Ethiopian Business Review

Employees in Ethiopian financial institutions switch working places primarily in search of better pays and benefit packages. This was aggravated as banks, particularly public-owned ones, didn’t put in place effective staff retention strategies. However, several of these banks have recently started to offer attractive salary and benefit packages. The move is helping the banks to stay competitive. 

The high increase of salaries and benefit packages is, however, becoming a critical challenge for new entrants. These banks have two options: offering higher, often exaggerated, salaries and benefits to the few skilled professionals in the industry or devote resources to train fresh graduates. 

Although both options have merits and demerits, human resource experts advice a right mix of strategies. 

Wednesday, 16 July 2014 00:00
Published in Focus
Read more... 0

In a warm Saturday late morning last month, Fikru Legesse, 36, general manager and share holder of FM Medical PLC, sat down depressed and disappointed in his tiny office located on General Wingate Street known popularly ‘Eri Bekentu’ in Addis Ababa. His company retails and distributes medical supplies to clinics that provide general diagnosis services for low level workers, who travel to the Middle East. 

Wednesday, 16 July 2014 00:00
Published in Focus
Read more... 0

Businesses and individuals obtain guarantees by purchasing insurance policies from insurance companies in case unexpected accident happens. This helps them to mitigate risks and lessen damages. Insurance companies also get insured by reinsurers to mitigate unexpected risk portfolios. Ethiopian insurance companies have been purchasing reinsurance from cross-border reinsurance providers, which has been costly and potentially fraught with illegal practices. Recently however, the National Bank of Ethiopia (NBE) has issued a new directive which enables the establishment of reinsurance companies locally. The new directive will have implications for the economy in general and the insurance industry in particular. As EBR Staff Writer Yoseph Mekonnen writes, the possibility of heavy-handed government regulation and potential pitfalls in establishing it won’t make implementing the directive an easy task.

Monday, 16 June 2014 06:00
Published in Focus
Read more... 0