Blog – Page 107 – Ethiopian Business Review

One of the young leaders that bolted to the front after PM Abiy’s reformist administration took power in 2018, is Fitsum Assefa (PhD), Minister in Charge of the National Planning and Development Commission (NPDC). She successfully maneuvered in the struggling economy to replace the previous GTP II with the Homegrown Economic Reform program. For the last two years, she led 12 studies preparing the Ten-Year Perspective Plan (TYPP), involving domestic and foreign institutions like the Korea Development Institute. The overambitious TYPP document is almost ready for implementation now.
Prior to her current appointment, she occupied different administrative positions at Hawassa University including Dean of the College of Business and Economics and also chaired the committee charting the university’s five-year strategic plan.

Ethiopia is endowed with abundant renewable energy resources and has the potential to generate over 60,000 MW of electric power from hydroelectric, wind, solar, and geothermal sources. However, the country only generates 4,500MW, not sufficient to satisfy more than 100 million people. To address the current and future demand forecasted to grow 14Pct annually till 2037, the government recently announced a new plan for the next ten years. The plan envisions increasing the electric generation capacity from renewable sources from the current 4,500MW to 19,000MW by 2030, of which the private sector is expected to generate 9,000MW. However, investors engaged in the energy sector inform that many hinderances limit the involvement of the private sector, and thus meeting the target will be very difficult. EBR’s Ashenafi Endale investigates the issue further.

Access to clean energy is key to the advancement of Ethiopia. As such, pursuing renewable energy development is essential to attain energy security and economic sustainability, while helping to mitigate climate change and its devastating impacts. Ethiopia is among few countries in the world with great potential for renewable energy generation. Aware of the country’s potential, the government launched a plan to speed up the development of different renewable energy sources, a decade ago.

Tulu Moye Geothermal Operations (TMGO) project is one of the initiatives launched to develop an optimum level of renewable energy mix in Ethiopia. The project, expected to generate 150MW at a cost of USD800 million, is situated in the main Ethiopian Rift Valley close to the eastern margins of the rift and northwest of Assela town. Established in December 2017, TMGO, was formed by a consortium of western investors—French firm Meridiam and the Icelandic Geothermal company Reykjavik Geothermal. TMGO signed a power purchase agreement and an implementation agreement with the government on December 19, 2017 and restated documentation in March 2020. This makes the company the first private-sector-led power project in Ethiopia.

After a year-long Struggle, Manufacturers, Exporters see a Glimpse of Hope

In 2020, the spread of COVID-19 affected the global economy in large magnitude by reducing economic growth and slowing down business activities. Manufacturers and exporters operating in Ethiopia is also hit by the pandemic in a massive scale because of the cancelation of orders by international retailers and apparel. But after a yearlong setback, industry players say that foreign buyers are starting to place orders as the world’s economy is now under recovery. However, they argue to capture the opportunity, difficulties that hinders the performance of export-oriented manufacturers in Ethiopia should be solved quickly. EBR’s Ashenafi Endale explores.

Liyu Dender, is a Logistics and Supply Chain Manager at Nazret Garment, now owned by Bagir Group, an Israeli company specialized in developing, manufacturing, and marketing tailored garments. The company has the capacity to produce 4,000 trouser suits daily. In 2019, Nazret Garment shipped products worth USD5.4 million. However, branded international retailers have canceled their orders after the breakout of the coronavirus pandemic last year. EBR sat down with Liyu to learn how Nazret Garment is coping with this situation and its future prospects.

Reduced physical engagement with cash due to COVID-19 triggered an increased demand for digital transactions and was coupled with the central bank’s measurements towards limiting cash withdrawals. The number of digital payment and online delivery companies has boomed to 35. Although the time is ripe for fintech companies and software developers, newly placed regulatory frameworks by the central bank are stunting the sector along with banks’ stubbornness in sticking with bricks and mortar. Ashenafi Endale, explores how de facto payment and delivery companies are struggling to transform into independent operators under the new directives of the central bank.

Sport managers of high-end teams usually uncover every stone to find outstanding performers from small fields around the global village. But now, private sport investors who cultivate and market talent are emerging. Private sport academies nurture budding talent and train them with qualities that grow their visibility in the eyes of elite teams. In Ethiopia, sport investment has been a state initiative for long and most football clubs have been dependent upon government funds until recently. The trend is shifting especially after DStv started airing Ethiopian football games, thus opening more opportunities for sport investors working on the grassroot level. Abiy Wendifraw, witnessed the commercialization taking shape in football.

Urban thinking is often shaped by artistic touches. A simple painting can change minds, more than lectures or politicians’ speeches. A city with more artistic room can transform residents into civilized minds rather than modernization enthusiasts. For street artists thriving to bring such taste, Addis Ababa is rather a construction site than an inspirational neighborhood. Street art, an under formation concept in the capital, has to compete for space, amidst growing use for walls, buildings, structures, and outdoor spaces by commercial ads. Samuel Habtab, traveled around with groups of street artists rebranding the capital.

Foreigners residing in Addis Ababa usually have no choice but to fit into the status quo. Irrespective of their social makeup and which continent they are from, they blend fast and move on with the existing spectra. This is mainly due to an absence of room to socialize. Especially Africans have less options since more venues emulate western cities than African values. Finding their original staple food and drink, authentic gestures, art, and language in Addis means ending homesickness. House of Fulani, is the pan-African make-believe unveiled in the heart of Addis Ababa, to serve the growing African community in the capital. Kiya Ali, paid a visit.

Over the past decade-and-half, the drive for industrialization through infrastructural expansion and mega industrial projects called for significant resource requirements. Ethiopia has little mineral exports to take advantage of a commodity price boom, so it must mobilize resources from local and foreign sources.

Non-dogmatic, Pro-private Sector

Disempowered Energy Investors

“Ethiopia needs to invest in the right mix of renewable energy sources.”

Bouncing Back from Corona Slump

After a year-long Struggle, Manufacturers, Exporters see a Glimpse of Hope

“It is Better to Hire Many People and Pay Less”

Digital Transaction Prospects and Vacuums

Private Football, Academies

City as a Canvas

The Rising of The Fulani Empire In Addis

Financing Long-term Development Plans