Ethiopian Business Review

Why Converting Great Idea into Reality is Defficult for entrepreneurs in Ethiopia

Entrepreneurship is the process of designing, launching and running a new business, which is often initially a small one. The experiences of many successful countries reveal that when entrepreneurs create new businesses, they, intensify competition, and even increase productivity through technological change. This high level of entrepreneurship, in turn, translates directly into high levels of economic growth. Despite this fact, the level of entrepreneurship remains insignificant in Ethiopia. EBR’s Ashenafi Endale explores why it remains undeveloped in Ethiopia. 

Wednesday, 01 August 2018 19:24
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Ever since the Food, Medicines & Healthcare Administration and  Control started implementing a new rule that requires the inspection of 18 food items, such as pasta, noodles and edible oil, imported into the country, businesses are crying foul over the surge in laboratory cost. The new measures, which are said to be part of the Authority’s five-year plan, forces importers to wait weeks in order to get test results, as well as raising the cost of laboratory tests. For a single 20-foot container, the cost of testing has increased by an average of 14pct, reaching as high as 100Pct, depending on the nature and type of imported food items. This has discouraged many importers and supermarket owners engaged in the wholesaling and retailing of food products. EBR’s Samson Berhane spoke to retailers, importers and government officials to explore the issue. 

Wednesday, 01 August 2018 19:24
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The agriculture sector in Ethiopia is dominated by small holder farms that depend on rain. However, low and erratic rainfall has resulted in limited agricultural productivity and food security. To reverse this state of affairs, the government adopted the development of irrigation farms as a key strategy. But not much change has been observed in expanding irrigation. As of now, only 2.6 million hectares of land have been irrigated so far, out of 15 million hectares cultivated by small scale farmers. The use of irrigation in medium and large scale farming is also insignificant. EBR’s Ashenafi Endale spoke to commercial and small scale farmers as well as government officials, to shed light on the issue

Friday, 06 July 2018 16:18
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The Struggle of medium Enterprises to Graduate to the Next level

With a plan of spurring economic growth, and creating huge employment opportunities, it has been almost 12 years since the government adopted a strategy to develop medium, small and micro enterprises. Close to a million such enterprises have been formed since then. Nonetheless, their efficacy has not always been in line with the plan outlined in the strategy, due to multifaceted barriers. This holds true especially for medium enterprises that graduated before 2015/16, because of a lack of relevant policy and institutional structures. EBR’s Ashenafi Endale, reports.

Friday, 06 July 2018 15:55
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Companies can use all the five promotion mixes: sales promotion, advertising, personal selling, public relation and direct marketing. In recent years, commercial banks in Ethiopia have been using sales promotions in the form of prize linked saving and remittance lottery programmes to reach out to customers.Although the strategy appears to be effective for some banks, its impact in helping commercial banks unleash their full potential is debatable. EBR’s Samson Berhane reports.

Sunday, 03 June 2018 13:49
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What goes up doesn't always come down

Since August 2017, the general year-on-year inflation has ballooned, exacerbated by a devaluation that came into the picture last October. In similar manner, food inflation has been severe and reached 19.9 Pct last month. The rapid rise of food price, on the other hand, highly affects urban wage earners living on limited and fixed incomes. EBR’s Samson Berhane investigates the issues behind it. 

Thursday, 17 May 2018 06:00
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Is the youth fund a viable solution to tackle unemployment?

Youth unemployment has been a pressing issue for the government of Ethiopia for a long time, but at no other time has it become such an issue of national concern. The glut of graduates from rapidly spreading higher education institutions, coupled with the lack of jobs in both rural and urban areas has contributed to the rising political instability in all regions, leading to injury, property destruction and even death. To try and address the problem, the President of Ethiopia, Mulatu Teshome, (PhD) announced an ETB 10 billion revolving youth fund to help youths create their own opportunities. However, the administration and disbursement of the fund has not been as expected in Addis. EBR’s Samson Berhane looks at the reasons behind the underperformance.

Wednesday, 16 May 2018 12:00
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The horrific reality facing patients

Patients with critical illnesses are finding themselves in serious predicaments after the recurring foreign currency shortage began to affect the manufacture and import of medicines. Families are being increasingly forced to turn to unregulated informal market sources to find life-saving medicine now, even as importers and health institutions look for solutions to the problem. However, it may be easier said than done. EBR’s Ashenafi Endale explores the causes of the shortage and what awaits patients in the future.

Sunday, 15 April 2018 15:00
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Since October 2017, the National Bank of Ethiopia (NBE) made a series of monetary policy adjustments such as devaluating the local currency, increasing the interest rate, and introducing a credit ceiling on commercial banks in an attempt to sustain the economic growth achieved in the last decade. However, the policy alterations have had mixed outcomes. Investors, especially those engaged in the service sector, complain about the lack of available credit, which they say worsened after the NBE made the policy changes. On the other hand, the banking industry continues to perform better despite challenges. EBR’s Samson Berhane investigates the different impacts of the monetary policy implemented in recent months.

Sunday, 15 April 2018 06:00
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In the first six months of the current fiscal year, the Ethiopian Revenue and Customs Authority (ERCA) collected ETB90.8 billion, which is 83Pct of the target set for the period and 39.5Pct of the target set for the current fiscal year. Officials stress that a growing number of taxpayers are declaring losses or no income on their annual income tax report and Value Added Tax (VAT) refund. Businesses argue that this is due to the slowdown of economic activities attributable to the scarcity of foreign currency, and recent political unrest in the country. Several companies claim that their sales turnover is declining while overhead costs rise, ultimately affecting their capacity to pay taxes. EBR’s Ashenafi Endale explores the situation. 

Thursday, 15 March 2018 09:00
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