Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 09ADDISABABA1200, ETHIOPIA'S ECONOMIC SCRAMBLE FURTHER STIFLES PRIVATE

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09ADDISABABA1200.
Reference ID Created Released Classification Origin
09ADDISABABA1200 2009-05-21 14:16 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Addis Ababa
VZCZCXRO0085
PP RUEHROV
DE RUEHDS #1200/01 1411416
ZNR UUUUU ZZH
P 211416Z MAY 09
FM AMEMBASSY ADDIS ABABA
TO RUEHC/SECSTATE WASHDC 4837
INFO RUEPADJ/CJTF HOA PRIORITY
RUEAIIA/CIA WASHINGTON DC PRIORITY
RUEKDIA/DIA WASHINGTON DC PRIORITY
RUEWMFD/HQ USAFRICOM STUTTGART GE PRIORITY
RUEKJCS/JOINT STAFF WASHINGTON DC PRIORITY
RUEHLMC/MILLENNIUM CHALLENGE CORP  PRIORITY
RUCNIAD/IGAD COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
UNCLAS SECTION 01 OF 02 ADDIS ABABA 001200 
 
SIPDIS 
SENSITIVE 
 
DEPARTMENT FOR EEB/IFD/OMA - JWINKLER AND EEB/CBA - DWINSTEAD 
DEPARTMENT PASS TO U.S. PATENT AND TRADEMARK OFFICE - AMY COTTON 
USTR FOR PATRICK COLEMAN, CECILIA KLEIN, AND BARBARA GRYNIEWWICZ 
DEPT OF COMMERCE WASHDC FOR ITA BECKY ERKUL 
DEPT OF TREASURY WASHDC FOR REBECCA KLEIN 
 
E.O. 12958: N/A 
TAGS: BEXP ECON EFIN ETRD EINV EAGR ET
SUBJECT: ETHIOPIA'S ECONOMIC SCRAMBLE FURTHER STIFLES PRIVATE 
SECTOR 
 
REF: ADDIS ABABA 1015 
 
ADDIS ABAB 00001200  001.2 OF 002 
 
 
SENSITIVE BUT UNCLASSIFIED; BUSINESS PROPREITARY INFORMATION; NOT 
FOR INTERNET DISTRIBUTION 
 
SUMMARY 
------- 
 
1. (SBU) In hurried efforts to stabilize the economy, the Government 
of Ethiopia (GoE) has implemented policies that are destabilizing 
the private sector and investment climate.  Ethiopia has been trying 
to rein in the money supply, increase government revenue, and boost 
ailing foreign exchange reserves.  As an apparent part of these 
efforts, GoE officials are confiscating "excess" hard currency and 
Ethiopian Birr from travelers departing the airport and repeatedly 
shaking down local businesses for tax payments they supposedly owe. 
In the scariest turn of events, a British diplomat and another 
European were reportedly beaten up at the airport after refusing to 
hand over their cash.  The GoE has also taken on more formal 
measures in this effort to include instructing all banks to cease 
the acceptance of duty-free imported goods as loan collateral and to 
freeze all lending at current outstanding loan amounts. 
Additionally, foreign companies are facing significant delay in 
their repatriation of profits as the central bank is not allocating 
enough hard currency to this process (reftel).  These GoE actions 
are stifling private sector growth in an already tough business 
climate.  We assess that these restrictions will only deter 
desperately needed foreign investment.  END SUMMARY. 
 
DESPERATE TIMES CALL FOR DESPERATE MEASURES 
------------------------------------------- 
 
2. (SBU) Ethiopia's hasty approach to increase government revenue, 
boost foreign exchange reserves, and stem inflation appears to 
ignore long-term consequences.  For example, airport customs 
officials recently began a trend of confiscating any "excess" hard 
currency and Ethiopian Birr from departing travelers.  While the law 
prohibits taking more than USD 1000 without documentation of its 
origin and 200 Birr (USD 18) out of the country, this provision has 
long been ignored and airport officials have implemented it 
inconsistently.  Approximately seven U.S. Citizens have complained 
to post's Consular Section about excess cash seizures at the 
airport.  In the most disturbing news to date, in two separate 
incidents, a British diplomat and another European were recently 
beaten up at the airport for refusing to hand over their excess 
cash.  According to Embassy sources, the British Diplomat was 
carrying USD 5000.  It is unclear how much foreign currency was 
involved in the other incident or ultimately what type of injuries, 
if any, the travelers sustained from these alleged beatings. 
 
3. (SBU) On the business front, numerous local companies have 
reported to EconOffs that government officials from the Ethiopian 
Revenue and Customs Authority have repeatedly approached them 
stating that they owe additional taxes -- sometimes several years 
old -- despite presenting previously accepted audited financial 
statements.  It appears that companies paid their proper taxes and 
then the government keeps coming back to them saying they owe more 
and more based on little evidence.  For example, one local 
technology company reported to EconOff that the government informed 
it of about USD 30,000 in penalties and back taxes it owed for 
transactions that occurred two years ago.  Its justification for 
these back taxes appears to be based on transactions such as a 
computer that was sold at a 20% markup; however, the government now 
states that the company should have paid the tax on a 40% markup 
because that was more in line with the market price.  In addition, 
local companies informed EconOff that if companies protest this kind 
of "revaluation," the official would sometimes offer to let them pay 
a reduced amount if they agree to pay immediately. 
 
BANKS ORDERED TO RESTRICT LENDING 
--------------------------------- 
 
4. (U) On a more formal basis, the Ethiopian Revenue and Customs 
Authority issued a directive to all commercial banks to prohibit 
imported duty-free goods from being used as loan collateral and to 
collect immediately all loans issued under this duty-free incentive. 
 
ADDIS ABAB 00001200  002.2 OF 002 
 
 
 This directive was aimed at tightening the money supply and 
reducing inflation, but also ended up severely limiting the 
financing options of foreign-owned businesses and long-term 
investors.  Ethiopia affords Ethiopian Diaspora investors and 
exporters duty-free imports of machinery, vehicles, computers, 
appliances, etc. and many valuable assets have been imported under 
this duty-free incentive.  In the past, investors jumpstarted their 
new Ethiopian business or expanded current business by extending 
their line of credit with local banks.  Now, however, investors will 
be short on cash flow, as they will be forced to repay their 
previous obligations and not be able to use these duty-free imported 
assets as collateral for additional loans. 
 
5. (U) In other belt-tightening measures, the National Bank of 
Ethiopia (NBE, Ethiopia's central bank) issued a directive to all 
commercial banks on April 24 not to exceed current outstanding loan 
amounts.  Therefore, it has become extremely difficult for a 
business that has qualifying collateral to receive additional funds. 
The only scenario whereby a bank could extend a new loan is if the 
company or other clients have repaid a previous loan.  This lack of 
access to finance makes it nearly impossible for the private sector 
to grow and take on new endeavors.  In a final blow to foreign 
investors, the NBE is not allocating enough hard currency to banks 
to honor profit repatriation obligations (reftel).  Those foreign 
companies that want to get their money out are legally able to do 
so, but unable to do so in practice without significant or 
indefinite delay. 
 
COMMENT: BAD INVESTMENT CLIMATE GETS WORSE 
------------------------------------------ 
 
6. (SBU) The GoE surely has serious economic concerns to address; 
however, in the midst of economic chaos their actions are further 
stifling the private sector.  The private sector could contribute 
solutions to Ethiopia's economic challenges, but instead is facing 
roadblock after roadblock to increasing growth and strength.  These 
GoE actions add to the already difficult challenges businesses deal 
with in regards to telecommunications services, power supply, 
transport logistics, government preferences for state- and 
party-owned enterprises, and historical government regulation.  How 
much more can investors take?  The Ethiopian Diaspora has an 
emotional tie to Ethiopia as a marketplace, but other foreign 
investors do not.  In concert with other donors, we will continue to 
encourage the GoE to take a second look at these types of policies 
and realize their negative impact on potential foreign investment as 
well as the local private sector as a whole. 
 
YAMAMOTO