As the bloody conflict in Ethiopia’s northernmost Tigray region reaches a grim anniversary, the war shows no sign of slowing.
After reportedly capturing two strategic cities in a major motorway to the capital this week, Tigrayan forces said they were marching on the capital Addis Ababa to remove the government.
On Tuesday, Ethiopia declared a nationwide state of emergency and Prime Minister Abiy Ahmed has called for all citizens to stop what they were doing and take up any weapon they have.
The government has promised to fight to the end.
"The pit which is dug will be very deep," Mr Abiy told supporters at the military's headquarters in Addis Ababa on Wednesday.
"It will be where the enemy is buried, not where Ethiopia disintegrates. We will bury this enemy with our blood and bones and make the glory of Ethiopia high again."
Calls for a ceasefire by the US and international groups have gone unheeded.
The military commander of the Tigray Defence Force, Gen Tsadkan Gebretensae, this week said there would not be any negotiations.
“The war is on its very end," Gen Tsadkan said. "We have been expressing our consent for peaceful negotiation several times.
"But from now on with who are we going to negotiate for ceasefire? The war itself is ending. After all, Abiy’s regime is a war criminal responsible for crimes committed on Tigray.”
How did the Tigray conflict start?
The conflict began on November 3 last year, when Mr Abiy and allied Eritrean troops and regional forces from the Amhara region launched a military offensive to crush the regional government of Tigray.
The federal government accused the Tigray People's Liberation Front (TPLF), who run the region, of attacking a military base.
Almost two million people have fled their homes over the past year, and thousands have been killed.
With aid corridors and all basic services blocked to the war-ravaged region, more than 400,000 people in Tigray are facing famine and 1.8 million are on the brink, the UN has warned.
Government forces occupied the Tigray region for seven months since early December last year.
But in a major turnout on June 28, Tigray forces recaptured the regional capital, Mekelle and liberated much of the region from government forces.
Reports from Amnesty International and international media investigations suggest that acts of ethnic cleansing including massacres, sexual violence and torture of civilians have been committed by government forces during the months they occupied the region.
And allegations of atrocities by Tigray forces during their advance to Amhara and Afar regions have been reported.
The US State Department is preparing to expel Ethiopia from the African Growth and Opportunity Act, which grants participants in Sub-Saharan Africa duty-free access to the American market for thousands of products.
A joint investigation by the UN and the state-appointed Ethiopian Human Rights Commission, found all parties are implicated in atrocities.
But human rights groups, experts and independent journalists have criticised the report, claiming it underplays the atrocities in Tigray and omits even the most well-documented crimes.
David Crane, founder of the Global Accountability Network and founding chief prosecutor for the Special Court for Sierra Leone, an international tribunal, told AP the circumstances under which the report was formed were “automatically suspect."
“What you need when you go into an atrocity zone is a clean slate so outside investigators can look into it neutrally, dispassionately,” Mr Crane said.
“You want to do these things where you don’t build doubt, distrust from the beginning", including among people interviewed.
On the release of the report on Wednesday, UN rights chief Michelle Bachelet said there was a need for more investigation on the allegations of genocide in Tigray.
A failed ceasefire
Ethiopia’s government had declared a unilateral ceasefire shortly after its troops retreated from the Tigray region in early July.
The Tigray forces did not accept the ceasefire and increased their attacks on neighbouring regions of Amhara and Afar.
They claimed the advance was to open an aid corridor and put military pressure on the government to allow humanitarian access to Tigray.
Before the latest military gains, Tigray forces expressed willingness for a negotiated ceasefire, which the Ethiopian government rejected despite international pressure and threat of sanctions.
“We will not sit for negotiation with a terrorist group,” Mr Abiy has said.
In their statement for a negotiated ceasefire on July 4, the Tigray leaders set conditions that included the withdrawal of Amhara and Eritrean troops from border territories of Tigray, unimpeded access to humanitarian aid and the reinstatement of all services to the region.
I believe at this stage the Tigray forces will not accept any kind of negotiation that will secure the continuation of Abiy Ahmed’s regime
Kjetil Tronvoll,
Oslo New University College
Since June 29, the Tigray region has been in a siege-like condition, with the UN saying the region has been under a de facto government blockade, and only 10 per cent of humanitarian supplies needed were getting to the region.
In response to the statement, Ethiopia expelled seven higher UN officials, accusing them of meddling in internal affairs.
Kjetil Tronvoll, a professor of conflict studies at the Oslo New University College, said the unilateral ceasefire issued by the Ethiopian government failed because it was not a genuine truce, but a bid for time.
“The war on the ground had continued outside central Tigray and immediately the federal government imposed a full blockage cutting banking, transport, telecommunication and all other services, as well as humanitarian aid to Tigray,” Prof Tronvoll said.
“As proven afterwards, it was a way for the government to buy time to regroup militarily, to recruit new troops and purchase new arms to continue the war in a later phase.
"And I believe at this stage the Tigray forces will not accept any kind of negotiation that will secure the continuation of Abiy Ahmed’s regime.”
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One in nine do not have enough to eat
Created in 1961, the World Food Programme is pledged to fight hunger worldwide as well as providing emergency food assistance in a crisis.
One of the organisation’s goals is the Zero Hunger Pledge, adopted by the international community in 2015 as one of the 17 Sustainable Goals for Sustainable Development, to end world hunger by 2030.
The WFP, a branch of the United Nations, is funded by voluntary donations from governments, businesses and private donations.
Almost two thirds of its operations currently take place in conflict zones, where it is calculated that people are more than three times likely to suffer from malnutrition than in peaceful countries.
It is currently estimated that one in nine people globally do not have enough to eat.
On any one day, the WFP estimates that it has 5,000 lorries, 20 ships and 70 aircraft on the move.
Outside emergencies, the WFP provides school meals to up to 25 million children in 63 countries, while working with communities to improve nutrition. Where possible, it buys supplies from developing countries to cut down transport cost and boost local economies.
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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