VZCZCXRO3512
PP RUEHROV
DE RUEHDS #2299/01 2671443
ZNR UUUUU ZZH
P 241443Z SEP 09
FM AMEMBASSY ADDIS ABABA
TO RUEHC/SECSTATE WASHDC PRIORITY 6284
INFO RUCNIAD/IGAD COLLECTIVE PRIORITY

UNCLAS SECTION 01 OF 03 ADDIS ABABA 002299 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR S/GPI, S/P, AF/E 
PASS TO AID 
 
E.O. 12958: N/A 
TAGS: OIIP SCUL SMIG PGOV BEXP BTIO EAID OEXC PHUM PREL
TSPL, EINV, ET 
SUBJECT: EXPERIENCE ENGAGING THE ETHIOPIAN DIASPORA 
 
REF:  STATE 86401 
 
¶1. (SBU) Per reftel, Embassy Addis Ababa compiled experiences 
engaging the Ethiopian diaspora community from relevant agencies at 
post.  Post's point of contact for future submissions is 
Political/Economic Officer Skye Justice (justicess@state.gov). 
Responses to specific reftel questions follow: 
 
A) To what extent are diasporans from your host country an 
identifiable community?  Are there existing diaspora networks, 
organizations or online communities available as platforms for 
outreach? 
 
There are two million estimated members of the Ethiopian diaspora 
worldwide, with as many as one million of those living in North 
America.  Sizeable, well-organized diaspora communities are present 
in many larger U.S. cities.  Both formal and informal networks are 
common, with some focused primarily on shared cultural and religious 
heritage, and others focused on business networks or political 
interests. 
 
From a political and business perspective, there are at least four 
clearly identifiable sub-groups within the Ethiopian diaspora in the 
U.S.:  1) politically-active supporters of the current Ethiopian 
government (GoE); 2) a politically-active opposition to the current 
GoE; 3) apolitical, pro-business insiders (notably in Seattle and 
Los Angeles) likely to return to and invest in Ethiopia; and 4) an 
apolitical group interested in returning who might invest, but are 
less business-oriented. 
 
Various newsletters, radio programs, and websites target the 
Ethiopian diaspora and promote connections within the community. 
Many of these actively reach out to residents of Ethiopia as well; 
some are censored by the GoE for political reasons. 
 
B) What is the nature of the connection of the diaspora community to 
the host country?  Examples include kinship networks; educational or 
other institutional ties; financial support as from remittances; and 
direct participation in community or country affairs and civil 
society. 
 
Ethiopian diasporans commonly connect through kinship and ethnic 
networks.  Educational and professional societies (e.g., 
associations of Ethiopian physicians and attorneys) are present, if 
less common.  The National Bank of Ethiopia estimates that private 
diaspora remittances totaled USD 1.8 billion for the 2008 fiscal 
year, representing an important source of desperately-needed foreign 
exchange.  Many diasporans are involved in charitable or civic 
outreach to their communities in Ethiopia; family- and 
community-based outreach is more common than more formal civil 
society organizations.  Many diasporans pay close attention to, or 
are involved in, Ethiopian politics. 
 
C) To what extent has your host country or government activated its 
diaspora communities for humanitarian relief?  How would you 
characterize the level of response?  If outreach is relatively 
recent, do you foresee opportunities to maintain diaspora community 
involvement in country over the long term? 
 
Large-scale, organized humanitarian activity has not been pursued by 
either the GoE or the Ethiopian diaspora community.  However, 
diasporans support their relatives and local communities in Ethiopia 
in many ways.  While the potential for further support is 
significant, diasporans are more likely to donate to charities or 
sub-national groups, rather than the GoE. 
 
D) To what extent is the diaspora community engaged in 
long-term investment in country, for example micro-enterprise 
development, job creation, entrepreneurship, and institutional 
capacity building? What is post's assessment of the future potential 
for long-term and sustained engagement of the diaspora community in 
such efforts? 
 
Members of the diaspora play a major role in Ethiopia's economy. 
Direct investment in construction, manufacturing, and agro-business 
is significant and continues to grow.  There is enormous potential 
for long-term and sustained engagement of the diaspora community in 
investment, including in relatively under-developed sectors of the 
economy such as tourism and trade in services. 
 
E) To what extent is the diaspora community working toward 
scientific, engineering, medical and educational institution 
building?  How might diasporans with backgrounds in these fields or 
otherwise affiliated with the Academy, or professional and technical 
societies, become engaged in science diplomacy programs? 
 
Many highly-skilled diasporans (including many trained in Ethiopia) 
work in medical, scientific, and academic fields abroad.  There are 
 
ADDIS ABAB 00002299  002 OF 003 
 
 
a few initiatives to tap into this knowledge-base.  For example, 
Addis Ababa University recruits members of the diaspora to return to 
Ethiopia and teach intensive university-level courses in their field 
of expertise for one month, providing for travel and accommodation, 
as well as a small stipend. Such initiatives operate on a small 
scale, without organized outreach.  There is clearly potential for 
expansion of these programs.  Limited job opportunities, very low 
salaries, and a poor investment climate in Ethiopia are deterrents 
to return for many diasporans, and political considerations also 
play a role. 
 
F) To what extent is the diaspora community engaged in 
conflict resolution and peace building? Do you see future potential 
to translate diaspora community participation in these processes 
into other priorities governing the bilateral (and/or regional) 
relationship? 
 
Ethiopian diaspora engagement in conflict resolution activities has 
been very limited.  One major exception is the group of diasporans 
who returned to help end the conflict surrounding the 2005 
elections, noted below. 
 
G) To what extent is the diaspora community engaged in 
meeting the health, education and welfare needs of indigenous 
peoples? 
 
As noted above, many highly-skilled Ethiopian professionals reside 
outside the country.  However, the number of returnees to Ethiopia 
with engineering and medical degrees and experience has increased. 
For example, there have been several missions in Ethiopia conducted 
by diasporan doctors who performed medical operations in 
collaboration with local hospitals.  And two of post's 2010 U.S. 
Fulbright scholars are Ethio-Americans engaged in hydrology and 
environmental engineering studies and projects in Ethiopia. 
 
H) To what extent is the diaspora community engaged in 
democracy promotion, electoral reform and civil society development? 
 Are there key milestones in your host country or host government's 
development that would create opportunities for such engagement in 
the future? 
 
Many diasporans are involved, or attempt to be involved, in 
advancing political reform.  Diasporans who belong to the political 
opposition play the role of spoilers, and the GoE actively attempts 
to restrict their involvement in political matters in Ethiopia. 
Opposition parties and sub-national movements (some deemed 
terrorists by the GoE), such as the Oromo Liberation Front and 
Ginbot 7, maintain offices abroad.  Conversely, the effort of a 
small group of diasporans was strongly felt during the national 
crisis after the election of 2005, when diaspora leaders 
collaborated with local elders to contribute to national 
reconciliation.  Positive engagement is more common at the personal, 
rather than party level. 
 
I) How would you characterize the level of concern and 
attention given to diaspora communities by your host 
government?  If applicable, please describe the host 
government's organization and strategy dedicated to 
relationship-building with its diaspora communities. For example, 
host governments may have established promotion offices to encourage 
diasporans' return, bringing with them know-how and financial 
resources. 
 
Ethiopia's Ministry of Foreign Affairs established a Directorate for 
Ethiopian Expatriate Affairs (EEA) in 2002.  The EEA provides the 
following incentives for diasporans to return to invest in 
Ethiopia: 
 
-- Tax and customs free rights given for returnees. 
 
-- Issuance of urban land for the construction of residential 
buildings for those organized in housing cooperatives free of 
charge. 
 
-- Under proclamation 270/2002, foreign nationals of Ethiopian 
origin are treated as Ethiopian citizens in matters of investment. 
(Note:  Because Ethiopia does not recognize dual citizens, 
diasporans who attain foreign citizenship are stripped of their 
Ethiopian citizenship.  End note.) 
 
-- Foreign currency accounts. 
 
In addition, the Ethiopian Embassy in Washington, DC maintains an 
office solely dedicated to outreach to the Ethiopian diaspora in the 
U.S.  This office has particularly targeted the sub-group Post 
identifies as apolitical and interested in returning, who might 
invest but are less business-oriented. 
 
 
ADDIS ABAB 00002299  003 OF 003 
 
 
J) If post has undertaken programs to reach out proactively to 
diaspora community members, please share the circumstances that 
prompted the outreach effort, how outreach was conducted or 
programmed, personal impressions from the experience, and 
benefits from the outreach effort. 
 
USAID currently funds the VEGA-Ethiopia AGOA Plus Project, which 
provides basic services to the diaspora community looking for 
investment opportunities within the country. The recently launched 
Diaspora Direct Investment (DDI) project under USAID's Development 
Credit Authority (DCA) program provides assistance to Ethiopians 
looking for loan services from local banks. The project leverages 
investment finance by way of sharing 50 percent of collateral 
requirement of the local banks for lending to diaspora investors. In 
addition, the project provides loan packaging services that include 
business plan improvements and assisting with documentation 
requirements for loan approval. 
 
The USAID/VEGA-Ethiopia project also serves as a contact point for 
diaspora members seeking various information such as investment 
opportunities, trade and investment policies, rules, regulations, 
and procedures for doing business.  The program conducted several 
diaspora Investment Forums both in Ethiopia and in the U.S. in 
collaboration with members of the diaspora and Ethiopian Embassy in 
the U.S.  To sustain diaspora community engagement, there is a 
proposal to establish a one-stop-shop service center for diaspora 
networks and associations. 
 
The Embassy's Public Affairs Section (PAS) also makes use of 
diaspora representatives in outreach programs.  Each year, several 
of post's U.S. Fulbright Scholars are U.S. citizen diasporans.  PAS 
taps them to speak to students and other groups about their American 
experience, as well on subjects of their own professional or 
academic expertise. 
 
K) If post has received unsolicited requests from the 
diaspora community, please share the nature the requests, the 
considerations post took into account in formulating respective 
responses, and the outcomes of interaction. 
 
PAS recently received a proposal from, and provided a grant from 
existing funds to, the Association of Ethiopian Alumni of American 
Universities to research and hold a workshop on the role of the 
diaspora in developing the Ethiopian economy.  PAS also recently 
provided support to an Ethio-American who is opening a school of art 
and design in Addis Ababa.  Both are examples of positive 
interactions between the Embassy and the diaspora community.  In 
other instances, PAS has received proposals that are not fully 
developed, and has worked with diasporans to improve their 
proposals.  Even when such proposals cannot be funded, PAS gains 
valuable insight from the ideas generated by the Ethio-American 
diaspora. 
 
Occasionally, USAID/Ethiopia receives unsolicited proposals from 
diaspora.  Unsolicited proposals in general are very rarely funded, 
as the USAID budget is earmarked and otherwise planned and approved 
well in advance of receipt of funds, with few discretionary funds. 
 
 
L) To what extent has post designed or participated in public 
diplomacy programs customized to diaspora community needs and 
interests? Does post anticipate taking advantage of such 
opportunities in the future? 
 
After the 2005 elections, PAS brought an Ethio-American with 
expertise on the U.S. government to Ethiopia through the U.S. 
Speakers Program to present a series of lectures on democracy and to 
meet with ruling party and opposition leaders.  The visit was 
successful, and PAS brought the same visitor back in 2006 to conduct 
a workshop with high school teachers on ethics. 
 
MEECE