Ethiopian Business Review

Steep rental fees are making it tough for prominent and fast-growing private banks to expand their enterprise. Strict regulations and increasing rental fees highlight the difficulty that private banks face in trying to grow the number of branches they operate throughout the country. EBR’s Samson Hailu explores the reasons why this problem has come about and what should be done to solve it. 

Friday, 15 August 2014 03:00
Published in Economy & Finance
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As Ethiopia’s restaurant and hospitality industries continue to grow and many European cuisines flourish in main streets of Addis Ababa, the mushroom business is taking root. One can easily witness this from the new trend of advertisements about mushroom almost everywhere. Posted on billboards, electric or telecom polls, and walls and sometimes in the form of leaflets distributed by young boys in the busy streets of the Addis Ababa, information about mushroom products and market access is reaching the public in large numbers. Several companies have also been established recently to produce and collect mushrooms from producers to supply for restaurants, cafeterias and supermarkets.

Friday, 15 August 2014 00:00
Published in Investment
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Steep rental fees are making it tough for prominent and fast-growing private banks to expand their enterprise. Strict regulations and increasing rental fees highlight the difficulty that private banks face in trying to grow the number of branches they operate throughout the country. EBR’s Samson Hailu explores the reasons why this problem has come about and what should be done to solve it. 

Friday, 15 August 2014 00:00
Published in Economy & Finance
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Although expanding access to commercial credit is a key ingredient of development strategies, private businesses in Ethiopia find it increasingly difficult to access loans.  As a result, starting new businesses or expanding existing ones is becoming an out of reach issue.

The situation is pushing businesses aspiring expansions to look for other options of financing. Capital injection in the form of bringing new shareholders, loaning from families and friends are becoming the  alternatives.

Wednesday, 16 July 2014 03:00
Published in Economy & Finance
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On a hot Thursday afternoon, May 22, 2014, Assefa Mandefro, 60, a carpenter who builds traditional houses and decorates them using local materials, was busy completing a traditional restaurant and night club in the Gerji area of Addis Ababa. He rushes and gives orders shouting at his associates to meet his schedule of finishing the project and make it ready by the end of June.

Wednesday, 16 July 2014 03:00
Published in Investment
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With the inauguration of Ethiopia’s largest cement plant, Derba Midroc Cement PLC in February 2012 and the expansion of Mugher and Messebo Cement Factories, the hyper- inflated cement market entered into a cutthroat price competition. Although the price of cement decreased from an average of more than 400 Birr a quintal to 160 at factories’ gate, the oversupply and saturation of the domestic market is pushing cement manufacturers to look for foreign markets. Since 60Pct of the cost of cement production goes to energy, which is largely generated from coal; it’s becoming evident that competing in the international market would only be feasible when energy-related constraints are resolved. EBR’s Samson Hailu explores the complex issue.

Monday, 16 June 2014 06:00
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With the introduction of the Growth and Transformation Plan (GTP) in 2010, special focus has been given to Ethiopia’s textile and garment industry. The country’s potential and distinct advantages in this field have made many excited about the prospects of growth. However, its performance in the past three-and-a-half years has been disappointing. The nation earned 244.2 million dollars from exports in three years while the target goal was 730 million dollars. As EBR staff writer Yoseph Mekonnen reports, lack of skill and work ethic, an absence of adequate infrastructure and raw materials,  and poor managerial know-how among industrialists are keeping the sector from reaching its full potential. 

Monday, 16 June 2014 03:00
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Over the last 20 years, China has grown at a rate of nearly 10Pct per year.  The growth was driven primarily by expansion of industrial and export-oriented sectors. This has opened the door for improved Ethio-China relations, which have witnessed unprecedented growth in the last decade. Whenever Ethiopia seek loan, technical assistance and investment, China responds positively by providing debt reduction and support with no political strings attached. 

The recent visit by Li Keqiang, Premier of the world’s second biggest economy, brought hopes of acquiring billions of dollars for cash-starved Ethiopian government. China’s promise to offer much-needed financing for several mega projects in Ethiopia comes at a crucial time. The old saying that ‘a friend in need is a friend indeed’ is perhaps a fitting one for relations between the two countries. Samson Hailu, EBR’s Research Editor ,explores the economic relations between the two countries and what China’s increasing presence and economic interest in Africa mean for Ethiopia and the continent at large.

Monday, 16 June 2014 03:00
Published in Economy & Finance
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Due to its ancient history, remnants of past civilizations, diverse cultures and natural beauty, Ethiopia has the potential to be a must-see destination for tourists. Yet, despite its abundance of historic and natural attractions, the country has not benefitted from a robust tourism industry. EBR Staff Writer Berihun Mekonnen explores that limitations on tourist site development and service deliveries, poor infrastructure, and weak promotion and marketing are hindering the prospects of making Ethiopia a world-renowned tourist destination.

Monday, 16 June 2014 03:00
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Government Officials and manufacturers have recently held discussions on the market challenges of metals and engineering companies particularly (car assemblies) in Ethiopia. The government blames the society for its impaired attitude about local products while the manufacturers accuse the government of taxing their products twice which contributes to their inability to compete. But the public says if people want to understand the culprit behind their rejection of new, locally assembled cars for much older, used imports one need look no further than the quality of the vehicles, access to maintenance and delivery of spare parts. In fact many people were at first proud of owning a locally made car, however they soon became jaded, writes Berihun Mekonnen, EBR’s editor-in-chief. 

Wednesday, 16 April 2014 06:00
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