• The Afar region, the only passageway for humanitarian convoys bound for Tigray, is facing a serious food crisis due to the combined effects of the conflict in northern Ethiopia and drought in the Horn of Africa. AFP
    The Afar region, the only passageway for humanitarian convoys bound for Tigray, is facing a serious food crisis due to the combined effects of the conflict in northern Ethiopia and drought in the Horn of Africa. AFP
  • More than a million people need food aid in the region, the World Food Programme reported. AFP
    More than a million people need food aid in the region, the World Food Programme reported. AFP
  • Internally displaced people sit in a tent in a makeshift camp in the village of Erebti, Ethiopia. AFP
    Internally displaced people sit in a tent in a makeshift camp in the village of Erebti, Ethiopia. AFP
  • A new round of peace talks for Ethiopia led by the African Union's representative Olusegun Obasanjo is imminent, a senior US official has said. AFP
    A new round of peace talks for Ethiopia led by the African Union's representative Olusegun Obasanjo is imminent, a senior US official has said. AFP
  • The World Food Programme this week issued a warning that they will run out of food for Ethiopian refugees by October. AFP
    The World Food Programme this week issued a warning that they will run out of food for Ethiopian refugees by October. AFP
  • The Tigrayan People's Liberation Front agreed to a truce in return for the Ethiopian government providing indefinite humanitarian aid to the region. AFP
    The Tigrayan People's Liberation Front agreed to a truce in return for the Ethiopian government providing indefinite humanitarian aid to the region. AFP
  • Internally displaced people gather near Erebti, Ethiopia. AFP
    Internally displaced people gather near Erebti, Ethiopia. AFP
  • More than two million civilians have been internally displaced and 5.2 million people in Tigray are in urgent need of food, the UN says. AFP
    More than two million civilians have been internally displaced and 5.2 million people in Tigray are in urgent need of food, the UN says. AFP
  • Internally displaced woman carry blankets in the makeshift camp. AFP
    Internally displaced woman carry blankets in the makeshift camp. AFP
  • A member of the Afar militia takes a rest next to his weapon in the makeshift camp. AFP
    A member of the Afar militia takes a rest next to his weapon in the makeshift camp. AFP
  • Members of the Afar militia stand guard at a checkpoint near the town of Abala, Ethiopia. AFP
    Members of the Afar militia stand guard at a checkpoint near the town of Abala, Ethiopia. AFP
  • A convoy of lorries from the World Food Programme make their way to Tigray. AFP
    A convoy of lorries from the World Food Programme make their way to Tigray. AFP
  • USAID chief Samantha Power speaks during a joint press conference with Kenya's Public Service Cabinet Secretary Margaret Kobia in Nairobi. AFP
    USAID chief Samantha Power speaks during a joint press conference with Kenya's Public Service Cabinet Secretary Margaret Kobia in Nairobi. AFP
  • Ms Power promised aid to help avert famine in the Horn of Africa. AFP
    Ms Power promised aid to help avert famine in the Horn of Africa. AFP
  • Somalis who fled drought-stricken areas carry their belongings as they arrive at a makeshift camp on the outskirts of Mogadishu, Somalia. AP
    Somalis who fled drought-stricken areas carry their belongings as they arrive at a makeshift camp on the outskirts of Mogadishu, Somalia. AP
  • Molly Phee, Assistant Secretary of State for African Affairs. Photo: US Mission Photo
    Molly Phee, Assistant Secretary of State for African Affairs. Photo: US Mission Photo
  • Olusegun Obasanjo, special envoy of the African Union for the Horn of Africa, arrives at a gala dinner in Ethiopia. AFP
    Olusegun Obasanjo, special envoy of the African Union for the Horn of Africa, arrives at a gala dinner in Ethiopia. AFP
  • 'We are committed to supporting talks between the parties and we're hopeful that the AU High Representative for the talks in Ethiopia, former [Nigerian] president Obasanjo, will soon announce a location and a time for those talks,' Ms Phee. Reuters
    'We are committed to supporting talks between the parties and we're hopeful that the AU High Representative for the talks in Ethiopia, former [Nigerian] president Obasanjo, will soon announce a location and a time for those talks,' Ms Phee. Reuters
  • French President Emmanuel Macron welcomes Mr Obasanjo upon his arrival at the Elysee Palace in Paris, France. EPA
    French President Emmanuel Macron welcomes Mr Obasanjo upon his arrival at the Elysee Palace in Paris, France. EPA
  • Mr Obasanjo speaks during a panel discussion for the 2015 Global Education and Skills Forum at the UAE's Atlantis Conference Centre. Jeffrey E Biteng / The National
    Mr Obasanjo speaks during a panel discussion for the 2015 Global Education and Skills Forum at the UAE's Atlantis Conference Centre. Jeffrey E Biteng / The National
  • Secretary of State Antony Blinken is visiting Africa this week. Here, he visits the Kigali Genocide Memorial in Rwanda. AFP
    Secretary of State Antony Blinken is visiting Africa this week. Here, he visits the Kigali Genocide Memorial in Rwanda. AFP
  • Mr Blinken visits the genocide memorial in Kigali. Reuters
    Mr Blinken visits the genocide memorial in Kigali. Reuters

US expecting new round of Ethiopia peace talks to build on cessation of hostilities


Joyce Karam
  • English
  • Arabic

A new round of peace talks for Ethiopia led by African Union representative Olusegun Obasanjo is imminent, a senior US official said on Thursday.

Assistant Secretary of State for African Affairs Molly Phee said the talks could begin “soon".

“We are committed to supporting talks between the parties and we're hopeful that the AU High Representative for the talks in Ethiopia, former [Nigerian] president Obasanjo, will soon announce a location and a time for those talks,” she said.

Assistant Secretary of State for African Affairs Molly Phee. Photo: US Mission Photo
Assistant Secretary of State for African Affairs Molly Phee. Photo: US Mission Photo

The peace negotiations will build on the cessation of hostilities that was announced in March, leading to a pause in fighting in the two-year conflict between the government in Addis Ababa and the Tigray People's Liberation Front (TPLF).

Ms Phee, who accompanied US Secretary of State Antony Blinken on his trip to Africa this week, described the ceasefire in Ethiopia as “effective".

“There has been an effective cessation of hostilities with a so-called humanitarian ceasefire between the Ethiopian government and the forces of the TPLF that has held and that is really important,” she said.

The TPLF agreed to the truce in return for the Ethiopian government providing indefinite humanitarian aid to Tigray.

More than two million civilians have been internally displaced and 5.2 million people in the region are in urgent need of food, the UN says.

The Ethiopian government has also cracked down on militias accused of fomenting instability and has arrested more than 4,000 people in the past two months on suspicion of being linked to the Oromo Liberation Army and Al Shabab, it announced last week.

Trillions of locusts swarm across parts of Kenya, Somalia and Ethiopia, causing fear that the land on which livestock are dependent will be devastated. Getty Images
Trillions of locusts swarm across parts of Kenya, Somalia and Ethiopia, causing fear that the land on which livestock are dependent will be devastated. Getty Images

But the country is also suffering from a long-running drought that Ms Phee stressed has exacerbated the effects of the conflict.

On a trip to the Horn of Africa last month, USAID administrator Samantha Power said the organisation would provide about $1.3 billion to help combat regional drought and famine.

Meanwhile, other international organisations such as the World Food Programme this week issued a warning that they will run out of food for Ethiopian refugees by October.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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19% in UK say BBC is not biased at all

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The Bio

Favourite holiday destination: Either Kazakhstan or Montenegro. I’ve been involved in events in both countries and they are just stunning.

Favourite book: I am a huge of Robin Cook’s medical thrillers, which I suppose is quite apt right now. My mother introduced me to them back home in New Zealand.

Favourite film or television programme: Forrest Gump is my favourite film, that’s never been up for debate. I love watching repeats of Mash as well.

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Company name: Yeepeey

Started: Soft launch in November, 2020

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Updated: August 12, 2022, 6:13 AM