November 2012 – Ethiopian Business Review

OIC’s new Index Based Livestock Insurance for Borena pastoralists

Oromia Insurance Company (OIC) has recently launched a new product dubbed Index Based Livestock Insurance (IBLI) for pastoralists in Borena Zone, Oromia National Regional State. For farmers and pastoralists in Ethiopia’s drought vulnerable zone, the launching of IBLI is very good news.

Borena has been affected by drought recurrently over the past couple of years. According to the United Nations Office for the Coordination of Humanitarian Affairs, in 2010 and 11, drought in Borena caused serious damage to the rich livestock resources of the region. As a result 412,000 out of a total of 1.29 million people in the region were receiving food assistance including aid provided under the Productive Safety Net Programme.

Businesses are legally responsible for their actions as if they were individual. This concept, known as corporate criminal liability, looks at practically every commercial or industrial organization whose existence is to make profit. As to the concept, businesses are responsible as an entity separate from their shareholders or partners.

Nonprofit and public sector organizations like charities, schools, or religious institutions are treated differently.

Surpassed last year’s earning by 14 per cent
Earning shows 69.14 per cent of the plan
The gap between plan and accomplishment alarms realizing GTP

The direct relationship between export and country’s economic growth is apparent. Economists also insist that if export figures (quantity or earning) fluctuate year after year, uncertainties will emerge in the economy. In turn, these uncertainties build unfavourable pressure on investment. These might, in the end, have negative repercussions on overall growth. Balance of payment crisis also turns out to be the other effect.

Ethiopian Revenues and Custom Authority (ERCA) is planning training of more than 1200 logistic operators in November, 2012 Ethiopian Business Review learned. Applicants have paid 6528.84 birr each to receive training. Upon completion, the trainees will receive certificate of competence which will make them eligible to get license for transit and logistics services.

The authority set the new training after considering repeated request by importers and exporters.

Awash International Bank (AIB) has set a new organisational structure throughout its head and branch offices. The structure integrates job descriptions and specifications, job grades and titles, salary scale and benefits packages, Ethiopian Business Review learned. The bank has also started grading branches into four classes.

The salary structure has been put in place beginning the new fiscal year. Because of the new scale, which is based on restructured pay grades, pay has risen 20 to 140 per cent, according to Ethiopian Business Review’s source. Most workers rejoiced when they heard the news about the increase but some, after realizing how the adjustment was carried out, were not happy.

BGI-Ethiopia and Ambo Mineral Water have recently come up with a first of its kind cooperation in advertisement in Ethiopia. The companies started a new style to advertise their products side by side in one sign board. This unique style of advertisement has started its function last September 2012 in Butcher’s around Piassa. The companies have also started to use joint advertisement during concerts. One such occasion was a concert at the Lafto Mall recently where Nathnael Ayalew, a young pop star, performed to a large crowd of people.

The foreign direct investment (FDI) in Ethiopia, in 2011/12, was hugely dominated by two countries. Perhaps, contrary to what many people might think, Turkey and India took 58.75 per cent of the total FDI capital registered in the last fiscal year. If we see the data of only the top 10 total capital, the two countries’ contribution increases to more than 81 per cent. In terms of job opportunities, 62 Indian projects which created employment opportunities for 46,131 people (over 28 per cent of the total jobs FDI brought in the year) leads the group, while Turkish investors with 22 projects created 12,004 people is the second. Investment from neighbouring Sudan which created 11,645 jobs was the third.

The Ethiopian Federal Parliament, in late September, convened a rare emergency session. The agenda items were equally extraordinary because appointing a new Prime Minister was unthinkable as recently as a couple of months ago.

After missing from the public eye for weeks, the death of former Prime Minister Meles Zenawi, at a Belgian hospital, was announced on August 20. The illness has not been disclosed to date.

Last September showed the coming of series of business delegations to Addis Ababa from East. One of the delegates was from small but industrialized country, Singapore. The Singapore’s delegation, which consisted of 20 bossiness people, focused to get dealers from Ethiopia for construction machineries, caterpillars, and agro-processing materials. They also wanted to identify suppliers of spice products. The mission also planned to engage in shipping and logistic sectors to ease trade activities they want to undertake in Ethiopia.

Sivu Maqungo, Chief Director for East and the Horn of Africa at the Department of International Relations and Cooperation, Republic of South Africa said on September 19/2012. He was in Addis Ababa to address a business meeting the Addis Ababa Chamber of Commerce and Sectoral Association (AACCSA) organized for the Ethiopian Business Community to talk about business and investment with a delegation from South Africa. Maqungo, who was head of the Delegation, said to a group of Journalists that South African Business Community would like to know three things about Ethiopia. So, solemnly, he said, the first thing they would like to know is, Ethiopia’s location.

Insuring the Uninsured

Corporate Criminal Liability: An Emerging Concern For Businesses In Ethiopia

Ethiopia’s Export: Half Full or Half Empty?

ERCA Plans Training 1200 Transit Operators

Awash International Bank Launches New Salary Structure

Mutualism in Business

Top 10 FDI Sources in Ethiopia in 2011/12

Prime Minister Hailemariam Desalegn: Up Close & Personal

South-East Asia Eyes Ethiopia

“The first thing the South African Business Community wants to know is Ethiopia’s location …”

Arki Homes Expo being held at Millennium Hall

Tulu Kapi Signs Umbrella Agreement

Local company Wins Fintech Innovation Award