders:Djibouti, Ethiopia, SudanBorders:Djibouti, Ethiopia, Sudan Natural Resources:Oil, gas, fish and base metalsNatural Resources:Oil, gas, fish and base metals Agricultural Products:Wheat, barley, maize, millet, sorghumAgricultural Products:Wheat, barley, maize, millet, sorghum Industries:Food processing, beverages, clothing and textiles, salt, cement, commercial ship repairIndustries:Food processing, beverages, clothing and textiles, salt, cement, commercial ship repair

24. Eritrea Introduction Capital: AsmaraCapital: Asmara Head of State: Isaias AfewerkiHead of State: Isaias Afewerki Form of State: Unitary StateForm of State: Unitary State Currency: NakfaCurrency: Nakfa Member of following organisations: United Nations, African Union, IGAD, Cotonou Convention, COMESA and the League of Arab States.Member of following organisations: United Nations, African Union, IGAD, Cotonou Convention, COMESA and the League of Arab States. The People’s Front for Democracy and Justice is the only legal political party operating in the country.The People’s Front for Democracy and Justice is the only legal political party operating in the country.

25. History 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 commission decision reached, the border impasse continues.Despite the signing of the Algiers Agreement and the border commission decision reached, the border impasse continues.

26. Economy 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 encouragedPrivatization and free market is encouraged Heavily dependent on Foreign Aid.Heavily dependent on Foreign Aid. GDP per sectorAgriculture: 10.2% Industry: 25.4% Services: 64.3% (2005)GDP per sectorAgriculture: 10.2% Industry: 25.4% Services: 64.3% (2005)

27. Social 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%

28. Technological 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 inadequateTelephone system inadequate Mobile cellular service available.Mobile cellular service available.

29. Bilateral 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 2004South Africa opened an Embassy in Asmara in October 2004 9 SANDF Officers currently deployed in Eritrea/Ethiopia as part of UN Mission in Ethiopia and Eritrea (UNMEE).9 SANDF Officers currently deployed in Eritrea/Ethiopia as part of UN Mission in Ethiopia and Eritrea (UNMEE). More than 1600 Eritrean students studying at South African universities.More than 1600 Eritrean students studying at South African universities.

30. Way Forward South Africa should continue to support diplomatic efforts by the UN, AU and EU aimed at to resolving the the border impasse.South Africa should continue to support diplomatic efforts by the UN, AU and EU aimed at to resolving the the border impasse. Continue to explore business opportunitiesContinue to explore business opportunities

31. The End Thank You The End Thank You