Misused Public Spaces

In cities like Addis Ababa where urban spaces are scares as hen’s teeth, roundabouts offer a great deal of public space to display monuments and other forms of public art to document history, culture and commemorate figurative personalities and occasions. Luckily the redevelopment and expansion of existing and new roads has created more roundabouts in the city reaching 83 as of recently.
However, little has been done by the city government to develop these public spaces so that they serve their rightful purposes. To the disappointment of many, private companies have been scrambling them to display their commercials in the name of development. This is amid the fact that the city has erected no single monument in 25 years in honour of a national hero in such public spaces. EBR’s Tamirat Astatkie spoke with city officials, architects and art historians and also consulted researches to offer this report.

How Do Nations Do so without Victimising Genuine Importers?

While tariffs on customs are a key income generator for developing countries, they also have the potential for misuse. Government agencies may inflate figures to increase tariffs. Importers, however, may under-invoice products to pay lower taxes or increase profit margins. This tension, experts argue, is best solved through a fair and consistent valuation system to help a country earn as much income as possible. EBR’s Ashenafi Endale spoke with key stakeholders and consulted researches to learn more about what’s being done to bring this type of system to Ethiopia.

What Are Its Benefits, Drawbacks?

As competition in Ethiopia’s financial sector increases, banks are looking for ways to maintain a competitive advantage. As a result, some have introduced segmented banking for high-end customers – a form of customer service that revolves around targeting clients with lucrative portfolios. Research suggests that this method helps banks increase their profit, but that it isn’t entirely foolproof. EBR’s Ashenafi Endale spoke with banking insiders to learn more about this form of specialised banking and how it’s being implemented locally.

Government officials have made no secret of their desire to have the manufacturing sector be a strong component of Ethiopia’s quest towards economic development. This goal, however, comes with environmental concerns, as factories tend to produce waste that gets dumped into nearby waterways. As a result, a number of adverse, long-term health and environmental effects are likely to arise. So what’s being done to tackle this reality? EBR’s Ashenafi Endale spoke with key insiders to learn more about environmental considerations in an era of rapid industrialisation.

The construction sector is a crucial driver of economic activity – and has been the key to Ethiopia’s double-digit economic growth for the last decade. Despite its promise, the sector is plagued by inefficiency, with projects sometimes generating cost overruns of 60Pct or more, according to the World Bank. This trend, however, may change soon, as many private real estate management companies have proven that local, large-scale construction projects can be completed in a time- and cost-efficient manner. But what, if anything, will other public and private companies learn from this? EBR’s Ashenafi Endale spoke with industry insiders to learn more about what’s being done to make the country’s construction sector more efficient.

How Beneficial Will They Be?

Hotel management contracts are arrangements in which an international hotel company (the owner) agrees to give a company operational control over a hotel (the operator) in exchange for a fee. These contracts are often beneficial for developing countries, as the owner often assists in the development of the hotel. Some, however, say they may hamper the work of small, local hotels. EBR’s Tamirat Astatkie spoke with a number of stakeholders to explore the potential promise and pitfalls of these agreements.

At the sixth Tokyo International Conference on African Development (TICAD), which took place in Nairobi, Kenya in late August, Japanese Prime Minister Shinzo Abe pledged USD30 billion in investments throughout Africa. This will help the East Asian nation increase economic ties with the continent, which lags far behind its regional neighbours. For example, China and India, two of Ethiopia’s biggest investment partners, have operational investments worth ETB15.9 billion and ETB5.8 billion, respectively, while Japan had ETB50.2 million. Now that Japan has expressed interest to invest in Africa, how much could Ethiopia benefit? EBR’s Samson Hailu delved into the matter and offers this report.

Investors from Ethiopia’s far-flung Diaspora are helping shape the country’s economy. This is especially true of the service sector. According to the Ethiopian Investment Commission, Diaspora investors have implemented 421 businesses in the hotel and restaurant sub-sector since 1999. Studies suggest that a friendly business environment is likely to expand the influence of these investors, especially in the fields of healthcare and financial services. To that end, the government is pursuing policies to make investing easier for this community. But has enough been done? EBR’s Tamirat Astatkie spoke with business owners and government representatives to learn about the realities on the ground and what’s being done to make investing easier for the Diaspora.

Local manufacturers face a cavalcade of challenges – foreign currency shortages, import logistics, and frequent power outages, among other things. However, a number of benefits are afforded to those who focus on exporting their goods. The underlying logic is to promote manufacturing and increase export earnings. But is this the best way forward? Some economists and local manufacturers say that a policy that focuses on the local market would benefit Ethiopia’s economy in the long run. EBR’s Ashenafi Endale spoke with industry insiders to learn more about the details of this debate and offers this report.

The introduction of integrated automated teller machines (ATMs) means the banking sector is aligning itself with the technological practices of more developed nations. It also represents a logistical quagmire for banks that have established vast ATM networks and now have to share them with newer ones. EBR’s Ashenafi Endale spoke with banking sector insiders to learn more about the nuances of this issue.