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Lately, Addis Ababa has witnessed a boom in high-end men’s barbershops, which have distinct features such as neat rooms, wider spaces and attractive interior designs. With a unique marketing strategy, this new kind of barber, which usually charges between ETB70 and ETB150, is seemingly popping up in every new building. As it becomes one of the quickest-growing professions in the capital, the new trend is now starting to appeal to more and more of the city’s residents, as Ashenafi Endale reports.


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What is the way Out?

In recent years, Addis Ababa has been increasingly affected by flooding due to its vulnerability to rainfall and flash floods. The vulnerability to flooding has been further aggravated due to a poor drainage system, rapid urbanization and climate change, which have lead low-income communities to settle in flood-prone areas. EBR’s Ashenafi Endale explores the extent of the damage as well as what the government is doing about it.


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Is it the Magic Bullet for Africa’s Industrialization?

The African Continental Free Trade Area (ACFTA) was signed by 44 African countries, including Ethiopia, in May 2018, and will cover a market of 1.2 billion people and a gross domestic product of USD2.5 trillion once it is implemented. In terms of numbers of participating countries, ACFTA will be the world’s largest free trade area since the formation of the World Trade Organization. The creation of a free trade area is expected to boost the current intra-Africa trade, which stood at 13Pct. Although officials stress that it will be a beneficial for Ethiopian goods to penetrate other African markets, many are concerned over the competitiveness of the private sector in the local market, let alone outside the country. EBR’s Ashenafi Endale reports.


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Why Converting Great Idea into Reality is Difficult 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.


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Biogas is a multipurpose technology, which assists in addressing economic, health, social and environmental problems. Developing and spreading this technology would certainly minimize dependency on charcoal and firewood, as well as improve peoples’ lifestyles, especially in developing countries like Ethiopia. In line with this, Ethiopia has finished implementing the first and second phases of its National Biogas Programme, from 2009-2013 and 2013-2017, respectively. During that period, the country was able to disseminate 18,000 biogas digesters. However, the supply is still far from satisfying the demand. According to estimates, the number of potential beneficiaries of biogas technology is as high as four million households. EBR’s Ashenafi Endale investigates the major factors that have held back the spread of biogas.


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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. The country aspires to increase earnings from the sector which currently stand at close to three billion dollars annually, according to the Ministry of Culture and Tourism. Tour operators have a massive impact on the industry. In Ethiopia there are close to 500 individual tour and travel companies that are actively engaged in providing tours and tour operation related services. This is a massive increase compared to ten years ago. However, tour operators are facing new challenges from foreign and illegal tour operators that are snatching customers from them. EBR Ashenafi Endale explores the issue.


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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.


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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


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The Rise of A Megacity

Lagos, the financial and commercial capital of Nigeria is a city in the middle of great changes. Although it covers less than one percent of Nigeria’s territorial land mass, it accounts for over 60Pct of industrial and commercial activities in the nation. Even based on the city’s 2015 gross domestic product of USD136 billion taken, it has become the 5th largest economy in Africa. While visiting Lagos, EBR’s Ashenafi Endale explores the city’s prospects for further economic growth.


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Mulugeta Beyene
Director, Manufacturers & Duty Free Support, ERCA

Ethiopia offers financial incentives such as tax reductions and holidays, as well as custom duty exemptions to companies engaged especially in manufacturing activities. But incentives are given and monitored in a scattered and uncoordinated manner. To address the issue, the Ethiopian Revenues and Customs Authority (ERCA) is currently establishing a directorate that will follow up and monitor the proper use of incentives, which have been exposed to abuse. EBR’s Ashenafi Endale sat down with Mulugeta Beyene, director of the newly established Manufacturers and Duty Free Support Directorate at ERCA to learn more about the government’s plans to enforce proper usage of incentives.




Ethiopian Business Review | EBR is a first-class and high-quality monthly business magazine offering enlightenment to readers and a platform for partners.



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