Sewagegnehu DagneA strong export performance and stable balance of payment stance are the main sources of growth and prosperity. In the last decade, the government has been claiming Ethiopia achieved double-digit economic growth. Ironically however, the past ten years can be labeled as ‘the lost decade’ in relation to Ethiopia’s export performance.
A Sector misunderstood by Policy Makers
Ethiopia is the leading country in Africa in terms of livestock population with more than 60 million cattle, 30 million sheep, 30 million goats and over 1.5 million camels. Livestock contributes over 15Pct of Ethiopia’s GDP and 45Pct of the agricultural GDP. In Ethiopia, livestock is a tractor for crop farming, source of cash income for millions, insurance for uncertainties, fertilizer for crops, expression of status for families, store of asset, and source of foreign currency for the country.
In the past, technological progress in the banking industry was steady and slow. But beginning from the 21th century that trend has changed and we are looking at progress every now and then. Beginning from the core banking system which enables branches to be interconnected in their activity and exchange of information, to mobile and internet banking, technology is enabling clients to conduct financial transactions from anywhere. Technology also becomes the main means of gaining a comparative advantage and a source of efficiency for the banks. It also helped banks to increase the penetration of mobile and internet banking service, which is a plus for them to reach customer in a simplistic way.
