Abyssinia Business Network / ABN / August 2019

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‘WALL STREET’ Abyssinia Business Nework ነሃሴ 2011 / August 2019

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Abyssinia Business Nework ነሃሴ 2011 / August 2019

Abyssinia Business Nework ነሃሴ 2011 / August 2019

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Editorial Team MANAGING DIRECTOR Daniel Tiruneh

MANAGING EDITOR Getachew Alemu

EDITOR IN CHIEF Aklile Tsige

CONSULTANCY Zeima Ahmed

STAFF WRITERS Mekonnen Hailu Ketema Kebede Chacha Hiwot Salelew

Teshome Fantahun

REPORTER

Josephine Wawira Kamba Anthony Joseph Oduha

Designer Daniel Tiruheh Photo Sol Image

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Rahel Tesfaye

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Abyssinia Business Nework ነሃሴ 2011 / August 2019

ABN : The Unfaithful ATM It has been a few years since banks in Ethiopia started using automated teller machine (ATM), which is an electronic telecommunications device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, transfer funds, or obtaining account information, at any time and without the need for direct interaction with bank staff.

In the late July and early August 2019 customers of the Commercial Bank of Ethiopia got upset and confusedas its ATMs failed to show balances and transactions, web log-ons were rejected, and smartphone apps displayed errors.

The problem which the Bank’s official and staff said is caused due to “system failure” was likely to cause hindrances in the financial transactions and market exchange across the country; people were stranded to perform financial activities as they were denied access to get back their own money.

This recent technology is, indeed of great importance in terms of its time-saving and efficient service delivery features; however, if it denies customers’ money whenever they are badly in need of it, it’s totally an institution failure instead of system failure.

The bank’s system failure during this specified time was so serious since it was almost pay day’s moment, and caused some to ask whether the banking systems they depend on are too fragile.Customersare usually told that the Bank continually reviews and updates its systems as necessary and make significant investment to do this.

In deed several banks in US, UK and other European countries have suffered a series of IT problems over the past few years. In December 2018, an estimated 750,000 customers at the Royal Bank of Scotland group were unable to use their credit and debit cards for several hours but the case in our CBE service takes days if not weeks, to bring the system back soon.

The irony is that here in Ethiopia the more we embrace the digital wallet, the more emergency cash we may need to carry for when these systems crash.

The technical fault has now been fixed, and the banking group has apologized to those affected.

May the Almighty God be with them to restructure their IT systems so that CBE customers wouldn’t get exasperated and confused.

Abyssinia Business Nework ነሃሴ 2011 / August 2019

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Abyssinia Business Nework ነሃሴ 2011 / August 2019

CONTENTS

34

Ethiopian Stock Exchange Market:

Logistics challenges facing

in Ethiopia

42 28 10 Questions ?

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Unique Trend

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Abyssinia Business Nework ነሃሴ 2011 / August 2019

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SHEGER

‘Wall Street’

By Aklile Tsige

getting image

N

early a decade has gone since Ethiopia entered construction revolution; the capital Addis Ababahas especially been showing a remarkable facelift through various construction schemes like housing and real estatedevelopment projects, as well as greening and beautification endeavors.

A city with a distinct architectural style has a certain draw to travelers.

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Great architecture is both artistic and scientific, both beautiful and practical. Even more, architecture gives us cultural clues about a city’s past, present and future.

Important architectural advancements such as the invention of the dome, of concrete, and of the skyscraper itself not only advanced the technology of construction, but

Abyssinia Business Nework ነሃሴ 2011 / August 2019

also challenged architects to compete amongst themselves to produce more efficient and creative structures.

We in Ethiopia have been witnessing only few amazing and unique buildings being constructed in various cities of the country that have developed a reputation for notable architecture styles and histories, it’s also impossible to give enough attention to all architectural masterpieces.

But in Ethiopia especially at the capital, Addis Ababa a new architectural beauty is emerging with an ever-increasing building construction. At the heart of the metropolis locally known as “senga tera” mainly private banks are taking shapes and lines, creating a financial hub like that of Wall Street in the US. Wall Street is the home of several market exchanges and is also the catch-all phrase referring to America’s financial industry.

Less than a mile in length, Wall Street is located in New York City’s Lower Manhattan area and gets its name either from barriers erected for security in the 1600s or from the name of Dutch settlers who lived there.

A marketplace developed near the barriers and grew to include people who auctioned or traded bonds. Today, Wall Street is home of the New York Stock Exchange and the NASDAQ, which are the world’s largest exchanges. The Wall Street area also hosts the New York Board of Trade and the New York Mercantile Exchange. Large financial firms have offices in the area; further enhancing Wall Street’s standing as the center of the financial world.

Ethiopia’s or our “Wall Street” could be located at an approximately circular spot that stretches nearly from Meskel Square, or opposite to the old National Stadium where the magnificent Wegagen Bank headquarters is erected, to the place called ‘Mexico Square’, or ‘Senga Tera’and through the

United Bank HQs under construction Ethiopian National Bank HQs to the ongoing construction of Commercial Bank of Ethiopia.

In this vast site several private banks like Awash, Dashen,

Abyssinia, Nib, United and Zemen as well as other financial institutions have been erecting their unusual, fabulous and splendid Headquarters.

Abyssinia Business Nework ነሃሴ 2011 / August 2019

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Most importantly, the ongoing construction of Zemen, Nib, United and Nib banks HQs is creating an exquisite face to that particular area and the city in general. These buildings’ architectural beauty added with their tallness, in no doubt, makes the place a very attractive business center where the majority of the nation’s financial transactions are taking place.

Nib International Bank S.C is currently finalizing its headquarters in the heart of Addis Ababa, close to the National Bank of Ethiopia (NBE). It thereby joins other financial institutions in what seems to become Ethiopia’s financial center, or our Wall Street.

What’s so amazing about this building is that its design incorporates and symbolizes the very nature of the bank’s name-NIB which literally means honeybee.

This building takes the shape of a beehive with honeycomb curtaining in dark amber color.

NIB, one of the oldest private banks after the country embarked free market for the last 19 years, has been constructing this HQs on 2,800 square meter of land just behind the National Theater, in front of the new headquarters of Awash International Bank and Awash Insurance Company. The twin towers that were constructed by the two financial sister 08

Nib International Bank HQs under construction

Abyssinia Business Nework ነሃሴ 2011 / August 2019

firms, Awash Bank and Insurance, remains one of the largest buildings of the capital.

Ethiopia’s largest bank, Commercial Bank of Ethiopia is also taking the leading in building the 53story new headquarters around Gandhi Memorial Hospital and the structure is expected to become East Africa’s tallest building upon completion. The 23 story- Wegagan Bank’s headquarter is also available nearby the Addis Ababa Stadium and the HQs of Abyssinia and Oromia Cooperative Banks are in various levels of construction in the financial district.

Zemen Bank, which follows a single branch model, is also one of the banks taking queue in this financial site-our “Wall Street”.

Uniquely designed and located, Zemen Bank HQs appears with a magnificent and an elegant look, incorporating modern architectural beauty, both in its interior and exterior designs.

This site also embraces Ethiopian and Addis Ababa Chambers of Commerce, Ethiopian Commodity Exchange (ECX), School of Commerce Addis Ababa University, Government and private insurance companies as well as other financerelated institutions.

People by passing these lined up buildings under construction often express their joy and admiration to the architectural designs and beauty of the buildings prior to completion. This might be due to their height, unique structure and location as well as harmony with other buildings around.

Zemen Bank HQs under construction Abyssinia Business Nework ነሃሴ 2011 / August 2019

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Rising Building Adding Color to

Addis Skyline By staff writer

O

ne bright afternoon I had a friendly chat with my friend who is a Branch Manager in one of the private banks here in the capital, Addis Ababa.He told me that these days his branch is incurringunjustifiable rental cost which isin turn affecting its profit as compared to other branches due to its location.

Of course in the case of branch network expansion, renting an office is inevitable. But placing different organs of a head office in various locations has several disadvantages as it is costly, impedes speedy delivery of service, andbeing unmanageable, among others.

Hence, the writer of this piece feels that this trouble has necessitated for the coming into being of high-rising headquarter buildings of financial institutions.These buildings are believed to bring all the dispersed 10

Abyssinia Business Nework �ሃሴ 2011 / August 2019

organs of the bank into a single location.Besides, centralizing the head office operations in one building is an important aspect of achieving efficiency in the banking industry.

One of these eye-catching andthe most distinct landmarks in Addis skyline andbecoming the grace of the city is the skyscraper which is being erected by Commercial Bank of Ethiopia (CBE). The glamorous edifice is visible from distant locations towering all the medium ones surrounding it.

This 198 meterstall and 52-storey world-class HQswhich rests on a total floor area of around 147,692m2 is expected to be the tallest structure in Sub-Saharan Africa. The construction work of the buildingwhich is under execution with an outlay of 5.3 billion Birr on RasDestaDamtew Road, behind Ethiopia Hotel began in April 2015 and scheduled to be finalized in July 2019.

However, due to various reasons the construction is still going on, undertaking curtaining and other installation works.

The building designed in diamond shape consists of a high-rise office tower and two low-rise building volumes. The office tower of over48 floors (4B+G+48)comprises the major departments of the Bank. The two low-rise buildings (4B+G+6 and 4B+G+8) are mainly conference centers, shopping center and parking garage.

Besides, the edificewill also have four parking lots with a capacity

to hold 6,000 vehicles at a time.

One of these parking lots will be outfitted with a mechanical parking system which makes use of magnetic cards and can hold 1,500 vehicles at one time. In order to transport their vehicles automatically inside the parking lot, drivers are required to insert the coded cards into the system.

Moreover, the building will consists of eight conference halls, out of which one will have the capacity to hold 2,000participants. Inside the structure, there will alsobe an emergency waiting area where individuals can seek refuge at times of disaster. The top two floors will house two restaurants and a sightseeing tower.

Apart from this, this state-ofthe-art headquarters will also have many unique structures such as Heat Ventilation and Air conditioner (HVAC), pressurized firefighting, Security Camera Television (CCTV), etc. whichmake the construction process quite complex.

The contractor selected by the bank to undertake the design and construction work is the renowned China State Construction Engineering Corporation Ltd. (CSCEC).

Besides, the design review, supervision and contract administration task is offered to Addis Ababa University-Addis Ababa Institute of Technology (AAU-AAIT).

When we see the track records of CSCEC, it has undertaken the construction offamous high-rise buildings across the globelike Marriott Hotel in New York and

the architectural wonder in Dubai, Palm Jumeirah Island. Besides,it has built its reputation after executing the AU Headquarters here in the capitalas per its two years deadline.

The Bank has now its Head Office function which is spread out in several other buildings it owns and rented in Addis Ababa. So the objective of the construction of this new head office building is to house all head office functions under one roof.

Apart from the aforementioned purposes, the giant complex would serve to further enhance the profitability and fortify the asset base of the bank; add beauty to the metropolis; enhance public trust and confidence as well as technology transfer and job creation, among others.

Similarly, other private commercial banks havealso made attempts to erect their headquarters in this area which is growing as Wall Street of Addis as well as in its surrounding.

For instance, we will find the G+18 twin towers of the pioneer AwashBank in which one wing houses departments underthe bank; while the other one comprises departments under the insurance wing.

Dashenand Wegagen Bankalso followed suit to erect and finalizetheir own headquarters in this area.

Accordingly, Dashen Bank erected a 21-storeyheadquarters with an outlay of one billion Birr.

Similarly, Wegagen Bankfinalized the execution of its 107 meters edifice which

consists of 23 floorssituated around Addis Ababa Stadium.

United Bank Share Companyon its part signed a headquarters construction agreement with China Jiangsu International Economic-Technical Cooperation Corp (CJIETCC) on May 2015 to erect a 119m high 30-storey headquarters having four basements. Currently, the Bank has fully completed the skeleton frame of its Headquarters and it is also becoming one of the eye-catching buildings of the metropolis.

Zemen Bank, on the other hand, is undertaking the construction of headquarters building (3B+G+32) on the same street and it is expected to be completed as early as 2020 (Annual Report, 2018).

The other private bank, Nib International Bank S.C also hired the China Railway No. 3 Engineering Group Co. Ltd for the construction of its 35-storey headquarters. Currently, the finishing work of the edifice is being speeded up.

On the other hand, some private commercial banks like Bank of Abyssinia and OromiaInternational Bankpurchased their own headquarters building.

However, the cost of finishing work or reshaping a building as per ones taste could also be equated with constructing a new building.

All in all, days won’t be long that we witness our own Wall Street likethe one in the New York City which is an eight-block-long street, and that plays pivotal role inthe financial market of the U.S.

Source: www.china.org.cn Abyssinia Business Nework ነሃሴ 2011 / August 2019

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Investing in Ethiopia, Big and Small, Made Easy!

By Dagmawit Atnafu A Bimonthly investment exhibition and forum launches this August.

August 3rd 2019 saw the launch of a daylong ambitious event and expo all about

investment. Hosted in Sapphire Addis Hotel, the exhibition and forum featured more than 20 companies offering different investment opportunities, along with panel discussions, research review and capital market talks all from important actors in the Ethiopian investment arena.

The event was organised by Golden Media and Events, an event organizing and media company, in association with the Ethiopian Investment Commission, as part of the commission’s effort to attract the private sector- local, diaspora and foreign- to invest in Ethiopia.

Ethiopian Investment Commission Deputy Commissioner Temesgen Tilahun, in his opening remarks, noted, “We are shifting from government led business and investment to a private led one”, adding that the commission is great progress in loosening restrictions and road blocks that were previously a hindrance to private investors looking to invest.

The efforts of the government making strides in making the investment process inclusive didn’t go unnoticed by the public, and the private sector is hugely taking advantage. The founder and CEO of Golden Media and Events Biniam Atakilt is taking the initiative to promote the accessibility of this opportunity.

CEO of Golden Media and Events Biniam Atakilt 12

Abyssinia Business Nework ነሃሴ 2011 / August 2019

Mr. Biniam and the Golden Media and events team set out to create a platform in which people would find a reliable and profitable investment, and investment opportunity providers would find enthused partners in business. “The only way to guarantee your money,

Photo Golden Media at the very least, retains its value in this inflationary economy is to put it towards an asset that grows in value,” said Biniam, stating that investment of any scale is the only way to protect your money against inflation and it is now easier than ever!

The exhibition, first of its kind, aims to take place every two months with different categories of investments.

It is a place to find several companies in one-stop, all offering enticing investment schemes, as well as a place to get and discuss the latest happenings in business and investment in the country.

The exhibitors involved were most notably real estate companies, share companies with available stock, construction and machinery import companies and banks. Ethiopian Investment Commission and the Ethiopian Tourism Agency both occupied booths of their own to promote the country’s propitiousness.

Also on the occasion, panel discussion was made between three major stakeholders in the investment promotion target of the country: Ethiopian Investment Commission Represented by Aschalew, Investment Promotion Director, Ethiopian Chamber of commerce represented

by Binyam Misgina, Investment Promotion Directorate Director and a representative from Ethiopian Diaspora Association.

The theme of the discussion was ‘Investment in Ethiopia.’ while EIC Panellist explained the Investment

opportunity Ethiopia has to offer to the world and the incentives provided by the government.

The Diaspora Association and Ethiopian Chamber panellists explained how they are promoting and facilitating investment to their member.

The panel discussion was concluded to create strong collaboration better the three stakeholders to promote investment and to support investors by increasing their service quality.

What is next, in Biniam’s words, is to go bigger on each round of events until it has an international reach. With the next round of the event scheduled tentatively for October 5th, it would mainly feature the manufacturing sector.

Biniam promised to consistently bring reliable medium with each

round, noting “The feedback from the launch is very encouraging, and has given my team and myself the momentum to forge ahead.”

As Golden Media and Events echoes Ethiopia’s call for the participation of those three major players in its economic advancement, underscoring that it is undoubtedly on its way to becoming a staple in the Ethiopian investment scene.

[Golden Media and Events can be contacted via w w w. e t h i o - i n v e s t m e n t . c o m goldenmediaandevents1st@gmail. com or @goldenmediaandevents

on all social media platforms.]

Abyssinia Business Nework ነሃሴ 2011 / August 2019

13

Ethiopian Stock Exchange Market:

Challenges and

Prospects

By Samuel Tekleyesus ( The writer earns MBA in Finance, is a Lecturer, Researcher and Business Consultant )

E

thiopia is the only country of the world’s 15 most populous countries which does not have a stock exchange. As different Scholars agreed, stock can benefit the economy of a developing nation in a number of ways, particularly when prices fairly and accurately reflect supply and demand.

According to investopedia, stock market refers to the collection of markets and exchanges where regular activities of buying, selling, and issuance of shares of publicly-held companies take place. Such financial activities are conducted through institutionalized formal exchanges or over-the-counter (OTC) marketplaces which operate under a defined set of regulations.

The concept behind how the stock market works is pretty simple.

Operating much like an auction house, the stock market enables buyers and sellers to negotiate prices and make trades.

14

Introducing stock market, among other things, allows the “deconcentration of ownership, improve accounting and auditing standards, provide effective tools for monetary and fiscal policy and help privatization efforts” and also contributes to economic growth, since it encourages investment by helping traders buy and sell stocks quickly and efficiently.

In recent times, Ethiopia has seen growth in the number of share companies under formation through initial public offerings.

Although some share companies have managed to mobilize huge amounts of capital from the public, there were disappointments as some of the promoters have failed to meet their promises.

There were also cases where some companies have failed to be

Abyssinia Business Nework ነሃሴ 2011 / August 2019

formed in addition to inappropriate actions of company organizers.

Facilitation of the trade and the positive impact of stock exchange markets, a question could be raised whether or not establishing a stock exchange market could do away with the problems that have occurred and likely to occur in the future.

While this is the truth, establishment of stock exchange and its related issues are seems to be undermined by the government and stakeholders in our country. Therefore this article focus particularly on challenges and prospects of establishing stock exchange in Ethiopia and it tried to see the role of stock exchange in the long run economic growth, its role as an alternate source of finance and the current challenges and prospects for establishment of stock exchange.

It is important as it could provide us with a better understanding of the Stock exchange markets in providing alternative financial source, particularly for the Ethiopian context, as the dynamics of the business environment is changing rapidly.

Financial market provides the public with investment opportunities and mobilizes savings, as well as international capital, for productive corporate financing. It is also argued that market forces serve to discipline management and public ownership thereby improving the accountability of the business sector.

History tells that share market has existed in Ethiopia during the Imperial regime. During this time, share dealing was handled by the National Bank of Ethiopia, department of Share Exchange and later the bank allowed other financial institutions and few private share

getting Image

dealers known under the name of Share its pioneering efforts to provide an Dealing Group to participate in shares organized market for companies trading. whose shares were relatively widely held. Workable trading practices The Share Dealing Group was engaged and standards had been developed in facilitation of transaction of shares and a smoothly operating market and other services in the share markets. mechanism had been created.

The financial institutions that played an intermediary role in transferring and delivery of traded shares were the Since the abolition of the Addis Ababa Addis Ababa Bank, the Commercial Share Dealing Group in 1974 by the Bank of Ethiopia and the Ethiopian military government ruling Ethiopia Investment Corporation. They provided at that time, no capital market has over-the-counter share dealing services been in place in the country. For and enjoyed a significant confidence of more than forty years, Ethiopia has the private investing community. been trying to have its own financial market but didn‘t succeed. The The stock market was administered need for financial markets, as the by the National Bank of Ethiopia next step in the on-going financial which was the known regulatory liberalization is gaining consensus body in the Ethiopian financial sector. among various stakeholders in the According to scholars the stock country. A number of efforts, notably market was moderately successful in by scholars from academia, Addis

Ababa Chamber of Commerce and Sectorial Association (AACCSA) and National Bank of Ethiopia (NBE) are being made towards institutionalizing the financial market.

Virtually all of the researchers came up with findings in favor of establishing financial markets specially stock exchanges in Ethiopia. It was also indicated by researchers that the National Bank of Ethiopia reportedly undertook a study on the Feasibility of Establishing Securities Exchange Market in Ethiopia and also prepared a draft Securities and Exchange proclamation.

Furthermore, the Addis Ababa Chamber of Commerce and Sectorial Association (AACCSA) have

Abyssinia Business Nework ነሃሴ 2011 / August 2019

15

conducted a research on the Market Potential Assessment and Road Map Development for the Establishment of Capital Markets in Ethiopia where the findings highlighted the significance and inevitability of financial market in Ethiopia.

When studying the economies of developing countries, the first thing that becomes apparent is the existence of immense and, to a considerable extent, unemployed human resources as well as an acute shortage of capital which is a major constraint in the realization of economic development. Recognizing the role that securities markets play in mobilizing capital, more than a dozen African countries have established stock markets, excluding Ethiopia.

In a study undertaken by the African Union on the establishment of the Pan African stock exchange, stock exchanges are said to have a reputation for encouraging greater economic dynamism and producing higher levels of wealth by providing investors with the opportunity to share the risks and profits of enterprises. Thus they improve market mechanisms in order to raise and allocate scarce financial resources, mobilize local capital, attract foreign direct investment and allocate resources to projects likely to be beneficial to the economy.

Although some analysts view stock markets in developing countries as “casinos” that have little positive impact on economic growth, recent evidence suggests that stock markets can give a big boost to economic development. The stock exchange is a necessary aspect of commerce that helps quickly and easily trading of assets. It is an alternative means for securing capital helping governments and private sectors to mobilize capital to 16

finance a wide range of infrastructure thereby satisfying social needs as well as economic growth and jobs. Stock markets are perceived as a tool for the promotion of the financial sector and the development of private savings, thereby supporting the non-monetary funding of the economy and the fight against inflation.

Challenges of Stock exchange 1.

Share Selling and acquisition Experience: companies and shareholders sell their shares for different reasons among which are to solve current finance shortage, to buy an asset, support investment or expect a risk of loss. As per own survey, most share owners acquired their shares through initial public offering and it took them more than 15 days to end the acquisition process. When they want to sell shares they will directly approach and sell it to share buyers or sell it to relatives or friends.

Share companies also issue shares indifferent ways like initial public offering to the public or the existing shareholders and managers, but they did not hold any other companies share.

2.

Share selling and Issuance Plan: Even though shareholders and share companies plan to sell their shares they usually face problems in getting the buyers for their shares at a fair price and at the time where they need the money most. But if there were well organized stock exchange market it will provide ready market whereby investors could easily buy and sell their share which implies that there is a much need of the market, consulting and assistance from the shareholders.

3. Challenges

Abyssinia Business Nework ነሃሴ 2011 / August 2019

in

Selling

getting Image

Shares:Looking into the challenges and prospects of establishing stock exchange in Ethiopia, let’s first see the challenges that the shareholders face in selling their shares.

Concerning the share price most of the shareholders agree that the share price is not fair that lead them in devaluating their share value and does not want to buy back the shares. Most of the surveyed share companies received compliance concerning selling back the shares to them, but the companies solve such issues by consulting the shareholders to stick with the share and convincing them the prospected future of the companies’ income and return which implies that share selling process in Ethiopia is not easy

Knowledge and awareness about stock exchange market It is mandatory that all of the respective mangers in the share companies should have to have knowledge in relation to the stock exchange but a number of shareholders do not have knowledge of stock exchange and this implies that there is a low level of public awareness about securities markets in Ethiopia and the degree of awareness by potential investors of investments in stocks and bonds affects demand for securities is not satisfying.

Prospect of establishing a stock exchange market Tessema (2003) in his article entitled “Prospects and Challenges for Developing Securities Markets

in Ethiopia: An Analytical Review” mention enhanced savings mobilization, promote efficient financial system, improve capital structure, allow de-concentration of ownership, improve accounting and auditing standards, provide effective tools for monetary and fiscal policy and help privatization efforts as an advantages or benefits of establishing security market (stock exchange). Other scholars also agree that establishment of stock exchange contributes to economic growth, it encourages investment, protect investors by upholding rules and regulations, help traders buy and sell quickly and efficiently and so on.

Advantages of establishing a stock exchange: Majority

of the respondents respond that establishment of stock exchange in Ethiopia will have the following advantages: • It contributes to the economic growth of the country • It will give public confidence to invest in share companies • It can be used as one alternate source of finance • It will attract more domestic and foreign investors • It will provides a ready market for investors to buy and sell shares • Promotes saving habit • Improve monetary and fiscal policy as well as accounting and auditing standards • It will facilitate efficient financial system and privatization.

It is believed that the current economic condition of Ethiopia ready for

Abyssinia Business Nework ነሃሴ 2011 / August 2019

17

establishing stock exchange market backed by Investors expectation and willingness to invest and the current country progress in terms of economic structure, Gross Domestic Product (GDP), employment rate and inflation. Most shareholders and share companies support the idea of establishing stock exchange market with a full government controlled structure.

Things to be done first before establishing the market Concerning what should be done first before establishing the stock exchanges market, it is believed that there has to be a major economic reform and police formulation by developing rules and regulation, Public awareness about stock exchange through giving training and education has to be done, the country needs to develop advanced technological systems that can facilitate the process and getting experience from other countries is another formality in which there are a number of areas that Ethiopia has to adopt from other countries that have already institute stock exchange market, this are can be

in terms of the development process, technology, financial transaction process, controlling and security and education and training.

institute the market.

Conclusions

• By understanding the bright prospect, the government has to consider establishing stock exchange market • Attention has to be given for creating awareness as majority of the shareholders have no knowledge of stock exchange.

• Accounting and auditing standards has to be developed to higher level • The government has to share the best practices of other countries experiences that have emerging stock exchange markets • Supporting has to be there for further research into the role • The government should allow privatization to the public through shares instead of transferring it to the higher – bidders • The government has to top up on the good lessons of EXC

• There is a demand of stock exchange market, even if there is a problem of awareness in the shareholders and society.

• The current economic condition of Ethiopia is ready for establishing the stock exchange market even though there are some requirements that should be fulfilled.

• Selling a share is difficult as there is difficulty to get the buyer easily and fair price.

• Share companies are not obligated to re-deem the shares; they try to help the shareholders by convincing them to hold on to it for longer.

• Ethiopia will benefit a lot from having the stock exchange market.

• Government has to be the owner of the market • There are a lot of areas that that country has to share and adopt from other countries who are already

Recommendations For Governments:

For Share companies: • By understanding stock market is a relatively cheap source of finance when compared to the money market and other sources, there should be continuous effort to motivate the public about the necessity of the exchange market.

• Share companies has to start proactively to sell and buy shares of others and their own • They have to push the government to consider establishing the market 18

Abyssinia Business Nework ነሃሴ 2011 / August 2019

Berhan Bank’s

Donation

Source Brehan Bank

R

ealizing the need to strengthen efforts in participation of community development, Berhan Bank continues to discharge its social responsibility by responding quickly to call for charity and social development.

In an initiative that has recently been started by the Addis Ababa City Administration with an intent of equipping public schools with in Addis Ababaeducational materials for the upcoming 2018/19 academic year, Berhan Bank’s Board and Senior Management team have donated dozens of exercise books and pens at the presence of the City Deputy Mayor at the Mayor’s Office on a ceremony held on 30th July, 2019.

In a press statement it has sent to ABN, the bank disclosed that while receiving the donated 350,000 exercise books, each with 50 pages, and 150,000 pens from the Board of Directors and the President of Berhan Bank, Deputy Mayor Engineer Takele Uma has expressed his appreciation to the bank on taking the pioneer initiativein the bid to helping the future aspirations.

Photo Credit:Mayor Office of Addis Ababa Facebook page (Pictured Left to right Arc. Daniel Assefa,Board Director, Gumachew Kussie, Abraham Alaro, Eng. Takele Uma and Feven Teshome, Addis Ababa City Administration Press Secretary)

Up on presenting the school materials to the Deputy Mayor, Chairman of the Board of Directors, Gumachew Kussie on his behalf has said that apart from the bank’s very vision of making profit, Berhan Bank’s ultimate mission is to imprint its legacy especially in such corporate social responsibility laden activities.

The president of Berhan Bank, Abraham Alaro,has further said the bank is honored to participate in such heartwarming and valuable occasions and he says the donations are worth Birr 5 million and he further recalled alarge sum of exercise books donated by the bank to Muday and Merry Joy Charity organizations for the 2017/18 academic year a year ago.

He also said that in an effort to execute its social responsibility, the bank had contributed a considerable amount of money to internally displaced communityboth atthe federal and regional levelswhile supportingdevelopment projects, vowing that the bank will continue supporting similar initiatives.

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interplay between the regional integration of Africa, structural transformation and the role of rules of origin, this chapter adopts a case-study approach, focusing on how the African Continental Free Trade Area could affect selected regional value chains and how rules of origin shape the space in which this process takes place. In this respect, although the selection of the sectors analyzed is inevitably subjective, it was informed by four broad criteria: sectoral coverage, relevance to intra-African trade, importance for continentally agreed policy frameworks and/ or national development plans, and representation of distinct legal elements of the formulation Addressing these issues and assessing and implementation of rules of the impact of different rules of origin origin. in Africa is a challenging Endeavour for three reasons. First, it implies The advantage of a caseconsidering the impact of rules of study approach over other origin in an increasingly complex methodologies is that it does not context of international trade, where rely as much on systematic the emergence of regional and global data that is difficult to obtain; value chains has made producers moreover, it speaks more interdependent across countries, clearly to the economics of through trade in intermediate products. each regional value chain. A Second, the limited access to legal caveat applies, however, to texts and the lack of data on preference the case-study approach, as it utilization for most regional economic does to other ex ante simulation communities in Africa make a thorough techniques such as computable assessment even more challenging. general equilibrium models. By Third, there are a number of technical construction, the case study looks and analytical complexities involved solely at the impact of rules of in accurately quantifying the effects of origin on existing trade relations rules of origin on trade. For example, (i.e. the intensive margin); it is the same legal formulations can have considerably more difficult to Different impacts across various assess how a given set of rules sectors; further, there are several affects the entry barriers and econometric issues related to the opportunities for new entrants identification of the impact of rules of (i.e. the extensive margin). origin.

Overall, the chapter finds that the To overcome these constraints and impact of rules of origin is highly provide more concrete insights into the context specific,

The African Continental Free Trade Area, regional value chains and rules of origin

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varying as a function of the country and sector considered, their input– output structure,the complexity of production and the governance and geographical features of the value chain. Nonetheless, some general principles can be drawn from the analysis. First, it is important that rules of origin be as business friendly as possible, in the sense of minimizing the cost of compliance, for any given level of restrictiveness adopted. Second, rules of origin should be simple (in the sense of being clear and understandable), transparent, predictable and tradefacilitating and should be applied in an impartial manner. Third, it is of paramount importance that rules of origin formulation be informed by a thorough understanding of the productive sectors involved and by due consideration of the structural asymmetries across the countries in the Continental Free Trade Area.

The chapter consists of six case studies that are presented in increasing order of sectoral complexity, namely tea, cocoa and chocolate products, cotton textiles and apparel, beverages, cement and the automotive industry. The final section contains a synthesis of the discussion, with suggested policy recommendations.

Tea value chain The tea value chain is a compelling example of the key channels through which the current trade regimes of Africa including in relation to rules of origin affect its integration and transformation agenda. It also provides some insights into the prospects that the African Continental Free Trade Area may have in reshaping the scope for the emergence of regional

value chains. The relative simplicity of the production process and of the associated legal framework relating to rules of origin make the analysis of the value chain fairly straightforward from a technical point of view. At the same time, tea is a key cash crop, especially in Eastern and Southern Africa, and widespread consumption is high. Further, the study of African regional value chains makes it possible to identify some of the main constraints imposed by the current trading arrangements, as well as some potential gains achievable under the Continental Free Trade Area.

The tea value chain can be subdivided into five stages: production, processing, trading, blending/ packaging and retail. Tea is made of leaves from an evergreen shrub (Camellia sinensis) that is cultivated mainly by smallholders. Plucked leaves must be rapidly brought to the processing factory, where they are withered and undergo different types of processing, depending on the tea varieties. In the case of black tea, leaves are either crushed or rolled, then fermented (to obtain the classical dark colour through the oxidation process) and finally dried; green teas are steamed or pan-fired to stop the fermentation process before being rolled and dried. Once processed, leaves are then sold to international buyers, which ship them overseas and perform the blending and packaging, and at times even the retailing. It is estimated that 70 per cent of global tea production is sold through auctions; the rest is mainly traded within vertically integrated companies that retain control of the entire processing phase (Food and Agriculture Organization of the United Nations (FAO), 2018a High levels of vertical integration

and horizontal concentration characterize the tea value chain.

The three largest companies, Lipton (Unilever), Tetley (Tata Global Beverages) and Twinings (Associated British Foods) control one fifth of the world market (FAO, 2018a; FAO, 2018b).

This is particularly pronounced in relation to the downstream stages of the value chain. The governance structure is thus a key determinant of the extent to which participation in the tea industry translates into broader developmental gains among the players involved, especially smallholders (UNCTAD, 2015c).

In particular, brokers and intermediaries play the crucial role of linking often-dispersed producers with international buyers; they can greatly enhance the transparency and inclusivity of the chain by sharing with such buyers valuable information on prices and quality requirements, or by favouring the diffusion of key inputs (FAO, 2014; FAO, 2018a).

Kenya is one of the most successful examples of the inclusion of smallholder farmers in the tea value chain, owing to deliberate efforts to enhance their stake in the governance of the processing and marketing stages (FAO, 2014). They account for over 70 per cent of national tea production, with half a million people deriving their livelihood from this cultivation. Kenyan tea growers deliver their products to buying centres which also function as quality-control points from where they are transported to tea factories, each receiving tea from roughly 60 buying centres.

Each tea factory is a separate

company, fully owned by some of the farmers that supply it, and all of them in turn own the Kenya Tea Development Agency. Whether they hold a share in the factories or not, smallholder producers are required by law to sell through the Agency, which provides inputs to farmers and management and secretarial staff to the factories and is tasked with marketing the tea. Since most of the sales profits flow back to the smallholder tea growers, Kenyan tea farmers benefit not only from higher factory-gate prices for made tea (processed tea in bulk) than in neighbouring countries, but they also capture a larger share of it 75 per cent, compared with 25 per cent (Trade Law Centre, 2017).

After a decade of robust growth, the global tea industry was estimated to be worth over $14 billion in 2016 (FAO, 2018a). This expanding trend, mainly caused by buoyant demand in developing countries, is expected to continue at a rate of 5 per cent per year until 2024. Simultaneously, the dynamics of the tea value chain have evolved radically. After years of “commoditization”, when undifferentiated price competition was the driving factor, there appears to be a gradual shift towards greater differentiation and higher value added products, which can accrue substantial price premiums on the international market.

In this respect, certification schemes could enable the emergence of a broader range of diversified products, especially in niche segments, such as organic tea and geographical indications.

This could improve the inclusivity of the value chain, even though there is considerable variability

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across certification schemes and their different outcome in terms of broader developmental gains.

While Asian countries such as China, India and Sri Lanka retain a dominant position in the global tea market, several African countries are playing an increasingly visible and dynamic role. Africa accounted for over 20 per cent of global tea exports and 12 per cent of imports in 2015–2017. In this respect, Kenya is by far the leading African country as the world’s third-largest tea exporter, with a market share of approximately 17 per cent during the same period.

Tea represents an important cashcrop export for a number of other African countries, especially in Eastern and Southern Africa .

In contrast, Northern African countries are the main importers of tea in Africa. Egypt and Morocco alone account for over half of total tea imports, followed by Libya, South Africa and Ghana .Between 2015 and 2017, about 43 per cent of tea imports to Africa was sourced from China, another 40 per cent from within Africa; the rest originated primarily from India and Sri Lanka. While over 90 per cent of tea exports from Africa are made up of black tea (overwhelmingly in bulk, under HS code 090240), green tea, widely consumed in the Maghreb region, accounts for over 40 per cent of the tea imported to Africa.

Overall, the intra-African market accounts for roughly 25 per cent of tea exports from Africa; the remainder is sold mainly to Kazakhstan, Pakistan, the Russian Federation, the United Arab Emirates, the United Kingdom of 22

Great Britain and Northern Ireland and the United States. Even though Kenya only exports 15 per cent of its tea to the rest of Africa, it is the leading player in intraAfrican trade, mainly because of its exports to Egypt ($173 million), and to a lesser extent, Nigeria ($12 million). The pivotal role of Kenya in intra-African tea trade goes beyond mere export flows; its prominence also stems from the importance of Mombasa as a venue of dollar-based tea auctions, where tea from the whole subregion is traded under the auspices of the East African Tea Trade Association (Trade Law Centre, 2017; Wambui, 2015). Over 90 per cent of the tea exported from Rwanda and Uganda and 40 per cent of the tea exported from Burundi and the United Republic of Tanzania are directed to Kenya, where the tea is auctioned along with domestic produce. South Africa also imports significant amounts of tea from other African countries, especially Malawi, the United Republic of Tanzania and Zimbabwe. Part of such imports are destined for internal consumption, and part for re-export to neighbouring markets, often after blending and packaging.

Though tea production is largely centred in Eastern and Southern Africa, the regional value chain extends well beyond COMESA, EAC and SADC. Many existing and potential trade corridors span across different regional economic communities and might thus be unlocked by tariff cuts envisaged in the context of the African Continental Free Trade Area. shows through box-plot diagrams21 the distribution of

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simple average tariffs levied by African countries on tea imports, reporting the most-favoured nation tariff rates and intra-African preferential tariffs . For each importer, the difference between the most-favoured nation rate and the preferential tariff provides an indication of the potential preference margin that could be accrued through the African Continental Free Trade Area.

Two main observations First, apart from a few countries such as Egypt and South Africa, it appears that most-favoured nation tariffs remain substantial in the African context, even for a product that is not particularly sensitive, such as tea.

This is especially relevant since many of the main African tea exporters trade with key regional markets such as Algeria or Ghana and other ECOWAS countries at most-favoured nation rates. In this context, the establishment of the African Continental Free Trade Area could significantly boost intra-African tea trade, as it could extend preferential treatment across existing regional economic communities, resulting in sizeable preference margins. However, these potential gains do not depend solely on supply responses from tea producers, but also on the capacity to broaden the range of available products, notably by moving into green tea production to satisfy demand in the Maghreb region and by enhancing value addition through blending, flavouring, final packaging or the preparation of ready-to-drink tea (FAO, 2018a).

Not all these diversification options may be attainable in the short term, but some related activities, such as green tea processing,

packaging and blending, require relatively smaller enhancements to existing productive capabilities.

Second, consideration of the prevalence of overlapping regional economic community membership also points to some of the flaws of the existing configuration, which could be addressed by the Continental Free Trade Area.

Given the differential extent of tariff liberalization in such communities, overlapping membership of different regional economic communities has important consequences in terms of different tariff rates faced by exporters, a situation with the potential to hinder the viability of regional value chains, or at the very least, to shape their configurations in a suboptimal manner. For instance, tea exports from EAC to Egypt are subject to different tariffs. This depends on whether the exports originate in Kenya, which like Egypt, is a member of COMESA, or whether they originate in the United Republic of Tanzania. As a member of EAC and SADC, but not of COMESA, the United Republic of Tanzania is subject to the mostfavoured nation tariff. Likewise, Burundi, Rwanda, Uganda and the United Republic of Tanzania benefit from duty-free treatment for African LDCs with regard to exports from Morocco.

In contrast, tea exported from Kenya is subject to a 2.5 per cent tariff. While understandable from a historical perspective, these kinds of disparity may inadvertently disrupt the smooth working of EAC trade integration and create incentives for trade deflection.

Given the situation described above, it would be worthwhile to compare the rules of origin provisions for tea products across selected regional economic communities, with a view to examining commonalities and/ or differences, in an attempt to determine how they have shaped the corresponding value chain and to assess the scope for harmonization.

The summary comparison in table 5 suggests that even for a fairly simple product such as tea, there is a considerable degree of variability in the rules of origin discipline across the regional economic communities. Such variability is even greater when considering some of these, such as ECCAS and ECOWAS, which have general rules that are formulated in terms of uniform percentages of value added content applied across the board. In principle, among the regional economic communities considered in table 5, the degree of restrictiveness varies between EAC, where all tea must be wholly obtained; SADC, where a more permissive regime applies to black tea; and COMESA,where variable percentages of non-originating inputs can be utilized without prejudice to preferential treatment, depending on which criterion is utilized to prove originating status.

In comparison, the rules of origin provisions of the European Union Generalized System of Preference scheme are even more liberal, as

they do not require a change in classification.

While the political economy motives behind the more restrictive regime in EAC are understandable in light of tea’s importance for the subregion, the interplay of these different regimes has a determining effect on the market potential of the region. For instance, the pivotal role of Kenya in the regional value chain is not only due to its dominance in terms of tea production, but is also partly facilitated by its overlapping membership of COMESA and EAC. Although blending does not confer origin, the relatively looser rules of origin criteria adopted by the former imply that tea from the United Republic of Tanzania may, for example, be exported to Kenya duty free under the EAC arrangement, then blended with an equivalent value of Kenyan tea in Mombasa and again exported duty free to other COMESA countries, provided that the value of nonoriginating material is less than 60 per cent. The same option, however, would incur higher costs if blending took place in Dar-esSalaam, as the United Republic of Tanzania is a member of EAC, but not of COMESA; hence the final product would not be eligible for COMESA treatment. At the same time, the differences in rules of origin provisions might inadvertently have contradictory implications in practice. For instance, the same blend of 70 per cent Tanzanian black tea and 30 per cent non-African black tea may be considered an originating product within SADC, but not within EAC, with ensuing effects on the level of market access across different African countries and regional economic communities.

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LALIBELA

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alibela founded in the late 12th century is a small northern town nestled on the top of a mountain with stunning views of the surrounding landscape. The town is world renowned for being home to eleven incredible rock hewn medieval monolithic churches, each one carved and excavated entirely out of stone below ground level! Lalibela is considered one the most sacred religious tourism sites of the world and a UNESCO World Heritage Site; considered the 8th Wonder of the World. Visiting Lalibela is truly a Biblical experience with numerous religious processions, festivals and celebrations; colourful sights and sounds of priests, pilgrims and hermits. Narrow tunnels and walkways 26

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connect the Churches some of which are adorned with beautiful wall murals. In addition to viewing these churches, there is also exhilarating trekking in the mountains and hills and as well as exploration of other ancient stone churches and monasteries.

King Lalibela commissioned the building of these churches, with a vision to create a New Jerusalem and attract pilgrims. Legend has it that Angels assisted stonemasons by continuing their work at night. King Lalibela abdicated the throne to become a religious hermit and he is regarded today as one of Ethiopia’s greatest saints.

BALE

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ocated in the south eastern part of Ethiopia, Bale Mountains National Park stretches over 2400 sqkms primarily featuring the Harenna Escarpment and Forest and the Sanetti Plateau. The area is renown for its incredible diversity of wildlife.

The most well known animal that calls Bale home is the endangered red and white Ethiopian wolf. Other animals include the mountain Nyala, a large horned antelope, Bale monkey and the forest hog allegedly the world’s largest swine. Bale is recognized as one of the African continents top five places to find exotic birds (six endemic species and 11 other geographically unique species). Bale is known to support the only

known sub-Saharan breeding populations of golden eagle, ruddy shelduck and red-billed chough.

Bale Mountains National Park is notably an extremely important area of biodiversity; the area is known for its lush evergreen forests and woodland, bamboo groves, moorlands, rivers and waterfalls as well as an abundance of grassland providing the ideal habitat for a range of animals and birds. Bale’s 1,300-plus plant species include 160 Ethiopian endemics and 23 unique to the park.Bale is an excellent place to experience a unique and colourful Safari across this beautiful and diverse region.

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Logistics challenges facing eCommerce in Africa

by Josephine Wawira

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According to Euromonitor, the world’s fastest growing economies by 2030 will be in Africa. This consequently makes the continent the next big e-commerce market. And as this positive narrative continues to place Africa as a top investment destination, the need for advanced logistics systems has become inevitable. The growth of e-commerce will significantly depend on the quality and efficiency of logistics networks; from intra and cross trade to financial transactions in payment of goods and services.

When writing the African e-commerce story, I often leap at the chance to explore only the enviable milestones the continent 28

has made. Nevertheless, there are also required to keep in constant contact still exist formidable challenges with clients when delivering products, to especially in logistics, a vital receive further directions while en-route. constituent of the industry.

While generally Africa’s infrastructure lags The African Development behind that of its counterparts including Bank, in its 2019 African America and Europe, it is worth of note that Economic Outlook, notes that each country has its own value proposition. “trade costs due to poorly In 2018, the World Bank’s Logistics functioning logistics markets Performance Index placed South Africa, may be a greater barrier to Kenya, Rwanda, and Côte d’Ivoire as the top trade than tariffs and nontariff 4 best performing countries in Africa, while barriers”. This side of the story Somalia, Sierra Leone, Eritrea and Zimbabwe must also be told; if we are to were at the bottom 4. find sustainable solutions to In most African countries, the result of the poor road infrastructure is heavy traffic jams that lead to delayed deliveries, canceled orders for the on-demand services and subsequently loss of revenue. Alternative modes of transport have therefore come into play in some markets like Kenya and Nigeria, with the use of easy to navigate motorcycles, popularly known as Bodabodas. With about 1.2 million motorcycles in the passenger transport business, Kenyan ecommerce companies have strived to tap into this market by using Bodabodas to swiftly deliver products especially within busy cities. what could be the gateway to “There are huge opportunities for logistics growing Africa’s e-commerce to grow e-commerce, but few established by leaps and bounds. players exist in the market,” notes Apoorva Kumar, Jumia’s SVP of Logistics. Present Unsatisfactory National in 14 African countries,Jumia is one of the Address Systems and ecommerce players building logistics and Transport Infrastructure fulfilment infrastructures to ease delivery of One of the biggest logistics’ products to consumers using both vehicles hurdles holding back the and bodabodas. industry is the lack of proper In Rwanda, companies like Zipline are leading national address systems in the way in commercial drone deliveries. most African countries. This, While initially focused on delivering blood coupled by poor road networks, to remote health centers that are otherwise make it even harder to difficult to reach fast due to Rwanda’s hilly conveniently deliver products terrain; it is expected that Zipline’s drones will to customers. Consequently, in future be used in other sectors including companies have had to rely e-commerce. Back in Kenya, Astral Aerial on fairly descriptive addresses Solutions is using drones for among other and landmarks provided by the services, last mile deliveries. The company customers during the initial aims to, in its words, “open up Kenya’s hard stages of the online purchase to reach regions to new and exciting business process. The delivery persons opportunities”.

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The possibilities for a better future in logistics, in my view, are endless! And as Apoorva reiterates, companies cannot solely build a successful logistics system. “It requires integrating various systems and partners to create a big enough network to serve the growing needs of the e-commerce consumers,” he says, calling for both private and public partnerships to this endeavor.

What Then, Does the Future Hold?

Data by logistics consulting firm Knight Frank, shows that the cost of transportation represents 50% to 75% of the retail price of the goods.

This alone, underpins the demand for long-term strategies to the

logistics challenges in Africa.

From delayed deliveries between local destinations to sluggish growth of crossborder trade, the effects are being felt across the board.

companies in Africa to achieve sustainable bottom-line growth, there needs to occur more tech-empowered handshakes between multiple service providers across markets.

Modern online retailing is headed towards pre-orders, requiring mature infrastructure for both small and medium businesses. This will help meet the packaging, storage, distribution, freight and lastmile-delivery requirements.

Though challenging, Africa is a land full of commercial opportunities; causing a scramble for a piece of the pie among international investors.

Therefore, for e-commerce

Governments have the responsibility to create one-window-policies that empower digital payment solutions as well as logistics infrastructure including road networks, air cargo handling systems and warehouses among others. Similarly, e-commerce and logistics powerhouses like Jumia should commit to empower more upcoming entrepreneurs. They must also use their leading positions to continue paving the way for economic integration in Africa.

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THERE’S NEED FOR MORE DISRUPTION IN

AFRICA’S TECH SCENE

By Olukayode Kolawole

For most people living outside Africa, they imagine the continent as the home of poverty, corruption, internet fraud, infrastructure deficit, and everything that describes underdevelopment, marginalization, oppression, bad leadership, insecurity, diseases, and many more. Although the continent is truly beset with some perennial development issues, some of these notions are preposterous and not entirely peculiar to Africa. No doubt, for a continent that is richly blessed with numerous natural resources, the economies of the countries within it should be enviable and have the capacity to truly compete with the First World countries.

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An estimated 473 million people are connected to the internet in Africa,

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Home to 54 countries, with Nigeria and South Africa having the biggest economies, the continent has a population of 1.2 billion people, projected to rise to 2.5 billion by 2050. It is the second most populated after Asia and second growing economy in the world after East Asia, with a 3.5% annual growth rate. Average age is about 20 years, and 30% of its population make up the middle class which is expected to grow by 80% between 2020 & 2030. An estimated 473 million people are connected to the internet in Africa, which represents 36% of its population, while 1 billion people who have access to mobile phones, represents 80% of its population.

There are a number of laudable achievements the continent has earned for itself. These achievements, although rarely spoken of, have positioned the continent on a global map, earned it positive recognition from First World countries, changed its narrative to something better and more appealing, and made it a sought-after destination for business investment, leisure and entertainment.

This article will dwell on the business investment opportunities that have changed the fortunes of the continent, and how these businesses are impacting and transforming the quality of lives in Africa.

E-commerce is one of the

business sectors powering the engines of commerce and trade in the continent. It has brought many untold opportunities for both the consumers and the micro, small, medium enterprises. In Nigeria for instance, Jumia paved the way for e-commerce in 2012, provided consumers access to hundreds of thousands of products, and expanded access for discerning entrepreneurs who quickly took advantage of the many unique opportunities presented by these platforms, to reach more consumers and sell more products. The convenience of e-commerce made a compelling case for early adoption of online shopping by customers who until then only shopped from brick and mortar stores.

The bold move by Jumia and other ecommerce players paved the way for many e-commerce startups in the country today.

Although many of these platforms have been phased out due to a number of challenges, the truth still remains that the story of how Jumia led the way for e-commerce in the country continues to reverberate the entire sector, and has today, yielded many positive results.

It was not too long after Jumia launched in Nigeria that it expanded its operations to 14 other African countries, in which it has operations today, covering 75% of the entire continent’s GDP, and about 75% of internet users.

The Case of e-commerce and Jumia Yet, the continent is still perceived to be growing slowly

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compared to other developed continents such as Europe, Asia, South & North America when it comes to online commerce. For instance, online retail penetration accounts for less than 1% of all the transactions in Africa, compared to 12% in the US and 20% in China. There is a ratio of 1 shop to 67,000 Africans versus 1 shop to 1,000 Americans. The shift from physical stores to online stores is happening gradually as a result of ecommerce platforms becoming increasingly relevant to both the consumers and sellers in Africa. Let’s use Jumia, a Pan African e-commerce platform as a yardstick to illustrate this gradual but steady growth.

On the Jumia platform as at March 31st 2019, there were over 81,000 active sellers across Africa selling over 30 million products to about 4.3 million active customers, according to the company’s prospectus on the New York Stock Exchange. Who are these sellers, and where did

the consumers come from? Sellers who until 2012 were primarily selling offline and reaching very few consumers within their geographical proximity. Same consumers who grew up going to physical stores to make a purchase, wasting time and effort, and in some cases money. These same traditional offline shoppers and sellers embraced a convenient method of shopping, started to spend money and time saved from walking a distance to physical shops on other priorities, whereas the sellers started reaching more buyers, even those outside of their geographical reach.

Where are the products they sell sourced from? The sellers and consumers are not the only beneficiaries of e-commerce. The economy of the various countries with ecommerce presence benefits the most through the promotion of locally made products i.e. Made in Nigeria. Majority of the sellers on the Jumia marketplace sell locally made products, especially fashion

items. These local producers enjoy unprecedented exposure and access to millions of customers across Africa.

This therefore makes for a strong case because 75% of most African economies derive their revenue from micro, small and medium enterprises.

It thus means that the more exposure these local businesses enjoy on the Jumia platform, the more revenue will be generated for the countries.

As a result of the precedence set by the pan African ecommerce platform Jumia, investment opportunities started knocking on the continent. Established ecommerce platforms in other regions, such as Amazon, started eyeing the many opportunities to establish its presence in Africa. For instance, Souq, a Middle East player was bought

by Amazon in 2017 to establish a presence in Egypt; Naspers owns Takealot in South Africa, competing with Jumia’s fashion retail platform, Zando. Others are local competitors such as Mall for Africa, Afrimarket in West Africa, and KiliMall in Kenya.

From time immemorial, Nigerians, and maybe some Africans, prefer to

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physically see and inspect a product they are buying before making a purchase; it was more cultural and behavioural than instinctive. As a result, many thought the idea of e-commerce might not hold waters in the continent because unlike the physical stores, it doesn’t provide an opportunity to feel and touch a product before it is purchased. Yet, over 4 million Africans today enjoy the convenience of ecommerce, especially due to the provision of Cash on Delivery as a mode of payment, and return policies put in place by most platforms including Jumia.

But, the pie needs to grow. Less than 1% of all retail transactions in the entire continent is still a very small pie. In the words of Jumia co-CEOs Sacha Poignonnec and Jeremy Hodara, the company will continue to remain focused on its core operations in driving consumer adoption and engagement on its marketplace, will continue to invest in infrastructure such as warehousing & logistics. It will also continue to increase the penetration of JumiaPay, its proprietary payment solution which is a one-stop solution for any customer that buys on Jumia and enables him to pay with any of the available payment methods in the respective markets.

210 African tech startups raised a total of US$334.52 million in funding in 2018 from foreign investors.

Jumia’s operations in Africa have proved sceptics wrong that there’s a viable opportunity for 32

ecommerce to help sellers grow their businesses exponentially by giving them access to millions of consumers; to help consumers find any product they desire from a large pool of product assortment, which the company continues to expand to accommodate new consumer demand; and to help individual and large logistics companies who are part of the Jumia logistics network grow their businesses and make more deliveries. In fact, in 2018 alone, through these logistic partners, Jumia made 14.6 million deliveries across Africa.

e-commerce, e-health, transport, logistics and agri-tech startups raising funding as investors saw opportunities in a large number of areas (Source: CNBC Africa).

Gabriella Mulligan, co-founder of Disrupt Africa, said: “2018 was an incredible year for tech startups in Africa. The continent’s entrepreneurs have grabbed the attention of investors, accelerators, and media both locally and globally this year with their innovative solutions and business models, and it’s great to be

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According to the African Tech Startup Report published by Disrupt Africa, 210 African tech startups raised a total of US$334.52 million in funding in 2018 from foreign investors. The number of startups that raised funds grew by 32.1 per cent, and total funding jumped by an impressive 71.5 per cent. In terms of sectors, the fintech space continued to dominate, remaining a clear favourite among investors and, at US$132.75 million, accounting for 39.7 per cent of total funds raised.

This was an increase on previous years, but nonetheless, there are strong signs of progress in other sectors, with multiple ed-tech,

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able to report on such strong results across our ecosystem.”

To conclude, Africa has more to offer than the stereotype image that has been created over the years.

It is our responsibility first as Africans, as stakeholders and even governments to believe and build on the achievements the continent has made and to focus on the innumerable opportunities it possesses. This way, Africa will not only continue to attract both domestic and foreign investments, but will also further encourage budding entrepreneurs to trust in a system that aims to stimulate economic and job growth.

Indian MSME Opens Ethiopia Chapter By staff writer It was a great moment for the Indian Investors whenMicro, Small and Medium Enterprise (MSME) Chamber of Commerce, New Delhi, India formally announced the formation of its Ethiopia Chapter in a gathering of prominent Entrepreneurs here in Addis Ababa, according to a press release sent to ABN.

hold top management positions of their respective companies.

Sunil Verma, General SecretaryMSME Chamber of Commerce, Ethiopia Chapter welcomed P.Teckwani- its President-East & West Africa(26 countries) and Amit Kumar Sinha- President Ethiopia Chapter.

The meeting was chaired by its General secretary Mr. Sunil Verma who often suggested to the audience to volunteer their services with full vigor and enthusiasm and make the most of such Chapter in Ethiopia.

Mr.P.Teckwani, President of MSME Chamber of Commerce. East and West African countries,Mr. Amit Kumar Sinha-President MSME Chamber of Commerce, Ethiopia Chapter and Mr. Sunil Verma, General Secretary of the same were present amongst the office bearers of the Chapter.

their views and gratitude for this most needed initiative.

The press release further stated that Mr. Amit Kumar Sinha, Ethiopia Chapter President promised the audience that he would try and create so congenial an atmosphere for the existing investors to focus on their enterprise without any unusual risks and take it to newer heights of glory and contribute to the development of the country.

Mr. Sinha also expressed his deep desire to facilitate other good MSME from India to come to Ethiopia and invest here and generate a number of employments for Ethiopians, besides contributing to the efforts in making Ethiopia self-sufficient country in the respective fields.

Mr. P. Teckwani reiterated MSMECC, Ethiopia Chapter’s commitment to facilitate smoothness between the entrepreneurs of both India and Ethiopia

Photo file On the 4th of August 2019, the MSME Chamber of Commerce, Ethiopia Chapter announced the names of its office bearers in the presence of around 50 Entrepreneurs of Indian origin who have either invested in Ethiopia or

The press release also noted that the first meeting of the Chamber of commerce, which was interactive in its nature, was highly appreciated by all the attendees and many volunteer speakers. Furthermore, the office bearers came forward to express

to encourage the future investments in Ethiopia from 26 African Countries and India. He also assured all the investors of Indian origin to look for an amicable solutions to their problems related to the functioning of the said enterprise.

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Mulu Eco-lodge: Pioneering Unique Trend in Ethiopia

By Aklile Tsige

Photo by Mulu Eco Lodges

Responsible tourism can be a driver of sustainable development and the preservation of natural and cultural heritage, but if unplanned and poorly managed it can be socially, economically and culturally disruptive and cause damage and degradation to sensitive ecosystems, landscapes, monuments and communities.

Indigenous and local knowledge and cultural traditions can contribute to climate resilience. There is widespread recognition that indigenous and local populations have unique and valuable local knowledge, traditions and cultural practices that can contribute to effective management strategies in the face of rapid climatic change.

Very recently an Ethiopian young entrepreneur and a German environmentally-minded woman unexpectedly met in Ethiopia’s capital, Addis Ababa and came up with an idea of establishing an eco-village at the birth place of the former. The couple had the opportunity to introduce and promote their uniquely designed eco-village and -lodge at the 7th.Africa Hotel Show and Hospitality Show held at the Millennium Hall in Addis Ababa a month or so ago .ABN Editor-in-Chief Aklile Tsige speaks to the newlywed couple behind the realization of their childhood dream.

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Abyssinia Business Nework ነሃሴ 2011 / August 2019

The Tale of Two Dreams Abiy Alem, an Ethiopian visionary was born at a small rural village called Ta’eme kebele in West Gojam Zone of the Amhara Regional State.

After having studied only for a year at his birth place, he has moved to the nation’s capital, Addis Ababa with his brothers, joining Lazarist Catholic Mission School until he has completed 10th grade.

He then joined School of Tomorrow where he had completed his

secondary education. The hardworking Abiy has successfully passed his matriculation and got the opportunity to join Mekelle University, and received his BSc degree in Computer Science in 2011.

Valerie Seitz was born and grown up in Munich, Germany. After having completed her education, she has made attempts to realize her dream of visiting Africa by applying to an organization to do volunteering work. She then joined

a non-governmental organization working on environmental protection in Addis Ababa. But Valerie was not very happy working in this NGO due to various reasons.

Two dreamers, a German and an Ethiopian met few years ago in the Ethiopian capital, Addis Ababa when both Valerie and Abiy were living at the residential area called “Gotera Condominium”.

“I was living in Gotera condos with some other volunteers. Abiy also had

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a room there. So we met there and started talking and strengthening our relations; we’ve understood that we had a common dream of engaging in eco-tourism to support rural communities. So we’ve decided to establish an eco-lodge and -village.” says Valerie.

Abiy who earned his first degree from Mekelle University was not happy in his life though he tried to do various businesses with his friends. He simply kept on chasing his childhood dream.

He then joined a hotel and tourism school where he has got his diploma in tour and travel; he has also received the ´Foundation in Travel and Tourism from IATA correspondence diploma` from Canada so that he could gain more insight into eco lodges and ecotourism.

Equipped with relevant knowledge and skills, Abiy realized the fact that he was only on the threshold of the intended business. There had to be feasibility studies and community conversations for reliable implementation of the long-awaiting project.

Abiy explained, “I did more research on ecotourism which helped me develop a better understanding of the concept. So I had to do something, to start a project as I believe ecotourism has a good potential. Finally I have designed a small proposal.’’

Abiy was not doing things alone, his soul mate, Valerie was working with him tirelessly and energetically to achieve their common dream from the onset.

“We’ve spent nearly three years to get into the project, discussing, thinking and exchanging ideas. So we decided to go to the countryside 36

where Abiy was born. We have travelled several times to Ta’eme to undertake research in the area,’’ Valerie recalled.

Now the remaining task was to go through the monotonous, intolerable bureaucratic process of getting business license from regional and local authorities; this may be the last chapter to make a dream come true.

“For me it was really amazing because farmers in Germany are often conservative, not open for new things; it was completely opposite here.”

“Before contacting both regional and local authorities, I had to talk to my family about our plan; we were also in the community discussing the issue, gathering different information on support and cooperation we might get.” said Abiy, adding, “I went to Bahir Dar where the regional Culture and Tourism Bureau is situated, then to the Zone, West Gojam zone.

Fortunately, I’ve got the investment license very quickly within three hours.”

Nevertheless, the going got tough as moving to the lowest administration level. Here at the Woreda (local administration level) the dream team had encountered rigorous hurdles which took them nearly a year to leap over the bureaucracy.

Abyssinia Business Nework ነሃሴ 2011 / August 2019

Sol Image Interestingly enough, the local farmers played a pivotal role in the project implementation, working closely with Abiy and Valerie. They were pushing them to start the project as quickly as possible. This, in deed, attributes to the unforgettable and good deeds of Abiy’s father who has undertaken various socioeconomic development activities in the locality.

Apart from his father’s social contribution to the local community, Abiy was also doing some kind of social responsiveness.

“Whenever I went to the village with my clients or visitors, I used to take books to the local school

CONTEXT The realities of life on our planet dictate that continuous economic development, as we know it in the form of global capitalism, cannot be sustained. This is due to presentday forms of economic activity that have rapidly undermined two other processes which are essential for survival of human life and civilization: environment and community. The compromising of these two processes by current economic activities has destroyed both the vitality of human communities and the quality of human life [ICLEI 8 IDRC 1998].

libraries, and facilitate medical treatment access to the most disadvantaged members of the community.” Abiy noted.

Scientists around the world almost unanimously predict that, without serious policy and lifestyle changes, the world is about to face a great uncertainty and new risks threatening our ability to anticipate and plan for future adaptation needs [World Bank 2012].

Preventing this expected environmental, economic and social consequences, is undoubtedly the biggest challenge for human security the uniquely designed Mulu Eco in our century. Clearly, there is an urgent need for sustainable human Village has now become a reality. activities on our planet, which will require alternative forms of sustainable living and societal organization. Two Concept of Eco Villages movements operating on a global scale h are critically involved in FOR A SUSTAINABLE the ‘research and implementation ENVIRONMENTAL AND of sustainable alternatives: the Eco HUMAN DEVELOPMENT village Movement and the Global Eco village network.

“For me it was really amazing because farmers in Germany are often conservative, not open for new things; it was completely opposite here.”

Valerie appreciated the local farmers.

An Eco village is an intentional community with the goal of Taking credits for those deeds, becoming more socially, culturally, farmers and other community economically, and ecologically members became one of the sustainable. It is consciously most important pillars to kick designed through locally owned and off the project, to make a dream participatory processes to regenerate come true, and eventually lay the and restore its social and natural anchor. The foundation to erect environment.

Description The Eco village movement is growing worldwide. Governments, new communities and inhabitants of existing villages and suburbs are consciously choosing the path of sustainable development.

Abyssinia Business Nework ነሃሴ 2011 / August 2019

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change.

Eco villages and communities worldwide combine modern and traditional knowledge with sustainable innovative initiatives in agriculture, energy, resource management, democratic governance, conflict resolution, education and economy. They are making a decisive contribution within our society to the quest for local solutions to global problems.

The

Mulu

Eco

Village-

Ethiopia: An Inspiring Model

Photo by Mulu Eco Lodges Today thousands of Eco villages exist all over the globe and share their successful experiences. In the face of both ecological and economic crises, poverty and social crisis, people are coming together to assume joint responsibility for their region, its resources and their social surroundings. In this process they find themselves actors and creators of their own territory.

ecological business and employment opportunities, cultural activities, and enhanced attractiveness for families and travellers.

They are; therefore, an active contributor to positive demographic

Today Eco villages are models of lived sustainability; they inspire their region and pass on their experience. In a very practical form, they show how an ecologically and socially sustainable way of living tremendously increases our quality of life. Their examples make clear points: our ecological footprint can be significantly reduced and it is possible to revitalize regional economic and energy cycles.

This constitutes an important counterweight to globalization.

Eco villages enrich regions with 38

Abyssinia Business Nework �ሃሴ 2011 / August 2019

The Mulu Eco village is an outstanding example of an efficient implementation strategy of an interest-free Eco village in a rural area. The creation of an Eco lodge, in 2017, was made possible through a close partnership with farmers of the area. The Eco lodge holds the precious principles and knowledge of Eco village structural and permaculture aspects and is the key to restore an autonomous and sustainable lifestyle into a weakening community. It is a bridge with the outside world, a place to share and learn new ways of valorizing local lifestyle and it is the keystone of a fair and positive social, environmental and economic development of the area.

The Eco lodge is turned towards a community-based tourism and regularly hosts community events.

Eco villagers are actively taking part in the management of the eco lodge and its environment, learning to protect nature, to improve and diversify their agricultural activities, to develop handicraft, to share their knowledge and to positively connect to the world.

Travellers are integrated in the community and are not just passing

Sol Image by. They are here to encounter and connect with the culture in its whole dimension. Eco villagers benefits socially and economically from rich exchanges, and improve their quality of life.

Kicking off Located in the Amhara Regional State in Choke Mountains, the

Mulu Eco lodge takes an hour by plane from Addis Ababa to Bahir Dar, then 3 hours’ drive to a small town called Dembecha which is 205 km away from the region’s capital, Bahir Dar. Another option: about 7 hours’ drive on a beautiful road that stretches 360 km to Dembecha from Addis. From Dembecha town one has to travel 1 and half hour on dirt road and pebbles to the Lodge of the Mulu Eco Village. There you

go now to enjoy an environmentally friendly eco lodge: Mulu Eco Lodge.

Opened in 2018, the lodge was named in honor of Abiy’s mother, Mulu, which is to mean in Amharic language full, complete or integrated. Establishing a partnership with the villagers who are highly involved is the main pillar of the project. Abiy and Valerie are working for the efficient and reliable implementation and sustainability of this pioneer project in Ethiopia.

“The Mulu Eco Village is not only the ideal place to rest and walk while admiring the landscape, but also to meet local communities.

Indeed, very quickly, visitors will be part of the family” Abyssinia Business Nework ነሃሴ 2011 / August 2019

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What makes the construction of this lodge different is that all the construction inputs are organic, and have been exploited and produced from the local sources by the farmers. The greenery landscape coupled with the varieties of indigenous plant species surrounding the lodge is so breathtaking and marvelous.

Their goal is to enable villagers to improve their living conditions and they hope to build a school for the village children in the coming years. They already have the support of a small German NGO called Enat Ethiopia and built a grinding mill run by the farmers’ cooperative with the initial support of the German Embassy Addis Ababa.

The Mulu Eco Lodge is not only the ideal place to rest and walk while admiring the landscape, but also to meet local communities. Indeed, very quickly, visitors will be part of the family.

For example, the Gojo for cooking is open to the outside and allows visitors to participate in the preparation of meals of traditional cuisine based on Injera (large pancake made of Teff, a local cereal). The Gojo for the common dining room not only welcomes travelers but is also a meeting place for locals. Immersion with local communities is at its maximum.

The Mulu Eco Lodge is made up of several traditional round huts known as Gojo Bet, built of dried soil with a thatched roof, scattered over a huge field. The Gojo Betoch for travelers are very spacious and some are decorated in a very original way with multicolored pieces of recycled glass bottles, which gives them, from the inside a little magical light. Moreover everything is thought to protect and respect the environment: permaculture concepts, compost, and beehive for the production of honey, solar electricity, and dry toilets.

Trekking in the surrounding mountains, horseback riding, participation in local ceremonies, observation of flora and fauna (birds, monkeys), visits of the village houses, school, and participation in local daily Photo by Mulu Eco Lodges 40

Abyssinia Business Nework ነሃሴ 2011 / August 2019

activities like work on fields, cooking, and crafts are the most enjoyable activities carried out with the local community.

“For a lot of people it’s a unique experience. They can stay there in the country side with the highland farmers; real traditional Ethiopian life. I think it’s a very unique opportunity.”

Valerie explains.

This community-based tourism activity, Mulu Eco Lodge appears to be different; it facilitates ways to help farmers form their own associations and come with feasible project ideas that aim to solve their socioeconomic problems like food diversity, solar powered electricity, processing their harvest in grinding mills, education, and the like.

“

For a lot of people it’s a unique experience. They can stay there in the country side with the highland farmers; real traditional Ethiopian life. I think it’s a very unique opportunity.

”

Valerie explains.

Mulu Eco Lodge wants visitors to experience one of the most beautiful and undiscovered parts of Ethiopia: the Choke Mountains. Anyone who plans on travelling along the famous northern route can take a detour and visit the site located at over 3,000 meters altitude at the source of the Blue Nile! Mulu Eco Villages philosophy: Culture, nature and society form a natural unity. This cozy Eco lodge is a community center full of genuine activities where guests and locals get together.

Abyssinia Business Nework ነሃሴ 2011 / August 2019

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ታማኝነት A,f “ንጹሕ ሰዎች ብዙውን ጊዜ ተጎጂ የሚሆኑት ማንን ማመን እንዳለባቸው ባለማወቃቸው ነው!» ታማኝነት ማለት ምሎ የማይከዳ፤ አደራ የማያጠፋ፤ የያዘዉን በቀላሉ የማይለቅ፤ የማያወላዉል፤ ለምስክርነት የሚበቃ ማለት ነዉ፡ ፡ ታማኝ ሰዉ የሚያምነዉንና መልካም ነዉ የሚለዉን ይናገራል የሚናገረዉንም ይሠራል፡፡ ባሠማሩትም ሥራ ላይ በሚቻለዉ ሁሉ እንከን ሳያስገባ ጠብቆ ይገኛል፡ ፡ በኃላፊነት ቦታ ቢያስቀምጡት ያለምንም አድሎዎና ወገናዊነት ያስተዳድራል፡፡

መሀል ታማኝነት፤ በአበዳሪና ተበዳሪ፤ በወካይና ተወካይ፤ በማህበራዊው፤ በኢኮኖሚያዊውና በፖለቲካው ወዘተ ዘርፍ ታማኝነት ለአገር፤ በመሆኑም ታማኝነት ዐብይ ጉዳይ ነው። ፡ ዱሮ ዱሮ የእኛ ቅድመ አያቶች፤ እና አያቶች፤ በማህበራዊ ሕይወታቸው ውስጥ በሚፈጥሩት ግንኙነት፤ በርካታ ነገሮችን በመተማመንና በታማኝነት መንፈስ ቃላቸውን ሰጥተው፤ ቃል ተቀብለው፤ የሚያስሩት ውል በርካታ ነበር ይባላል፡፡ እንዲያውም ስለ ታማኝነትና ቃልን ስለመጠበቅ ያላቸው እሳቤ ክቡርና ትልቅ ነገር መሆኑን ሲያመለክቱ ከወለዱት ልጅ በላይ ነበር የሚያዩት እናም እንዲህ ይሉ ነበር ‹‹ የተናገሩት ከሚጠፋ የወለዱት ይጥፋ›› ይህም አባባል ከትውልድ ወደ ትውልድ ሲተላለፍ ቆይቶ እኛ ዘመን ላይ ደርሷል፡፡

“

አንዳንድ ሰዎች ግን ታማኝነትን እንደቀላል ነገር ስለሚመለከቱት እምበዛም ትኩረት አይሰጡትም፡፡ ስለዚህም በሥራቸዉ፤ በትዳራቸዉ፤ በአጠቃላይ ኑሯቸዉ ወዘተ… ታማኝ ለመሆን አይጥሩም፡፡ ነገር ግን ታማኝነት ከሰዉና ከእፈጣሪ ጋር የምንገናኝበትና ማንነታችን የሚለካበት ሚዛን ነዉ፡፡ ታማኘነት የሥነ ምግባር ጉዳይ ነው፡፡ ታማኝነት በሥራ ላይ፤ በሰዎች የእርስ በእርስ ግንኙነት ላይ የሚጠበቅ ትልቅ ፋይዳ ያለው እሳቤ ነው፡፡ ታማኝነት በመጀመሪያ ለራስ ሕሊና ሲሆን ተያይዞም ለበርካታ ሌሎች ጉዳዮች እጅግ አስፈላጊ ይሆናል፡፡

የታማኝነት መገለጫው ብዙ ነው። በሥራ ላይ ታማኝነት፤ በወዳጅነት መሀል ታማኝነት፤ በባልና ሚስት 42

ቃል እና ታማኝነትን የአንድ ሳንቲም ሁለት ገፅታ አድርገው በመውሰድ በቃል የተዋዋሉትን ውል በታማኝነት በመተግበር ይጠብቁት ነበር፡፡ ለምሳሌ በቃል ጥያቄ እና ‹‹ ልሙትልህ፤ ልሙትልሽ ›› በሚል የመሀላ ማስተማመኛ የተበደሩትን ገንዘብ ይሁን፤ ሊያደርጉት ቃል የገቡበትን ነገር በታማኝነት ቃላቸውን ጠብቀው ያደርጉት እንደነበር አሁን የዕድሜ ባለፀጋ ሆነው ዛሬም ያሉ አባቶችና እናቶች ይናገራሉ፡፡

Abyssinia Business Nework ነሃሴ 2011 / August 2019

እውነት ነው የቀድሞ ዘመን አባቶቻችንና እናቶቻችን በታማኝነት እና በሥነ ምግባር ጉዳይ የላቀ ደረጃ ነበራቸው ማለት እንችላለን፡፡ በሁሉም የሕይወት ዘርፍ በአብዛኛው ማለት በሚቻል ደረጃ ታማኞች ነበሩ፡፡ ለአገራቸው፤ ለመንግሥታቸው፤ ወዘተ ታማኝ በመሆን ከእነርሱ የሚፈለገውን ማንኛውንም ነገር በታማኝነት ያከናውኑና መስዋዕትነት ከፍለውም እንኳን ቢሆን ይተገብሩት ነበር ፡፡ በግለሰባዊ ሕይወታቸውና ኑሮአቸው፤ በታማኝነት ሰንሰለት ከሌላው ጋር ተያይዘውና ተቆራኝተው ኑሮን ሲመሩ ድንገት አንዱ የማህበረሰቡ አባል ታማኝነት እሳቤ ላይ የላላ አቋም ኖሮት ወይም ኖሯት ታማኝነት ቢጎድል ከፍተኛ የሆነ ወቀሳ እና የማግለል እርምጃም እስከመውሰድ ይደርሱ ነበር፡፡ ይህ የታማኝነት ጉዳይ ትልቅ አገራዊ እና ማህበራዊ እሴት ነው፡፡ : ታማኝነት ባለ አደራነትን ያሳስባል፡፡ ታማኝ ነው የተባለ ሰው የሚሰጠው ኃላፊነት በርካታ ሆኖ በደረጃም ላቅ ያለ ሥፍራ ሊኖረው ይችላል፡፡ አገርን የሚመሩ ወይም የሚያስተዳድሩ እና በተለያዩ ሥራዎች ላይ ያሉ ሠራተኞችም ሰዎች ታማኝና አደራንም የሚጠብቁ መሆናቸው በእጅጉ አስፈላጊ ነው፡፡ በእርግጥ ታማኝነት በብዙና በተለያዩ ሁኔታዎች ሊገለጥ ይችላል፡፡ ዋናው እና አብይ ጉዳይ ግን ‹‹ቃል አክባሪነትና ሌሎች በራሳቸው ሚዛን መዝነው አውጥተውና አውርደው በሰጡት ኃላፊነት ፤ ባስቀመጡት ቦታ ታማኝ ሆኖ መገኘት ነው፡፡ የታማኝነት ጉዳይ ‹‹የቄሳርን ለቄሳር የእግዚአብሔርንም ለእግዚአ ብሔር›› ማለት እንጂ፤ በሰበብ አስባብ ታማኝነትን ለማጉደል ዳር ዳር ማለት አይደለም፡ ፡ ታማኝነት ለአገር፤ ለመንግሥትና ለግለሰብ፤ ታማኝነት ለትዳር፤ ወካይ ለተወካይ ወዘተ አስፈላጊ ነው። ድርጊቱ በታማኝነት ፅንሰ ሀሳብና በመልካም ሥነ ምግባር ላይ የተነቀነቀ ነገርና የተወረወረ ጦር ፤በታማኝነት ላይ ተጎንጉኖ የተሰራ ጠልፎ የሚጥል ገመድ ሆነ ማለት ነው፡፡

መታመን ትልቅ ዕድል ነው፤ በየትኛውም ሁኔታ እና አጋጣሚ ውስጥ ታምነን ኃላፊነትና አደራ ሲሰጠን ታማኝነታችንን ለማረጋገጥ መሥራት ነው። በመሆኑም አንድ ሰው በኑሮዉ ሁሉ በሚከተሉት ነገሮች ታማኝነቱን ሊገልጥ ይገባዋል፡፡ .«ለራስ ታማኝ መሆን!» ለራሳቸዉ ታማኝ ያልሆኑ ሰዎች በተናገሩት አይጸኑም፡፡ እንደ ዉኃ ላይ ኩበት ሁል ጊዜ ወዲያና ወዲህ እንደዋለሉ ይኖራሉ፡፡ ለጊዜዉ የሚያገኗቸዉን ጥቅሞች በማሰብና በአካባቢያቸዉም ተፅዕኖ ምክንያት በዉሳኔአቸዉ አይረጉም፡፡ ስለዚህ ‹‹አደርጋለሁ›› ብለዉ የሚወስኑትና የሚያደርጉት አይገናኝም፡፡ ደሚያስፈልጋ ቸዉንና የማያስፈልጋቸዉን ለመለየት ይቸግራሉ፡፡ ሌሎችንም ለማመን ስለሚከብዳቸዉ ሕይወታቸዉ በጥርጥር የተመላ ይሆናል፡፡

‹‹ ልሙትልህ፤ ልሙትልሽ ›› ስለዚህ አንድ ሰው ለሌሎች ከመታመኑ በፊት በቅድሚያ ለራሱ ሊታመን ይገባዋል፡፡ ሁል ጊዜም የሌሎችን ይሉኝታ እያሰበ ብቻ ሳይሆን እዉነትን ይዞ መጓዝ ይኖርበታል፡፡ እንደዚያ ከሆነ በተናገረዉ ይጸናል፤ አይዋሽም፤ ለጊዚያዊ ጥቅም ራሱን አሳልፎ አይሰጥም፡፡ «ለፈጣሪ ታማኝ በመሆን!» ንጹሕ ሰዎች ብዙውን ጊዜ ተጎጂ የሚሆኑት ማንን ማመን እንዳለባቸው ባለማወቃቸው ነው። ፈጣሪ ለሰው ልጆች የገባዉን ቃል ኪዳን የሚያከብርና የሚፈጽም በቃሉ የታመነ ነዉ፡፡ እንደዚሁም የእርሱ የሆኑ ሁሉ ታማኝ እንዲሆን ይፈልጋል፡፡

በመሆኑም እኛም በፍጹም ፍቅር ለእርሱ ልንታመን ይገባናል፡፡ ልባችንና አጠቃላይ ሰዉነታችንን ለፈጣሪ ፍቅር አሳልፈን ከሰጠን ከሁሉም በላይ ለእርሱ ያለንን ፍቅር ስለምናስቀድም ለመታመን አንቸገርም፡፡ ቀቃሉን ለማክበርና ትዕዛዙን ለመፈጸም እስከመጨረሻዉም በቤቱ ለመጽናት እንችላለን፡፡ በዘመናችን ግን ብዙ ሰዎች የሚገዙት መግባት መ ዉ ጣ ታ ቸ ዉ ን ለሚቆጣጠረዉና ለአፍታ እንኳን ለማይለያቸዉ ለፈጣሪ ሳይሆን ለሰዎች ነዉ፡፡ ስለዚህም ብዙ ወንጀሎችና ኃጥያቶች የሚፈጸሙት ሰዎች አያዩኝም ተብሎ በሚታሰብባቸዉ በጨለማ ጊዜያት ነዉ፡፡ ፈሪሃ አምላክ ሳይኖራቸዉና ፍቅሩ ሳያስገድዳቸዉ በአካባቢአቸዉ ያሉትን ሰዎች ብቻ በመፍራት የሚኖሩ ሰዎች ብዙዉን ጊዜ ተደብቀዉ ይበድላሉ፤ ይዋሻሉ፤ ጉቦ ይሰጣሉ፤ ይቀበላሉ፤ አደራ ያጎድላሉ ወዘተ…….። ስለዚህ የሰው ልጅ የሚሰራዉን ሁሉ ለአምላክ ፍቅር ብሎ ፈሪሃ አምላክ ኖሮት ከሠራ በተሰማራበት ሁሉ ታማኝነት የአምላክ ፍቅር መለኪያና ለታላቅ ክብሮትም የሚያበቃ ነዉ፡፡

” «ለሌሎች በመሆን!»

ሰዎች

ታማኝ

የሰው ልጅ በመቅረዝ ላይ ያለ

መብራት ነዉና ለራሱ ብቻ አይኖርም፡ ፡ ብርሃኑን ለሌሎች ያበራል፡፡ ስለዚህ በዕለት ለዕለት ኑሮዉ ከሰዎች ጋር ስለሚገናኝ በተሰማራበት ሁሉ ታማኝ ሊሆን ያስፈልጋል፡፡ በተለይም እዉነተኛ ፍቅር በልቡ ያለዉና ሌሎችን እንደራሱ አድርጎ ለሚወድ ሰዉ ታማኝነት ምግባሩ ነዉ፡፡ አደራ ቢቀበል አይክድም፤ የራሱን ጥቅም አስቀድሞ አይዋሽም፤ በሀሰት አይመሰክርም፤ የገባዉን ቃል ኪዳን አያፈርስም፡፡ ለሌሎች ታማኝ መሆን የሚጀምረዉ ከአነስተኛና እኛ ቀላል አድርገን ከምንገምተው ነገር በመነሳት ነዉ፡ ፡ የተሰጠችን አነስተኛ አደራ በመጠበቅ ታማኝነታችንን በተግባር ልናሳይ የይገባል። ሌላዉ የዘመናችን ችግር የብዙ ሰዎች በትዳራቸዉ ታምኖ አለመገኝት ነዉ፡፡ ትዳር ያልመሰረቱ ወጣቶች እንኳን (ምን ትዳር አትመሰርትም? አትመሰርችም?) ተብለዉ ሲጠየቁ ‹‹የሚታመን ሰዉ አለ ብላችሁ ነዉ?››ይሆናል መልሳቸዉ፡ ፡ በትዳር ላይ ያለዉ ዉስልትና አለመተማመን ጋብቻን ያህል በብዙዎች ዘንድ የሚያስመርር አድርጎታል፡፡ ሌላዉ ችግር ደግሞ በተሰማሩበት ወይም በተሾሙበት የስራ መስክ ታማኝ ሆኖ አለመገኝት ነዉ፡፡ ምዝበራ፤ ጉቦኝነትና አድልዎ በየጊዜዉ የሚሰሙና ብዙ ሰዎች የሚዎድቁበት ጉዳይ ነዉ፡፡ እንግዲህ አንድ ሰው ታማኝ መሆን አለበት ሲባል እነዚህን ነገሮች ሁሉ ሊገነዘብ ይገባል፡፡ በቅድሚያ ለራሱ ከመታመንና ፈሪሃ አምላክ ካለዉ ለሌሎች ለመታን አይቸግርም፡፡.....አበቃሁ፡፡️

አምላክ፦

ለሁሉም ታማኝ በመሆን እናልፍ ዘንድ ቅዱስ ፈቃድ ይሁንልን፡፡ አሜን ክፋትን ከልባችን ያርቅልን!(አሜን) ማስተዋሉን ለሁላችንም አብዝቶ ያድለን! (አሜን)

Abyssinia Business Nework ነሃሴ 2011 / August 2019

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ABN

10

Questions

?

BY AKLILE TSIGE

Our company pursues all design styles like contemporary, traditional, eclectic, and romantic.

Interior design is the art and science of enhancing the interior of a building to achieve a healthier and more aesthetically pleasing environment for the people using the space. An interior designer is someone who plans, researches, coordinates, and manages such projects. Interior design is a multifaceted profession that includes conceptual development, space planning, site inspections, programming, and research, communicating with the stakeholders of a project, construction management, and execution of the design, according to Wikipedia. More appealing to women, this field of profession has remained uncommon in Ethiopia, but few industrious women are coming to the forefront.

Born and grew up in the Ethiopian capital, Addis Ababa, Samrawit shiferaw has been in love with aesthetics and design since childhood. Samrawit has completed her higher education in Architecture at Addis College, and has further taken a six –month training in designing and earned a certificate from England. Sheis currently unleashingher entrepreneurial potential in interior design by establishing Zion Interior Design and Finishing Works in partnership with Chernet Teka who used to do only finishing works before he joined Samrawit. The 3-year old company now seems to be stretching its wings across other countries. ABN Editor-in-Chief, Aklile Tsige presents 10 questions to company General Manager, Samrawit while having coffee at Lubanja Café and Restaurant located nearby the Millennium Hall.

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Abyssinia Business Nework ነሃሴ 2011 / August 2019

ABN: How could you start running Zion Interior Design and Finishing Works?

Samrawit: As soon as I finished my higher education in Architecture I decided to start a business in the field. I and Chernet who had been engaged in finishing works merged to form Zion Interior Design and Finishing works.Currently the company has got nearly 70 employees engaged in gypsum, painting, carpeting and other works.

ABN:Have you ever taken any training on interior design after completing your college study?

Samrawit: Yes, I’ve taken a 6-month-training on interior design from an England University. The courses included color psychology, general interior design works, and unique global products. By the way, the course also included exterior design, and provided insight into the various design styles.

ABN: What about the use of technology in interior design?

Have you updated yourself with the existing technology?

Samrawit: We’re using over five

international softwares for interior design works.For example, 3D Max, Blender, Fusion and the like are the ones we are currently using in our company.

Color plays a very significant role in both interior and exterior design;

ABN: What is the significance of color in interior design?

Samrawit: Color plays a very significant role in both interior and exterior design; there are over a thousand types of color, and each color has its own interpretation and influence on people’s psychology.

For instance, if you look at Ethiopian flag, which is horizontally green, yellow and red, each color has its own meaning. So, when we apply color for a school and a hospital, we have to consider their purpose and their function; for a kindergarten we need to use color that encourages and provides hope to children like yellow and orange. For a hospital we need to use color that helps heal patients such as light blue and white.

ABN: How would you describe your design style?

Samrawit: Our company pursues all design styles like contemporary, traditional, eclectic, and romantic.

We usually focus on clients’ need; For instance, if we have got a Somali

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client, by default they like green color, so we need to use green on the project they give us. If someone orders us to apply a classical style, we have to do so.

ABN: What is the difference between an interior decorator and an interior designer?

Samrawit: An interior decorator is simply working traditionally while an interior designer is working with relevant knowledge and skills. In one word…..the difference is education.

ABN: How about the marketing strategy you’re employing?

Samrawit: I think we’ve developed a sound marketing strategy that makes us competitive in the sector; we have salespersons; we participate in bids; we’ve also developed updated company profile that would capture clients’ attention. Therefore, I could

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say that we’re working with effective marketing strategy.

I think we’ve developed a sound marketing strategy that makes us competitive in the sector;

Abyssinia Business Nework ነሃሴ 2011 / August 2019

”

ABN: What kinds of clients do you like to work with?

Samrawit: We have all types of clients ranging from governmental to nongovernmental, and to private institutions; we have been doing both interior design and finishing works for condominiums, hotels and hospitals. Our greatest projects include the reception unit at the headquarters of Oromia International Bank next to Getu Commercial Center, and over 15 branches of Awash Bank, Edomias International at Mexico Square.

ABN: What do you think are your notable success in the company’s three-year-journey?

Samrawit: Actually I cannot say we’ve achieved a lot in

the past three years. But we’re trying to discharge our social responsibility as much as possible. We provide financial assistance to a local NGO called Muday Charity Association which is working on rehabilitation of women and children. Currently they are provided with land for the construction of a rehabilitation center. So we plan to support them professionally.

ABN:What are your company’s short-term and long-term plans?

Samrawit: Nowadays, we are undertaking feasibility studies in some African countries like Zambia and South Africa, and plan to reach all African nations in our short-term plan; in the long-run we envision to be a leading and outstanding interior design and finishing works company at the international level.

( Samrawit can be contacted via +251 911 843928 +251 983 888376 E-mail:Zioninterior94@ gmail.com) Abyssinia Business Nework ነሃሴ 2011 / August 2019

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Abyssinia Business Nework ነሃሴ 2011 / August 2019

Abyssinia Business Nework ነሃሴ 2011 / August 2019