Fikru Tsegaye WordofaJust like any other aspects of the economy, the insurance industry had been significantly affected by the overall economic and other policies existed in Ethiopia. Though the potential for growth is strong, the insurance industry is not delivering as expected due to structural bottlenecks and challenges at macro as well as micro levels.
Hence, to develop the industry, and achieve the growth envisioned, deeper understanding of the realities on the ground and enabling legal and regulatory framework is needed. On top of these, broader understanding of the industry perspective through the value chain, establishing industry conduct that will enhance consumer trust, identifying growth avenues and by crafting right strategies is also required. Above all liberalizing the sector in every aspect is needed to emancipate the industry.
In Ethiopia, the hospitality industry, which includes the hotel and tourism sub-sectors, has been registering progress. Official reports from the Ministry of Culture and Tourism show that the sector has never been better in terms of tourist flow and revenue. The sector is expected to record growth in the volume of inbound and outbound tourists in the years to come.
Succession planning isn’t as straightforward as just christening one or more workers as surrogates, or enumerating a list of would-be substitutes. Rather, it is a strategic, planned and cognizant effort to cultivate future leaders who can ensure a business’s sustainability. Arguably the most critical decision a given board makes for a company’s future is electing a CEO. It must also be a standing board agenda item and the board should be kept appraised of development plans so that it assures that the organization’s future leadership needs are met. To everyone’s wonder, in Ethiopia’s financial sector most boards know least, or bother less as to how to choose their next CEOs.
Opportunity, Threat for Insurance?
No country in the world, however well protected, can consider itself immune from political violence. Terrorism is evolving fast as networks and cells continue to look at new methods to inflict damage and cause panic. Under the current circumstances, politically motivated attacks and civil unrest in Ethiopia keep threatening business organizations. As a result, companies look to insurance protection—primarily political risk and terrorism coverage—to manage the exposure. The current eruption of political violence in parts of Ethiopia and the adverse human and financial cost, coupled with the swelling tendency of threats, is pushing the risk into uncharted territory.
Businesses are legally responsible for their criminal 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.
Facts and figures show that the insurance density-cum-penetration level in Ethiopia is at the lowest point. While there are scores of factors, both from the supply and demand sides, one possible reason is dearth of research based insurance products and solutions that could meet the needs and socio cultural make up and religious standards of the society. The industry is highly dependent on conventional insurance products such as “motor” which constitutes the largest portfolio.
The financial sector in Ethiopia has been undergoing considerable changes in recent years. The dramatic rise in the number of new market players in the sector has vividly altered the competitive environment and increased the demand for skilled labour.
The concept of ‘micromanagement’ might not be new to you. Still, it’s a buzzy term in the business world and often it means different things to different people; therefore, it is important to define the term from the outset. Its actual meaning, as defined by academicians, is supervision with too much control on trifling details. In most cases, no matter how minute the project or decision, micromanagers sense it compulsory to be in command of it.
Business organisations and individuals in Ethiopia vary in terms of their stance on the subject of electing insurance as a risk management tool. Practice and figures show that although insurance policies are availed to guard businesses from apparent life, property and liability risks, most prefer self-insurance or other risk management tools instead of traditional insurance.
as a Strategy of Reducing Drought-Related Vulnerability
Ideally, the rainy season in Ethiopia begins in June and lingers through August or mid-September. Known locally as keremt, it is during these three months that Ethiopia obtains the chief portion of its total annual rainfall – and serves as a key determinant in the country’s ability to feed its populace and prepare certain items for export.
