Abyssinia Busniess Network November 2019

LAND OF ORIGINS

Hosting Hospitality

Seleshi Girma Feteh Weldesenbt Kumneger Teketel Benyam Bisrat Yakob Melaku

Chief Executive Officer President of Ethiopian Hotel Managing Director and Lead President of Addis Ababa President of Ethiopian Tour
/CEO/ and Related Service Employers Consultant of OZZIE International Hotels Owners Association Operators Association
/ETOA/
Tourism Ethiopia /EHRSE/ Hotel Project Consultancy /AHA/

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Editorial Team

MANAGING DIRECTOR

Daniel Tiruneh Renewing
MANAGING EDITOR
History
Getachew Alemu
EDITOR IN CHIEF FDRE Premier
Dr. Abiy Ahmed
Aklile Tsige
CONSULTANCY The hospitality and tourism industry in Ethiopia has
reportedly been growing in a crawling rate; but many argue
Zeima Ahmed that an alarming rise should have been witnessed in the sector
STAFF WRITERS if key stakeholders and government’s commitment had been
as the nation’s desire.
Mekonnen Hailu
So far the country’s effort in tourism and related development
Ketema Kebede remains nonmoving and willy-nilly. Expected job
opportunities from the sector also remain a dream of distance
Chacha future and the nation couldn’t reap as much fruit as it needs
Hiwot Salelew to have.

Teshome Fantahun However we have to recognize and acknowledge the
attempts being undertaken by the incumbent government
REPORTER to create and develop tourist attractions across the country.
Josephine Wawira One recent development is the construction, restoration and
Kamba Anthony inauguration of the Unity Park that took only six months for
completion.
Joseph Oduha
Designer The Unity Park as its name implies stands as a symbol for
unity among the various nations nationalities and peoples of
Daniel Tiruheh Ethiopia, as a symbol for rich historical, natural and cultural
Photo heritages of the nation, as a symbol for source of inspiration
to undertake any project in the country.
Sol Image
Web Admin Once a torture and butchery site, the 20 hectares of the palace
compound has now got new face for all ages of visitors; this
Rahel Tesfaye untouched and confined spot was for long period of time a
Distribution site people never give a look at, and a site where no one was
allowed to take pictures around.
Hailu Abesse Despite the various socio-economic and political crises
Partners across the country, we have to appreciate this initiative taken
Ethiopia Culture And Tourism by the FDRE Premier Dr. Abiy Ahmed who has significantly
Addis ababa police Commission contributed to the realization of the five billion birr project,
boosting the number of tourist destinations in the capital
Ethio Great Investment Support Service PLC Addis Ababa in particular and Ethiopia in general.

Abyssinia Business Network is published by Most importantly, it appears an initiative that provides a one-
stop tourist service, showcasing the various natural, cultural,
EYUDAN MEDIA PLC historical and political landscapes of Ethiopians over the past
130 plus years. Renewing our past and shaping our future is
business license no .KK/AA/14/706/661438/2009 like killing two birds with a stone; it adds beauty to the site
and generates income to the nation. May the Lord open our
Address eyes to unveil lots of our hidden treasures!

Kirkos Subcity ,Wereda 02 , House No 545/B WE WANT YOU! to write for us.

Meskel Flower

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CONTENTS 44

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Abyssinia Business Nework ህዳር 2012 / November 2019 05

Hosting Hospitality

By Aklile Tsige
The tourism and hospitality operation is a lucrative but volatile business. Concerns about its sustainability
require utmost knowledge and skills. Practicable philosophies about people, economics, finance,
management, culture, and political ideology are essential.
Tireless training of the staff, adequate budgeting and investment on technology, comprehensive technology
installation and synchronization (interlinking), in premises operationalization of all tech-installations
(technology should not be outsourced), stiff fraudulent monitoring and advanced remedy, team-working,
branding within a license and positive discourse market competitions are very crucial to run a safe,
secured and prosperous hospitality business
Many argue that Ethiopia, despite its immense tourist attractions, has not yet benefited from this gift of
God; little attention to structured and organized operation hinders the development of the hospitality
and tourism business across the country. Nevertheless, there appears to be promising endeavor being
undertaken by different governmental and private organizations working on the development of the sector
in Ethiopia.Our Editor-in-Chief AklileTsigespeaks to heads of organizations that are playing key roles in
the industry.

06 Abyssinia Business Nework ህዳር 2012 / November 2019

Ethi pia
LAND OF ORIGINS
Abyssinia Business Nework ህዳር 2012 / November 2019

Tourism Ethiopia

in Action

Tourism Ethiopia Chief Executive Officer, Seleshi Girma has earned Seleshi Girma
MBA in Int’l Business, MSc in Wildlife Conservation, and PGD in
Tourism Management, and has got 14 years of experience in academics
teaching, industry advising and government Leadership; he has
alsoworked as tourism development advisor for the Ministry of Culture
and Tourism, for Addis Ababa City Tourism Bureau Deputy Head ,
lecturer at the University of Gondar, and consultant for international
organizations working on tourism development.

How could you describe the existing “We strongly Chief Executive Officer
condition of tourism in Ethiopia? /CEO/
believe that
Ethiopia has many diverse natural tourism is equally Tourism Ethiopia
and cultural tourist attractions. Unlike growing in rural
other nations in the continent, the areas as it is in the How far governments support the
country has competitive tourism nation’s tourism sector?
resources having high potential to
attract tourists. Most importantly it is Government is willing to support the
the leading nation sheltering about 12 sector by;
UNESCO recognized world heritage i. Opening up of tourism
sites. Consequently, there has been a
growing trend in the sector. studies in universities,
ii. Provides incentives to import
What are the main activities your cities. Agriculture duty free items such as vehicles for
organization is undertaking right tour operators, construction materials
now? is an input for for hotels and even restaurants.
iii. Enhance the private sector
Basically, 4 major things to do as per tourism, and capacity to promote its business
the mandate given to the organization- tourists love to through sharing costs with the
government, such as with my office.
i. Facilitating the tourist experience the life iv. Though very weak, tried to ensure
destination development, the conservation of heritages.
”in these areas. v. It tries to play a role in securing
ii. Capacity building of the sector tourist destinations for visitors.
iii. Promote and market the
Is tourism in Ethiopia different
tourism resources and build from other countries worldwide?
the Image of the country.
iv. Conduct researches on any Eventually Yes,
issues of destination i. The tourism in Ethiopia is highly
development & focused on inbound tourism
tourism promotions.. business. Aimed to receive foreign
tourists and has ignored the business
of sending out potential tourists from
home to the outside world or at least

08 Abyssinia Business Nework ህዳር 2012 / November 2019

to enhance the domestic tourism for citizens ii. Conference tourism more environment conservation
to move around our beautiful country. iii. Adventure tourism sensitive, we focus on
ii. Most tourism businesses are owned Ecotourism.
by locals and it is worth to get more What are the creative iii. Knowing have good
experiences to do tourism businesses and strategies you have adopted? recognition for Athletics & long
reduce economic leakage/money going distance running, we focus on
outs/. We study trends and designed Sport tourism such as mountain
iii. Tourism is a new venture, much younger a strategy to focus on; bicycling, the moves of private
than agriculture & industry. So, requires sector by Haile Gebreselassie in
more support & follow-up to be competitive. i. To exploit the opportunity running the Great Run are also a
from being headquarter of real creative works.
Do you take up activities and projects OAU, we focus on MICE. iv. Being a hub for 12 million
under bilateral agreements with other ii. Knowing tourists are passengers moving via Addis
stakeholders?

We do;
We have ongoing projects with the

World Bank and MasterCard foundation.
This is more of designing national strategies
to develop tourism.

In the future, we are more interested
in the private sector. Recently, we are
mandated to raise funds, collect levy and
intervene in public private partnership/PPP/
projects.

What are the major themes you pursue
after signing partnerships with other
players?

We look for a common agenda
and set a shared vision. It is following
recommendations from past studies
conducted by our organization or based on
the tourism development policy objectives.

Once we set a clear agenda, we make
sure we have the right team comprised of
different academic & experiences, key
stakeholders…

We ensure the possibility of monitoring
and evaluating the role of each party is as
per the MoU or any form of agreement
terms.

What are the main types of tourism in
Ethiopia?

There are many forms; I believe the major Photo Sol Image
once are;

i. Leisure tourism

Abyssinia Business Nework ህዳር 2012 / November 2019 09

Photo Sol Image Ababa, we focus on Stop-over Tourism
to let transits to spend few days in our
10 Abyssinia Business Nework ህዳር 2012 / November 2019 tourist destinations.
v. We are also developing a regional
tour package as one East Africa region
to be more visible in the global market
competition.

How far tourism impacts Ethiopian
cities and regions?

Mainly it has an economic impact.
Understanding the economic values,
cities and regions are involved in
the conservation of their heritages,
promotion of the natural and cultural
resources, also it is a foundation for the
launching and expansion of tourism
and hospitality business.

Does tourism activity boost national
economy benefiting citizens? How?

It benefits through its multiplier effect;

Creating employment opportunity.
To establish and run
tourism business ventures.
Helps citizens to feel proud of its
culture and natural landscape being
conserved, promoted and visited by
tourists.
Moreover, it brings Tax for the
government and plays role in trade-
balance.

What are the tourism plans that
accompany expansion of economic
projects of huge economic scale?

To focus on MICE to bring
and organize more conferences &
exhibitions.

To further enhance cultural tourism
promotion to mainly scale up the
competitive advantage of our country
compared to the neighboring nations
and maximize the benefits from the
UNESCO recognized heritages.

What are the main areas of

cooperation with economic “ travelers /meet the demands of
sector to enable tourism projects educational tours & foreign back-
in their activities? Domestic packers/.
tourism
From now on, we are keen to iv. I personally also believe that
strongly work on PPP modality. is yet opening of tourism and hospitality
This will happen in any of our untapped academy is also essential.
future destination development
and tourism promotion works. ” What are the most encouraging
potentials for business capital to
How could tourism in the invest in tourism?
continent benefit citizen in
general and youth in particular The continuous growth of the
in operation and management of sector, the incentive packages
tourism activity? for the industry operators and the
willingness of the government
Actually, tourism is labor to support the sector (if changed
intensive and urges more creative in to commitments) are the key
employees. Hence, our youth can promising facts that give courage.
create new tourism businesses and
contribute much to fill the gap of Are there any administrative
obtaining skilled manpower in the regulations to arrange and control
sector. work performance in Travel and
Tourism Agencies?
What is the rate of tourism
revenues in Ethiopia? The major mechanisms are:

According to the data obtained i. Licensing tourism businesses
from the Ministry of Culture and ii. Standardization and labeling
Tourism, it brings more than one of services. E.g. hotels using stars.
billion dollar annually. iii. Regular supervision

What are the most significant and monitoring of each business.
areas of investment in domestic
tourism? What about promoting and
developing eco-tourism or rural
Indeed, domestic tourism is yet (agricultural) tourism?
untapped. Howsoever, I suggest
the following areas of investment: We strongly believe that tourism
is equally growing in rural areas
i. Opening up of specialist tour as it is in the cities. Agriculture is
operators (Niche operators) an input for tourism, and tourists
focuses on designing and selling love to experience the life in these
tour packages targeting local areas. Most importantly, we focus
people. on ecotourism, which happens to
ii. Specialized restaurants offering be developed in nature areas, be it
foreign cuisine that meets a mountain or desert. Thereby, we
demands of visitors of different get chance to encourage eco-lodges,
nationalities/. eco-camping ventures and any eco-
iii. Establish youth hostels to friendly businesses in general.
offer reasonable prices for student

Abyssinia Business Nework ህዳር 2012 / November 2019 11

Hawassa

to Host Hotel Conference

Feteh Weldesenbt is President of Ethiopian Hotel and Related Service

Employers’ Federation and the PHD candidate in Hotel Marketing ata

university abroad. He also serves as General Manager of Central Hawassa

Hotel and working in the hotel and tourism sector for a longtime. He is one

of the founders of the National Hotels Owners’ Federation, representing the

hotel and related service owners at national level for the first time.He speaks Feteh Weldesenbt

on various issues with ABN. “No doubt it President of Ethiopian Hotel
and Related Service Employers
How was your organization needs more
established? and more /EHRSE/
improvement
We had a structural and a representation on these issues. behalf of hotel and related service
motive to establish the federation. You We heard the owners.
may be aware that just two or three years surplus of
ago there was only which association the educated How do you describe the hotel
which represents the specific place and industry in Ethiopia?
there was no any national representation
for the hotel and tourism sector. Hotel sector in Ethiopia is an
untouched sector and dramatically
According to proclamation 377/96 and growing sector when compared to
the International Labor Convention 87, others. When you see the influence
more than ten single employers can of the sector and the attention
establish an association; more than two given to it by the government and
associations can establish a federation the stakeholders, there are more
and more than two federations can and more works to be done in
establish a confederation. In the context the sector. Ethiopia possesses all
of Ethiopia the employees established rounded tourist destinations like
their federation for long term and they religious (Christian and Muslim),
have worked to protect their members’ cultural and natural attractions.
interest strongly. The sector has created hug amount
of job opportunity for women and
youths, it becomes the good source

Next to tell you this background, as and trained of foreign currency for the national
more associations are established most economy.

associations are representing their employees in How do hotel investment and
members in the stages of the negotiations tourism go together?

of their interests with the government It’s no doubt that hotel and tourism
go together. Tourism is described
the country.and the employee delegates. To this asthe movement of people from
one part of the world to another;
end the sector needs its own national it can be locally or internationally.
representation and the 11 regional and It means you leave your residence
city hotel owners associations have met
and established this national federation
two years ago and now we all have a
national representation and workon

”12 Abyssinia Business Nework ህዳር 2012 / November 2019

Photo file /EHRSE/ I don’t agree with this. As you Do you believe that government’s
know most of thehotels which policies and strategies are conducive
for some unspecific or specific days. are appropriate to tourists are for hotel and tourism sector?
So when you move out from your found in Addis Ababa. When I can say yes with some limitations.
place you need the basic human needs it comes to hotels around the As you may be aware of the fact
like shelters, food and recreational tourist destinations, it can be that the government considers this
activities which you missed at home said that there are insufficient sector as a priority sector through the
and expected by your movement. hotels. And also the number provision ofincentives like duty free
So to fulfill this need the only place of expected tourists is not as privilege, tax holiday, land for hotel
you need to have is hotel and related it’s required; this may be due projects, promoting the country
service providers. So if you want to to different factors like the tourist destinations by high level of
move you need hotels. The other thing advertisement strategy being the leaders and the like. As a country
is people move from place to place to implemented, we need to bid we are still not capable of providing
attend meeting and conferences; at this and bring different MICE proper and quality hotel finishing
point the tourism destinations need to events which have high number materials and equipment.So this
have facilities like hotels. Both hotel of participants. Even we should should be taken into consideration
and tourism are inseparable. work to unleash the potential of for hotel projects; we believe that
the number of population we some people abuse the privileges
Many argue that the hotel industry is have by promoting the local given by the government. We stand
saturated as the number of tourists tourism. with government to avoid these
visiting the country is on the decline. issues.
What’s your impression on this?

Abyssinia Business Nework ህዳር 2012 / November 2019 13

What are the challenges the sector faces
this time around?

There are so many challenges. The first
one is the government and the leaders do
not well understand the sector. The hotel
and tourism sector has great potential in
creatingjob opportunities, and generating
high foreign currency source. The others
challenge is lack of getting foreign currency
for purchasing finishing materials as well
as the deteriorating peace and security in
some part of the country. Moreover, at
sectorial level we are not working together
as a private sector. Our federation has been
creating platform to bring about change in
the sector.

What about the prospects ahead?

We are working to solve those challenges
and to use the opportunities. As you know
we have organized the 1st National Hotel and
Tourism Conference in collaboration with
the Ministry of Culture and Tourism. This
conference aimed to discuss the position of
this sector by comparing with other countries
and expected stage with the government
and the partners. The conference was so
successful. We raised different questions
and recommendations to the government
by considering the sectorial challenges and
the government was represented by the
deputy Prime Minister, Ministers, Regional
Presidents and City Mayors.
Tell us briefly about the upcoming the
Hotel and Tourism conference to be held
in Hawassa?

Photo file /EHRSE/ The pushing factor and plan to organize
the hotel and tourism conference is the
declining of the hotel and tourism activities
in Ethiopia, which is mainly due to different
unrest and lack of peace following the
reform in the country. As well known lack of
peace firstly affected the hotel and tourism
sector. It aims to motivate and to witness
that the cities are peaceful and comfortable
for tourists by rotating the conference to
Hawassa,Bahir Dar, Mekele and Oromia

14 Abyssinia Business Nework ህዳር 2012 / November 2019

following the Addis Ababa “ One of the better to wait and release the exact
conference. On November 1-3, one in the near future.
2019, all star hotel owners, tour challenges
operator’s owners, consultants, of the hotel How do you describe the relations
hotel operators, high level you have with concerned
government officials and the government organs?
like will be in Hawassa to attend
the conference and undertake sector is lack Frankly speaking, there was no
different social activities. On of establishing proper and good relation with
this conference questions are the government until the national
expected to before warded to reliable and federation was established. All go
the government and responses well-designed here and there alone and the voice
will be given to participant; of the sector was not strong. After
there will also be presentations records. ” the federation was established
on different issues; there will be the sector has begun to be well
open discussion with high level used by hotels and tourism sector represented at the national level and
government officials. It will be players? work closely with the government
the most memorable experience and with partners. One of the
for the sector owners and No doubt it needs more and more witnesses for this is, organizing the
partners. For this, the regional improvement on these issues. We 1st Hotel and Tourism Conference
government and the city heard the surplus of the educated with the ministry. And also the hotel
administration are working and trained employees in the rating was conducted with us and we
closely for the success of this country. But when you come to represent the owners in star-rating
conference. the reality there is a shortage of committees; we were involved in
employees in the sector. When every activities of the government
What’s expected from the you see trained employees, they which were focusing on hotel and
conference? have no exposure for what they do. tourism sector. In sum, we have
The training focuses on theoretical established good communication
Many good things are expected aspects; there are no practical with the governments.
from the Hawassa conference. trainings because of shortage of
Firstly, it activates the city infrastructures. In this regard hotel Anything you want to add?
hotel tourism activity that has owners should cooperate with
been stagnant due to instability, training institutions in providing We would like to invite all owners
and to show how peace and practical trainingopportunities. in the sector to be a member of the
stability is restored in the city federation and to strongly project our
so that the city is ready for Can you supply data on current voice. If we stand together we can
tourist and MICE activities. number of hotels, rooms and beds make a change to sector. We should
In the meantime hotel owners in Ethiopia as a whole? be together for the development of
from all corners of the country the sector. Taking this opportunity, I
will motivate hotel owners One of the challenges of the hotel would like to thank the Ministry of
in Hawassa and share their sector is lack of establishing Culture and Tourism especially to
experiences. It will create the reliable and well-designed records. the Minister H.E Dr. Hirut Kassaw
socialization within the owners. Our federation is planning to get and all staff for their unreserved
We are following the official detail information of 1-5 star hotels support to stand with us for the
response from the specific in the country in 2012 E.C. and it sectorial development. I also would
Ministries. will continue in other. So instead like to thank the committee of the
of giving unconfirmed data it’s conference. And also we thank you
What is your general for you giving a chance to express
assessment on the quality of our ideas and wishes. Together we
manpower and technology make the difference.

Abyssinia Business Nework ህዳር 2012 / November 2019 15

MICE/Meetings,
Convention Bureau and

International Hotel
Investment :
New Approach

The term “MICE” in the context of travel is an acronym for Meetings,
Incentives Travel, Conferences/ Congress and Exhibitions/Events. The
MICE market refers to a specialized niche of group tourism dedicated
to planning, booking, and facilitating conferences, seminars, and other
events, which is a big money maker in the travel industry.

The acronym has slowly been falling out of favor in recent years, as Kumneger Teketel
some industry professionals hope to move away from the affiliation
with rodents. Instead, many now refer to this niche market as the Managing Director and Lead
Meetings Industry or Events industry in tourism. Consultant of OZZIE International

However, using MICE to refer to this industry is useful in that it Hotel
encompasses every component of this particular travel market.
Whether you’re looking to organize a group outing for your company’s How do hospitality and tourism
employees (incentive) or you want to organize a big event focused on stakeholders view the concept of
the latest innovations in your field (conference), MICE travel agents MICE?
can help you book your itinerary.
Regarding the issue of MICE or
Kumneger Teketel - Managing Director and Lead Consultant of Meetings Industry , 6 and 7 years back,
OZZIE International Hotel Projects Consultancy , Award Winner of no one was familiar with the concept
African Tourism Legend 2018 & MICE ICON 2017 has recently been and I personally faced challenges to
appointed by concerned government body as Director of Addis Ababa create awareness among the general
Convention Bureau for the purpose of establishment phase which is public and concerned authorities.
currently under As a consulting firm, and voluntary
organisation to support the nation’s
Tell us about the recent convincing International investors vision in connection to tourism, we try
Exhibition of 8th Hotel Show . Honestly we faced big loss in to take some analysis on challenges and
Africa 2019 Hospitality connection to external challenges catalize the sector to guarant the return
and Tourism International and supports. Similarly, we on investment of some of International
Investment Tradeshow OZZIE faced serious damage and same Standard Hotel Projects and upcoming
have organized at the Millennium happened on others international Convention Centres. On top of that ,
Hall. expo and forum organizers. nowadays MICE or Meetings Industry
We’re tryed to communicate the is a serious agenda of the government
With all challenging environment, concerned bodies and I hope they and all stakeholders. This is Big Step.
we try all our best level and understood the issue and take Offcource we need to create deep
unexpected issues always create necessary measures. understanding through education,
major problem especially forums and practical actions. My
Organization stands till on MICE
industry movement which has not

16 Abyssinia Business Nework ህዳር 2012 / November 2019

yet begun with deep practical actions bureau permanently , rather to working on International Hotel
. Understanding is the First step. The establish properly and handover and Resort Projects and develop
future of tourism business in Ethiopia to a permanent team that to be New Concepts. How many
depends on in-depth understanding assigned by the Administration. Projects are on Pipeline
of the sector and commitment of true I personally believe that all and how do you see it?
players in the sector. We’re witnessing Professionals in different sectors
on some important steps these days should contribute something OZZIE International Hotel
which was looks encouraging like to the his beloved Nation as a Projects Consultancy is one of
establishing Addis Ababa Convention Volunteer. It costs me too much the leading consulting firms in
Bureau and Ethiopian MICE Tourism however, I should sacrifice my Ethiopia, especially dealing with
strategy . Personality, I will try my level time and benefit somehow. I hope international chain hotel projects
best to push the sector in advanced way. the main Bureau will run properly and development of new Concept
in less than 6 months as per our for MICE Tourism. We are
With your continued and relentless master plan we set. handling now over 40 hotels and
effort, you’ve managed to see the Then we can support the Bureau processing over 28 International
establishment of the Addis Ababa at higher level. Hotel Projects on pipeline that
Convention Bureau at a Capital City are secured. As a nation with
level. What does it have to do with What are the challenges to go other leading consulting firms,
hospitality and tourism? forward with the Challenges of we secured over 45 signed
Bureau? International Chained Hotels and
Honestly, Addis Ababa City Resorts Projects. In connection to
Administration has recently taken the Actually it is not a challenge in Technology transfer, development
first initiative. This is an important negativeway. We set up action plan of Human Capital and creating
milestone for MICE Tourism. Once, the that will solve the “Challenge” . I platform to use the resources by
Bureau efficiently functional, Our city hope the Administration will take local Hotels, it will create big
will enjoy and benefit from the sector it seriously and with favourable impact on the Sector in a few
especially in hunting International environment, we can handle the years. OZZIE also has lots of
meetings and exhibitions, controlling Projects in proper manner. conversion or rebranded local
and monitoring the quality of the hotels to international chain brands
meetings and events, handling proper What is your vision concerning that will give them a leverage
information and securing foreign the Bureau? to join international market. On
direct investments especially securing top of that we submitted other
measurable and reliable source of My vision is to put Addis Ababa International MICE destination
Hard Currency. On the other hand, City as one of the Top 3 MICE project proposals to the concerned
at the National level, Ethiopia needs Tourism destinations in Africa in body . We will officially announce
strong Ethiopian National Convention less than 3 years. such projects soon.
Bureau at a Federal level. I hope this
will happen soon. Establishing the What exactly does the country What about the level and quality
Bureau only is not the final goal, rather need to unleash its potential of manpower and technology in
powerful, active and trained Ethiopian in the hospitality and tourism achieving the objectives of MICE
team should be on board. The fruit will sector? and Hospitality Sector?
be realized soon.
Definitely Education and That’s why I mentioned education
We have learnt that you serve and Exposure is vital. We should is the key element. Universities
head the Addis Ababa Convention take some best practices from should start programs on specific
Bureau as a volunteer at the Capacity advanced countries. Hospitality subject. Using proper latest
of Executive Director; do you believe is a dynamic business model technology benefits the sector.
you would properly manage the center than other sectors. As a nation, So Education, Exposure and
without any payment? Professionals should be on board Technology support Ethiopian
to use the potential of our country. Tourism Sector to advanced level.
My plan and appointment is not to run OZZIE Consultancy is strongly

Abyssinia Business Nework ህዳር 2012 / November 2019 17

AHA:

Seeing Hospitality

Academy Benyam Bisrat

Benyam was a primary driver in the restructure of the Addis Ababa President of Addis Ababa
Hotels Owners Association
Hotels Owners Association/AHA/. He serves on the board of AHAas a
/AHA/
chairman. Studying Corporate Finance and Business Management
directors and employs a-12-member
at York University in Canada, Benyam returned to Ethiopia to head fulltime team. Our association has
125 star rated member hotels and we
the hospitality division of Jupiter Business Group in 2006. Currently, represent the member hotels’ interests
in Addis Ababa on various public and
the group manages two hotels, but it is developing numerous Coffee private platforms.
Retail Shops throughout the continent under the hadero brand.
Can you provide data on the number
Tell us about the Addis Ababa of hotels, rooms and beds in Addis
Hotel Owners Association? Ababa?

If we are trulyOur association was established The hotel segment in Addis Ababa is
growing exponentially. In the past
in 1997 E.C as a non-profit decade we exhibited an opening of
one brand new hotel every month in
ta“lking aboutemployers’ association under Addis and expect another 100 plus
the name Ethiopian Hotel transforming hotels coming into the supply by 2025.
Number of rooms is set to double to
and Restaurant Employers’ our tourism, we 20,000 keys by 2025 G.C from the
Association. The Founders’ goals current 10,500 as well. So evidently,
we are getting quite good at growing
were to establish an association have to have the supply.
that would support the industry
Are these all local developers?
with high quality service and exceptional Growth is coming from both local and
product offerings. Due to the accommodations, international players. We are seeing
rapid growth in the sector over existing local hotel owners expanding
their portfolio holdings by adding new
the past decade, the association not just here properties. But also new local investors
felt the need to renew itself to are coming into the sector and most of
the recent local and global international
meet the growing demand and in Addis, but developments are a result of these
needs of its members and the initiative.
throughout the
city. This’s why we reinvented

and rebranded ourselves in 2012

country.E.C. Today, the newly rebranded

Addis Ababa Hotel Owners
Association (AHA), is governed
by a seven-member board of

”18 Abyssinia Business Nework ህዳር 2012 / November 2019

Photo by Daniel Tiruneh

“Homegrown hotels need to invest contentiously faced by this Conventions, Expo) exhibitions, to
on training and development and attract and bring in events that can cater
work on empowering their team imbalance and we have been to the rising appetite. And we believe
as this is the deciding factor in Addis Ababa, as the ‘medina’ of the
determining who will be the working on demand creation Continent, has the ability to be more
survivors of this industry going competitive in the African meetings
forward.” for quite some time now. So industry as a result of its increased trade
and economic growth, political stability,
Many argue that the number supply is definitely outpacing and of course, growing infrastructure.
of hotels is higher and the
majorities don’t have business demand and we could do a lot What about the lack of quality hotel
as they expect. What’s your rooms in the market? Is service
impression on this? more to sustain and support standard of the local hotels up to par
with the global competition?
We as an association are the currentdisparity. As an

association our main objective

is to promote Addis Ababa

and Ethiopia as a destination.

Thus, to this end we are

currently participating in many

international MICE (Meetings,

Incentives, Conferences/

Abyssinia Business Nework ህዳር 2012 / November 2019 19

getting Image

The lack of quality had initiated are here to play fair game, transfer empowering their team as this is
the current boom and this has knowledge and ultimately add value the deciding factor in determining
attracted global players to enter and to the development of our country. who will be the survivors of this
leverage their respective brands. We can absolutely coexist and grow industry going forward.
Currently, Addis Ababa has more the pie together.
than 30 global international hotels How are you assisting member
under development with over 5,000 What is expected from local hotels on this?
numbers of keys. And these figures operators to thrive in the current
do not account locally-owned, market? Generally, not having a well-
independent properties under trained human capital in the service
construction or in the planning. We need to continue to focus industry has been the Achilles heel
So definitely, service is improving on service and become more of the Ethiopian tourism and we
but there is always room for strategically service oriented and have been trying to address it in
improvement. guest focused than any of our a short and long - term manner.
competitors. I could not have We have been offering several
In your view, do you think global stressed this more; however, short-term trainings, for various
brands are a threat to local we local hotels need to work on department heads and general
independent hotels? elevating our offerings and service managers to manage the gaps.
standard immensely. Homegrown However, mid to long-term strategy
Not in my view, as long as they hotels need to invest on training is a formation of full-fledged of a
and development and work on

20 Abyssinia Business Nework ህዳር 2012 / November 2019

hospitality academy in partnership Next to Oil, destinations in the same manner. If we
with the local government. Coffee is are truly taking about transforming our
the second tourism, we have to have exceptional
“If we are truly talking about biggest accommodations, not just here in
transforming our tourism, commodity Addis, but throughout the country.
we have to have exceptional in the Unfortunately, the current boom,
accommodations, not just here for most part is only here in Addis
in Addis, but throughout the world today and this is not helping our cause by
country.” and over itself. Going forward, the regional
3 billion governments need to put forward an
When do you expect the academy cups are incentive scheme that is worthwhile of
to be built? consumed the investor’s effort.
daily
The establishment of an academy of Lastly, tell us a bit about your business
this caliber represents a significant, Tourism cause. Currently we group?
multi-million dollar investment. are advocating the government
We are forging for a public- to change the current incentive Our Hospitality group was founded a
private investment partnership scheme that treats investors little over a decade ago with a passion
arrangement. The association will that are willing to invest in our and purpose to build an organic strong
take a lead role by raising up to 50% African brand against the backdrop
of the overall investment as a show of other long existing multinational
of commitment, with government players. As part of our growth strategy,
matching the raised funds and we have been exploring opportunities
allocating appropriate size plot for in the coffee sector and we have now
construction. officially launched a coffee flagship
brand for the Continent. I really believe
Why public-private? that we have a great value proposition,
and it is t time that we as a private
It is a preferred vehicle because it sector and a country take a leading
allows for such initiative to be a role in commercializing coffee, not
possibility, while ensuring efficient just as green coffee, but as value-added
timeline for completion. This model commodity.
will also allow us to concretely
respond to the country’s need for Why Coffee and what is the inspiration
high quality hospitality education behind the brand name hadero?
needs. Further, the industry is now
an important source of employment Well, how much time do you have?
and has consequently been [..laughing]Next to Oil, Coffee is
identified as one of the avenues to the second biggest commodity in the
end poverty. world today and over 3 billion cups
are consumed daily. As the originator
What strategies and directions of coffee and largest exporter of
do you set to push forward in the green coffee in Africa, we are on the
sector? bottom of the supply chain and we
at hadero aspire to change this for
As a board member of the Tourism the better. Hadero is a small town
Board, we work with other private located Southern Ethiopia and our
and public sector stakeholders brand is inspired by the craftsmanship
in championing the Ethiopian of the remarkable stallholder coffee
cultivators of the region.

Abyssinia Business Nework ህዳር 2012 / November 2019 21

ETOA:

Gaining

Momentum Yakob Melaku

President of Ethiopian Tour
Operators Association
/ETOA/

Established in 2003, the Ethiopian Tour Operators Association industry. The Association communicates
(ETOA) is a non-for profit organization representing Tour with a lot of stakeholders in its efforts to
Operators based in Ethiopia. It envisages the nation’stour and travel get solutions to pressing problems of the
sector become a major economic sector that plays its important role industry. In addition, It offers opportunities
in economic and social development of the country and Eastern to promote tourism resources of Ethiopia
African Nations through cooperation and sustainable tourism and that of East Africa. It also serves as
practices.Yakob Melaku ETOA Head reacts with ABN questions. an effective platform to support and advise
policy makers.
What are the objectives of the to include these practices in
Ethiopian Tour Operators policies and legal frameworks “We have established links with tourism
Association /ETOA/? of our country. Boards of Kenya, Tanzania, and Dubai.
• To create tourism awareness, We organized B2B events in Addis Ababa
ETAO is established with the among decision makers tourist during the last 2 years. In addition, our
following main objectives: destination communities and Association was invited to attend B2B
• To protect legitimate interests the general public. events in Zanzibar.”
and benefits of its members • To conduct research and
• To contribute towards development activities in the How do you describe your relationship
improving tourism services travel and tourism sector. with concerned bodies like local cultural
and products to international • To continuously build the and tourism offices and the like?
standards capabilities of members.
• To help build good Our relationship with Federal Tourism
relationships among stakeholders What is the most rewarding authorities can be described as good partners
deployed in the tourism sector part of being a Tour and who are striving to change the situation of
• To promote tourism Travel Association? the travel and tourism sector. We also work
destinations and resources to the closely with Culture and Tourism Bureaus
global market and by so doing to The most rewarding part of being of the Regional States and other tourism
build the national image of our a Tour Operators Association related institutions.
country is the Association serves as an
• To build relationships information and communication What are the main challenges tour and
with domestic and international hub among governmental and travel agents face at the moment?
associations and tourism-related non-government institutions
institutions. at regional, national and Currently the Travel and tourism sector of
• To learn from best practices international levels in order to Ethiopia is faced with numerous challenges.
around the world and strive promote and develop the tourism

22 Abyssinia Business Nework ህዳር 2012 / November 2019

Among the challenges, taxation on enormous since tourism has been events in Addis Ababa during the last
tour operation activates, utilization recognized as one of the main 2 years. In addition, our Association
of duty-free vehicles imported to economic sectors by government was invited to attend B2B events
offer services to tourists, existence recently. Ethiopia’s tourism in Zanzibar. The Association and
of poor infrastructure at tourist resources are very huge compared its members attended at the B2B
destinations, weak policy and legal to other well preforming countries. event. In Addition, Dubai Tourism
framework, lack of organized Board conducted three B2B events
tourism data, undeveloped domestic Do you have strategic plan that in Addis Ababa and they invited
tourism, absence of electronic paves ways to better improve the our Association and its members
payment systems and lack of operation of the agents? to attend at a familiarization
competitive human rescue are trip and B2B forum in Dubai.
among the challenges faced by the Yes, we do. The plan encompasses The Association and some of its
sector. four major pillars: advocacy, members attended at the FAM trip
marketing and promotion, capacity and. B2B. We have also established
What are the efforts your building and networking. All our links with Kenyan, Indonesian and
association exerted to solve those activities are anchored on the four US Tour Operator Associations.
challenges? What about the strategic pillars.
prospects ahead? Describe the relations you have
Do you have links with related with hotels at regional and national
Our Association has been exerting international institutions? If so, levels?
a lot of efforts to address the above who are they, and what do you do
issues. It has been communicating with them? Our tour operators work very closely
with various ministries and with hotels, lodges and restaurants
government authorities in its efforts Yes, we have established links with situated all over the county. We also
to mend solutions to longstanding tourism Boards of Kenya, Tanzania, closely work with hotel Associations
problems. The prospects are and Dubai. We organized B2B at national and regional levels.

Photo file ETOA

Abyssinia Business Nework ህዳር 2012 / November 2019 23

Ethiopian to Resume
Flight to Athens

Ethiopian Airlines, the Largest Aviation Group in Africa
and SKYTRAX Certified Four Star Global Airline,
proudly announces the resumption of its flight to Athens,
Greece effective Dec 13, 2019. Ethiopian has resumed the service
to the city of Athens after 18 years.Athens marks Ethiopian’s
20thdestination in Europe.
Filled with incredible historical sites, Athens is one of the
oldest cities in the world and Europe’s historical capital where
democracy was invented.
The thrice weekly flight to Athens will be operated by the ultra-
modern B787 Dreamliner.

24 Abyssinia Business Nework ህዳር 2012 / November 2019

Regarding the flight service to Athens, Group CEO of Ethiopian
Airlines, Mr. Tewolde GebreMariam, said “We are delighted
to return to Athens, Greece with direct services.With our
direct flight, Greece will be closer to Africa than ever before
and to the rest of our Global network. Athens will serve as
a key destination on our ever-expanding European network
and offersglobal tourists an opportunity to explore the majestic
country. As one of the world’s oldest and historic cities, the city
enjoys a high level of tourism from visitors across the world.
Hence, the resumption of the service to Athens will help meet
the exponential demand from global tourists, as well as provide
them with more connectivity options within our extensive
global network.”
With the inclusion of Athens, Ethiopian Airlines’ international
network reaches 126.

Abyssinia Business Nework ህዳር 2012 / November 2019

TRADE AND U
N
DEVELOPMENT C
REPORT 2019 T
A
By Staff Writer D

Seventy-five years ago, in the cool mountains of New Hampshire, the international community came together to
forge a new world order with one central aim: to constrain financial markets and empower states in their place.
The immediate goals of the Bretton Woods institutions were to deliver full employment, keep trade flowing, regulate
speculative capital and prevent imported deflation. The system would promote policy coordination in support
of global economic stability and discourage beggar-thy-neighbour policies that could upset that stability, while
leaving policy space for sovereign states to pursue their national priorities.

Forty years ago, market forces struck back. From the early 1970s, a series of hard economic hits unsettled the
post-war policy consensus and triggered political strife. As the decade came to a close, a newly elected British
prime minister promised to bring harmony and hope by freeing markets and releasing entrepreneurial energies;
and to emphasize that doing so would require a clean break with the Bretton Woods era she instructed her Cabinet
colleagues to brush up on Friedrich Hayek’s The Constitution of Liberty.

Mrs. Thatcher was joined six months later by a kindred spirit in Washington who – less attuned to the ruminations
of the Austrian school of economists – succinctly captured the shifting ideological mood by proclaiming that
“government is not the solution to the problem, government is the problem”.

A coterie of academics and think tanks, on both sides of the Atlantic, were ready at hand with market-friendly
policies for every economic problem, both real and imagined. Theirs was a simple message: that everything had a
price and, if markets were free to determine that price, prosperit and social harmony would follow.

The debt crisis of the early 1980s provided an opportunity to spread the message to the developing world, joined
shortly thereafter by the collapsing centrally planned economies of Eastern Europe.The attrition of the public realm
went global.

But while economic ideas were the spark plug of the neo-liberal project, the newly liberated financial sector was
its engine. Setting capital free from the constraints of government regulation and oversight opened up rent-seeking
opportunities for an energized banking sector, while a new set of trade rules (covering financial services, investment
and intellectual property rights) extended greater protection to footloose capital.

Alan Greenspan, a one-time disciple of neo-liberal scribbler Ayn Rand, had no doubt that the expansion of cross-
border finance along with a new generation of innovative financial products would turbocharge the global economy
by improving the worldwide allocation of scarce capital, unbundling and dispersing risk and boosting hedging
opportunities. This was, he claimed, Adam Smith’s invisible hand working at the international level; “unregulated
global markets do clear” he opined and, “with rare exceptions, appear to move effortlessly from one state of
equilibrium to another”.

Things did not turn out quite as smoothly as Greenspan anticipated. Booms and busts punctuated the economic
landscape, culminating, in 2008, in the deepest economic crisis since the 1930s, and revealing the darker side of
a world driven by private credit creation, underregulated banks and financial chicanery. Prospects for the global

26 Abyssinia Business Nework ህዳር 2012 / November 2019

Good times, America particularly hard hit. tensions are one likely source
Talk of “decoupling” and of increased friction. Trade has
bad times “convergence” which briefly stalled with the weakening of
united the chattering and investor global demand; growth in the first
economy are currently shrouded in classes after the global financial quarter of 2019 relative to the
a fog of international trade tensions crisis (GFC), as developing corresponding quarter of 2018
and geopolitical disputes. But, (including so-called emerging) is estimated at just 0.4 per cent.
the bigger story a decade after the economies bounced back Unilateral tariff increases by the
G20 stepped in to contain panic quickly, has gone quiet. The United States, which began in early
in markets and salvage a battered BRICS economies, which as a 2018 on specific products and have
financial system, is that growth has group saw average annual growth subsequently been extended on
failed to find a firm footing. over 10 per cent immediately a broader range of imports from
after the GFC, grew at 6.3 per China, have not helped. Retaliation
The United States is in its longest cent last year. has followed in a number of
recovery on record but it is also countries.
one of the weakest, and the impact getting Image
on incomes has been subdued. While the impact to date has been
The pick-up since the 2017 tax With debt levels higher than contained, a resumption of tit-for-
cut is fading, with little sign of ever across the developing tat tariff increases could prove very
the promised investment boom. world, totalling around $67 costly if combined with a further
Elsewhere in the developed world, trillion, keeping interest rates slowdown in investment.
the pick-up has been even more on hold would ease servicing
short-lived. The eurozone is slipping pressures. But financial markets There are other dangerous currents
back towards stagnation, with the are fickle and under the wrong beneath these already troubled
German economy showing clear circumstances can turn feral; economic waters. There is a growing
signs of fatigue; and while Brexit against a backdrop of rising awareness that the dispute between
is an unwanted distraction for the uncertainty and investor anxiety, the United States and China is
entire European economy, the United a flight from emerging markets less about tariffs and more about
Kingdom looks set for a particularly to the relative safety of the the technological ambitions of a
traumatizing 2019. United States could still trigger middle-income developing country.
a self-reinforcing deflationary Accessing foreign technology
There is a good deal of speculation spiral. helped today’s advanced economies
that recessionary winds will blow climb the development ladder and
the advanced economies, and with Not surprisingly, policymakers efforts to kick that ladder away
them the global economy, off course everywhere are scanning the by further reducing their policy
in 2020. Monetary normalization has horizon for possible shocks. space will face resistance from
already been put on hold by leading Heightened trade
central banks but there are growing
concerns that even another round
of quantitative easing will fail to
provide the needed boost to overall
demand.

Whether or not pushing down on the
monetary accelerator would again
help emerging economies is also an
open question. The slowdown this
year, 2019, is apparent across all
developing regions, with Latin

Abyssinia Business Nework ህዳር 2012 / November 2019 27

getting Image

developing countries. This could add any sharp loss of confidence falling from 149 in October to
to the already diminished levels of trust in their own currency coming 115 in December. The subsequent
in the multilateral system, with further after a rapid increase in external recovery has been partially on
damage to global economic prospects. debt could expose them to much account of higher oil prices
deeper deflationary pressures, as affected by sanctions on Iran and
Currency movements are adding to has already occurred in Argentina partially because of mild buoyancy
the sense of economic anxiety. These and Turkey. in the prices of minerals, ores and
have become much more volatile in metals.
the era of hyperglobalization with the Commodity markets have been
financialization of currency markets. on a rollercoaster ride since the A spluttering North, a general
The Morgan Stanley Emerging Market financial crisis; these are now in slowdown in the South and
Currency Index rose significantly at a softer phase, with prices well rising levels of debt everywhere
the beginning of 2019 but fell sharply below post-crisis highs. While are hanging ominously over the
between mid-April and late May, depressed demand underlies global economy; these, combined
only to climb again thereafter. Three the absence of price buoyancy with increased market volatility, a
factors are behind this volatility: sharp in many commodity markets in fractured multilateral system and
fluctuations in crisishit countries such recent months, medium-term mounting uncertainty, are framing
as Argentina and Turkey; the volatility volatility has been influenced the immediate policy challenge.
of capital flows to emerging markets by the wide fluctuations in oil
resulting from policy uncertainty in prices, by the financialization of The macroeconomic policy stance
the developed countries and weaker commodity markets and by the adopted to date has been lopsided
growth prospects in emerging markets; concentration of market power in and insufficiently coordinated to
and more generalized pressure from a small number of international give a sustained boost to aggregate
the United States Administration to trading companies. demand, with adjustments left
keep the dollar “competitive”. In an to the vagaries of the market
international financial system still The UNCTAD commodity price through a mixture of cost-cutting
heavily dependent on a predictable role index fell from 134 in October and liberalization measures.
for the dollar, turning that role long 2018 to 112 in December that Ephemeral growth spurts and
recognized as an “exorbitant privilege” year, and since then has risen to financial volatility have been the
into a source of economic ordnance reach a level in the neighbourhood predictable results. But there are
could bring more destabilizing of 120. Fuel prices drove the fall deeper challenges ahead that are
consequences. An immediate worry in the index in the last quarter of truly daunting for people and the
for many developing countries is that 2018, with the index of fuel prices planet.

28 Abyssinia Business Nework ህዳር 2012 / November 2019

o’Sign the times and private financial institutions. into long-term productive
investment, whether in the
Financial insecurity, economic At first glance the signs are public or private sectors, is not
polarization and environmental encouraging. Global corporations a matter of appealing to the
degradation have become hallmarks of are sitting on an estimated $2 trillion better nature of those managing
the hyperglobalization era. These are, cash pile, while high net worth such funds nor establishing a
moreover, closely interconnected and individuals have access to more than more welcoming environment
mutually reinforcing, in ways that can $60 trillion in assets. The OECD in which they can do business.
give rise to vicious cycles of economic, estimates that institutional investors
social and environmental breakdown. in member countries hold global In reality, too many
assets of US$92.6 trillion and while governments, at all levels,
This threat coincides with a worrying figures for institutional investors in have for decades been
erosion of political trust, as income gaps developing countries are harder to extending incentives and
have widened across all countries and come by, estimates for the assets held protections to international
the policy agenda perceived as catering by Brazilian pension funds exceed finance in the hope of boosting
to the interests of the winners from $220 billion and some $350 billion capital formation. Instead,
hyperglobalization, with scant attention for combined African pension funds. they have been sucked in to
paid to those who have seen limited Redirecting a relatively small portion an unstable financial world
gains or have fallen further behind. Even of these resources to meet the SDGs geared to short-term trading in
after the GFC, the rules of the game that should, the argument goes, be able to existing assets, prone to boom
had generated high levels of inequality, solve the financing challenge facing and bust cycles, with baleful
insecurity and indebtedness prior to the 2030 Agenda. distributional outcomes and
that crisis have remained largely intact, large debt overhangs that act
adding further layers of resentment, often A string of measures, marshalled as a persistent drag on the
aimed against outsiders, and widening under the call to “blend” and real economy. Re-engineering
political divisions. This breakdown in “maximize” finance, have been financial stocks and flows to
trust has occurred at the very moment the proposed that would channel support productive investments
collective actions needed to build a better public money into “de-risking” big (whether private or public) will
future for all depend on a greater sense of investment projects while employing not happen without a
shared responsibility and solidarity. securitization and hedging fundamental change in the
techniques to bring in the private rules of the game.
The SDGs, agreed at the United Nations investors. If only things were that
in 2015, were designed as a guide to that simple; the evidence suggests that The current global economic
future. But with their delivery planned blended finance fails to mitigate risk environment where austerity
for 2030 already behind schedule, and instead boomerangs back to the is the macroeconomic default
frustration is growing across different public purse and the tax payer. option, liberalization the
policy communities and at all levels of favoured policy tool for
development. The perceived problem In fact, vast amounts of public affecting structural change and
is a shortage of finance to achieve the resources have already been used debt the main engine of growth
scaling-up of investments on which to save banks (and other financial is heading in the wrong
the 2030 Agenda ultimately depends. institutions) that proved too big direction when it comes to
With government finances burdened by to fail after employing these same delivering on the ambition of
increased debt levels and a fractured techniques to indulge a frenzy of the 2030 Agenda. Accordingly,
politics impeding long-term planning, speculative activity in the run-up this year’s Report seeks to
pushing the financial envelope from to the financial crisis. Moreover, make an alternative case for
billions to trillions of dollars each year underpinning the vast trove of delivering the 2030 Agenda
will, it is claimed, have to rely on tapping private assets is a tangled web of through a Global Green New
the resources of high-wealth individuals financial funds and debt instruments. Deal with a leading role for the
Channelling a portion of these assets public sector.

Abyssinia Business Nework ህዳር 2012 / November 2019 29

Banking on of scale and reach because of recent history shows public banks
their ability to create credit and are expected nonetheless to be able
the public their modus operandi of forming to leap into action. They are the first
partnerships with other financiers line of defence in times of crisis when
Banking stopped being boring during and investors. But despite the credit becomes scarce, providing
the financialized transition to a use of taxpayers’ money to bail countercyclical and additional finance
globalized world, and it also stopped out the banking system and the to mitigate the economic effects of a
serving the needs of the productive recognition that current practices shock.
economy. The transformation of work against them serving the
banking into a high glamour, high productive economy, serious For the Global Green New Deal, the
paid, globalized industry came banking reform has not taken task is more of a marathon than a
with financial deregulation and place since the crisis. sprint. Here public banks have another
a surge of cross-border capital advantage, because they have a more
flows. As a result of deregulation, This is raising new questions diversified portfolio and broader
retail banking activities blended about how to make banks work geographic reach to underserved areas
with investment activities to create for people and the planet, with and segments of the economy and
financial behemoths operating growing attention to the potential (especially development banks) take
with an “originate-and-distribute” role of public banking, because it a longer-term approach. By contrast,
business model whereby loans were is distinctively different or should private (and especially foreign) banks
securitized and a range of financial be from private banking. are known for avoiding such lending
services boosted the rents they could as they pick profitable cherries
earn. The resulting shift to packaging, The important distinction is that elsewhere.
repackaging and trading existing public banks’ goals include social The paradox is that, just as
assets created a system in which the and developmental objectives, and governments are calling out for
bulk of transactions involved other this is the case as much for public much more long-term investment,
financial institutions, predatory banks operating along commercial they are at the same time exhibiting
practices became acceptable and lines as it is for development little willingness to give their public
contagion effects were aggravated. banks. They can fulfil these banks the tools for the task. Banks
objectives best when operating need to be able to scale up, to lend
The fragility of this system was within an articulated system with in the desired directions, and to be
exposed during the GFC as an other banks and in close alignment evaluated by performance metrics
estimated $50 trillion was wiped off with government policy objectives that fit their developmental mandate.
asset values. But the social cost that and instruments; however, even However, these three things do not
followed the bailout of banks that where this articulation is lacking, often come together.
had become “too big to fail” was,
if anything, even more corrosive.
At the same time, the damage to
the environment and the cost of
mitigating this is becoming more
and more visible and is also serving
to weld together a broad coalition
seeking a new way forward and more
responsible practices from the world
of banking, alongside other spheres.

The 2030 Agenda requires the getting Image
biggest investment push in history
and banks will be called upon to do
their bit. Banks can offer the benefits

30 Abyssinia Business Nework ህዳር 2012 / November 2019

initial application as compared to
one or even two years for the big
multilaterals. While some banks
in the North have similarly upped
the ante, a lot more is needed in
order to meet the vision of the
Global Green New Deal.

getting Image The stock of Some encouraging noises are
outstanding loans being heard from the different
The lead shareholders in the large made by the China levels of the banking ecosystem,
multilateral financial institutions are including central banks, which
underwhelming in their support for Development may have more space than is
capitalizing these banks, and continue to Bank was $1,635 sometimes envisaged to resume
divert significant revenues when profits billion in 2017, their traditional role of creating
are made rather than reinjecting them much larger than and guiding credit to the areas of
into the equity base. Instead, scaling up the total loans by the economy where it is needed
is being promoted through securitization the World Bank most. Indeed, central banks
and balancesheet optimization, which (for 2017, the net played this role in several of
potentially bring a whole new set of outstanding loan the successful examples where
problems. Southern governments have of IBRD and IDA countries managed to transform
been much more willing to take the lead are $177 billion themselves from agricultural
in expanding the role of public banks, and $138 billion to industrial economies. It is
in part out of a sense of frustration with only in recent years, under the
the inadequate response from the North. respectively). rubric of “independence”, that
They have established new public banks, the traditional interlinkage
and expanded existing ones, scaling up banks are well capitalized with between banks and government
so quickly that even though they only reliable funding sources, which development goals has been cut.
started to become actively engaged permits them to have a longer-
since the early 2000s onwards, they term horizon and thereby finance The extent to which governments
have surpassed the older multilateral long-maturity projects such provide support to “their”
banks. The stock of outstanding loans as infrastructure, which more development banks is an
made by the China Development Bank commercially oriented banks important factor in their success.
was $1,635 billion in 2017, much larger may not be so ready to support. Many governments require their
than the total loans by the World Bank They have also shown speedier banks to maintain high credit
(for 2017, the net outstanding loan of response, taking on average six ratings typically AAA, even if
IBRD and IDA are $177 billion and months to approve loans from this is higher than the rating of the
$138 billion respectively). sovereign itself. This gives banks
two masters: they must please
Southern-led multilateral initiatives credit-rating agencies and also
have been just as significant the BRICS meet their developmental goals,
countries’ New Development Bank and which by definition include
the Asian Infrastructure Investment riskier projects. If governments
Bank have been in operation for just a were perceived by credit-rating
few short years but are already making agencies as being more willing
their presence felt. These Southern-led to “stand by” their banks, a more
favourable rating would ease
their costs of borrowing and free
up hundreds of billions of dollars
for development lending.

Abyssinia Business Nework ህዳር 2012 / November 2019 31

Ironically, governments themselves are standard internationally designed possible route is to align better
facing falling credit ratings thanks to regulatory framework adopted by with Sovereign Wealth Funds,
the entirely predictable failure of the virtually all countries around the which are currently holding
austerity policies that were designed, world, similarly need to be more at least $7 trillion of assets by
in part, to please credit-rating agencies’ flexible. At present they treat all recent estimates, but typically not
expectations. This mess reveals once types of banks the same, and hence directed towards developmental
again that the notion of “independence” penalize institutions with long-term lending.
between governments and the banks they or riskier exposures which is the
own is an illusion and not a desirable usual terrain chosen for public and Others include increasing the
one. UNCTAD has in the past called particularly development banks. pool of resources by bringing in
for a review of the power of credit- Moreover, although Basel rules are new countries as shareholders;
rating agencies and today’s challenges adopted by national jurisdictions, or seeking a more integrated
reinforce this. It is perhaps time to they also affect multilateral and approach between such financial
design a new metric for evaluating large regional development banks, at institutions and regional capital
public investment projects that more least indirectly. markets, whose potential has, to
accurately assesses their social and date, been underexplored.

getting Image

economic dimensions, rather than being The banks that suffer most are the ll this requires rejection of the
based on narrow financial measures and smaller regional banks that end up notion that markets always
ideological biases. holding too much capital for the know best. There is a growing
total of loans they provide. At the acknowledgement of the idea
What is also important is the wider same time there is the paradox that, that governments should
regulatory environment in which public even as regional developmental underwrite risks, staunch leaks
banks operate. Global rules need also needs are so severe, the banks and fill gaps left by private
to be refigured in light of the new that serve such regions are often banking but public banking in
needs. The need to review trade and dismally small. There is, therefore, the past has proved to be catalytic
investment agreements that bind the an urgent need to find ways to and game-changing; the current
ability of policymakers to use capital capitalize such banks so that they situation offers opportunities to
management policies was suggested can support national country needs play this role again.
above. The Basel norms and rules, a and also regional projects. One

32 Abyssinia Business Nework ህዳር 2012 / November 2019

Nokia to revolutionize

Technology “We are excited to support the universities in
Ethiopia in their objectives to play a leading
By staff writer role in setting standards in the quality of
engineering education, research, innovation and
The renowned Finnish multinational telecommunication, business incubation. We look forward to helping
informationtechnology,Nokia Corporation, and consumer students acquire the necessary skills in the latest
Electronics Company signs Memorandum of Understanding technologies, such as 5G, cloud computing and
(MoU) with Ethiopia’s top Technology Institutes. data analytics.”Daniel Jaeger, Head of Central
East and West Africa Market Unit at Nokia, said.
The Company signed the MoU with the Addis Ababa
Science and Technology University (AASTU) and Addis Dr.-Eng. Getahun Mekuria, FDRE Minister of
Ababa Institute of Technology (AAiT) to partner in Innovation and Technology and Ville Skinnari,
promoting digital skills and innovation in Ethiopia. Finnish Minister of Development and Trade
witnessed the signing ceremony of the MoU.
The MoU was signed by Dr. Dereje Engida, President of
AASTU, Dr. Engineer Isaias Gebreyohannes representing On the occasion the Ethiopian Minister briefed
AAiT and Daniel Jaeger, Head of the Central, East and Skinnar on the broad activities being undertaken in
West Africa Market Unit at Nokia Corporation. his country in the innovation technology sectors.

According to the agreement, Nokia Corporation will Ville Skinnari for his part pledged to invite
arrange training on the latest technologies and experience Finnish investors to take advantages of the
sharing programs for both AASTU and AAiT. The investment opportunities in Ethiopia. It’s to be
collaboration will support the students in acquiring the noted that Headquartered in Espoo, in the greater
right competencies and the necessary skills to succeed in a Helsinki metropolitan area, Nokia Corporation
fast-changing labor market. was founded in 1865.

Photo by Daniel Tiruneh

Abyssinia Business Nework ህዳር 2012 / November 2019 33

Solar: Ethiopia’s

Future Energy

By Samuel Tekleyesus

(The writer has MBA in Finance; he’s a
lecturer, researcher and business consultant)

Ethiopia has an abundance of potential renewable energy getting Image
sources that, ifpursued, could significantly change the
nature of Ethiopia’s current energy sector which heavily of renewable energysources. The country
dependson the use of traditional source towards a future currentcapacity is 4.5 GW excessively dependent
of country wide electrification.Ethiopia’s Growth on its hydropower plantspower generating
andTransformation Plan (GTP)considers renewableenergy capacity which came from 14 hydropower
as one of theleading new drivers of economic growthin plants, whichaccounts for more than 85% of
the country.Under GTPII, the countryplans to increase the the total capacity. Other large hydro plants are
current electricity generation capacity to 17 GW by 2020. also currently under development including
As per the report of the Ministry of Water Irrigation the massive Great Ethiopian Renaissance Dam
and Electricity, in Ethiopia 90 % of the population use (GERD), the Koysha Hydropower project and the
traditional biomass for cooking and 70 % use kerosene for GenaleDawa III project.Other thanhydropower,
lighting.According to sources, around 45% of Ethiopia’s the country also has threewind farms, collectively
populationcurrently has access to electricity grid. generating 324MW, and a few diesel plants,
generating143 MW, with the rest being generated
To bridge thegap between abundant resources with the bysolar power (14 MW), geothermal power(7.5
needs the country launched theNational Electrification MW) and other renewables.
Program(NEP) in 2017 in collaboration with the World
Bank by outlining a plan to reach universalaccess of Based on the Ministry of Water Irrigation and
electricity by 2025.

In 2018 the Ethiopia ElectrificationProgram (ELEAP)
was launched by thecountry’s government together with
theWorld Bank to directly support the NEP.For the millions
of people living in remote rural areas of Ethiopia who lack
access to the power grid or cannot afford electricity, solar
energy can be an important first alternative on the energy
access basket.

Ethiopia’s power generation mix consistsentirely out

34 Abyssinia Business Nework ህዳር 2012 / November 2019

Electricity, there is an abundant has almost tripled, the solar Enel renewable energy was selected,
solar irradiation which can be energy sector in Ethiopia is the constructionis scheduled to come
utilized as source of Electricity. still in its earliest stages of online by the end of 2019.
The national annual average developmentrepresenting 0.3%
irradiance is estimated to be of the country’s totalenergy The second tender was launched
5.2 kWh/m2 /day with seasonal capacity. in 2017 for the constructionof two
variations that range between 125 MW solar facilities in Gad and
the minimum of 4.5 kWh/m2 Ethiopia has prioritized Dicheto which a Saudi Arabia’s Power
/day in July to a maximum of construction of large-scale solar firm, ACWA has won it with the record
5.6 kWh/m2 /day in February projects in the regions of Afar, low tariff rate in Africa. In January
and March with a higher annual Somali, Oromia and Tigray, 2019, the newly formed Public Private
average irradiance well above onPublic Private Partnership Partnership (PPP) Board has approved
6 kWh/m2 /day in rift valley (PPP).In 2016, the state-owned six solar energy projects at a cost
regions, Western and Eastern Ethiopian Electric Power (EEP) of USD 795 million with capacity
lowlands of the country. Even launched the country’s first solar to generate some 750 megawatt of
thoughover the past five years tender for the 100 MW Metahara electricity.
Ethiopia’s solar PVcapacity and Italian energy company

Abyssinia Business Nework ህዳር 2012 / November 2019 35

S/N Project Name Capacity Estimated Region
1 Metehara Solar (MW) Project cost Oromia

100 (USD Million)

120

2 Gad Solar Scale (Phase I) 125 150 Somali
3 Dicheto Solar Scale (Phase I) 125 150 Afar

4 Mekele Solar 100 120 Tigray

5 Humera Solar 100 120 Tigray

6 Welenchiti Solar 150 165 Oromia

7 Weranso Solar PV 150 165 Afar
8 Metema Solar PV 125 150 Amhara

9 Hurso Solar PV 125 150 Dire Dawa

Source: Own compilations from different sources

In conclusion, Ethiopia has a large getting Image
population with a rapidly growing
economy and very low level of as the government considers private The high degree of solar PV
electrification. Ethiopia is doing and foreign direct investments in potential in Ethiopiaoffers an
very well withregards to generating renewable energy sector is critical to extremely profitable opportunity
electricity throughhydropower butthe the success of the plan.This shows a for investors in the development
current capacity is extremely small large potential to invest significantly of solar PV projects.
for a country with such rapidly in energygeneration and transmission.
growing energy demand and needs to
be supported by alternating sources
such as wind and solar.Underlying
solar energy with a potential to be
used in both small- and large-scale
electrification measures, currently
it only takes up a small part of
Ethiopia’s power mix.

On the other hand, the country’s
ambition on massive industrial
complexes and agricultural farms
create a big opportunity for investors

36 Abyssinia Business Nework ህዳር 2012 / November 2019

eTrade for Women initiative wants to digital knowledge and skills they need to
Women masterclass promote women’s digital succeed.
economic empowerment,” said
For the masterclass, Ms. Torbjörn Fredriksson, in charge of The masterclass in North Macedonia will
Angelovska will be joined by UNCTAD’s ICT policy section. be followed by similar sessions in China,
instructors from companies Côte d’Ivoire, Indonesia, Iran, Mexico
such as Booking.com and “One way to do this,” he said, “is and Rwanda, delivered by the other six
Seos.si. to inspire more women digital UNCTAD eTrade for Women advocates.
entrepreneurs. The other is to The eTrade for Women initiative is
Sessions will cover the ins give women digital entrepreneurs financially supported by the Dutch
and outs of growing an online a bigger voice in policymaking.” government.
business, such as search engine UNCTAD is organizing the
optimization and social media masterclass with the finance
marketing, and how to turn raw ministry and the Macedonian
data into digital intelligence. E-commerce Association.
The association’s secretary
But the participants will general, Victor Stojkoski, says
also learn how to voice their they believe that a better future for
concerns to government North Macedonia can be created
officials so that new policies “by embracing digitalization and
affecting e-commerce make becoming a smart society.”
it easier for women to do
business online. In integral part of building such
“Overall, the eTrade for a society, he says, is helping
women entrepreneurs build the

Celebrating the contributions to people’s lives, Approximately 26 million farmers grow
value of cotton both as a fibre and a source of cotton, in 75 countries. Growing cotton
livelihood. and processing it into, for example,
You are rarely too far from textiles and apparel, provides jobs and
something made of or “Cotton’s many industrial incomes to approximately 100 million
containing cotton. applications make it an ideal families worldwide.
foundation for upgrading and
In clothing, linens, furniture, diversification strategies that Cotton is a drought-resistant crop,
mattresses, vehicles, dollar allow producing countries providing reliable income to farmers in
bills and much more, cotton to benefit more from trade,” areas where agriculture is under serious
is always around us. It’s the UNCTAD Secretary-General threat from climate change and/or
most abundantly produced Mukhisa Kituyi said. recurrent drought.
natural fibre in the world, yet
we rarely celebrate it. Incomes for 100 million families Cotton occupies just 2.1% of the world’s
arable land, yet it meets 27% of the
That is set to change on 7 world’s textile needs. It is also one of the
October, when UNCTAD most important traded commodities, with
and its partners will mark an annual traded value of approximately
the first World Cotton Day US$8 billion.
in Geneva, Switzerland, in a
global celebration of cotton’s The cotton value chain is long, with
multiple processing steps, leading to
investment, job creation and industrial
upgrading.

Abyssinia Business Nework ህዳር 2012 / November 2019 37

Africa: A growing population of 1.28
billion people (42% of which are
Upcoming in cities), a snowballing middle
class expected to reach 1.1 billion
Mobile Market out of the 2.5 billion Africans
by 2050 - leading to a higher
Credit: Josephine Wawira purchasing power - are among the
considerations for Africa’s mobile
explosion.

Other factors that have driven
much of Africa’s growth in
mobile subscriptions include more
affordable smartphones, declining
mobile data plans, the efficiency
brought about by smartphones
including online shopping/
purchases, mobile payments as
well as searching for information.

Africa is judiciously positioned to be Nevertheless, the growth of
the next big mobile market, enviously mobile will remain uneven, as
eyed by global investors for its the 54 African countries record
enormous growth opportunities. 2019 varying performances, both in their
is undeniably the year to prioritize respective mobile markets and the
investments in Africa’s mobile entire economies.
market, to leverage this monetary
opportunity. getting Image In 2018, Africa had 255 million
smartphone connections, which
According to a Mobile Report for is equivalent to 36% of the total
Africa released by Jumia, Africa’s population. This is against a
leading e-commerce platform, the 444 million mobile subscriber
continent’s real output growth is base in the continent by 2017.
expected to reach 4.1% by the end of By 2025, they are expected to
2019; from an estimated 3.5% in 2018. be approximately 690 million
The growth is expected as a result smartphones in Sub-Saharan
of improvement in macroeconomic Africa, equating to a connection of
conditions in the continent. about 66%.

The Mobile Economy contributed Although affordability of the
USD 110 billion to Africa’s GDP smartphone has been quoted as
(7% of the total GDP) in 2017 and is a major challenge for a part of
expected to generate more than $150 the population, Jumia - Africa’s
billion (approximately 7.9% of GDP) leading e-commerce platform -
by 2022. The mobile technologies and has reported a decreasing average
services industry further supported 3 price of smartphones over the last
million jobs in 2017. three years.The average amount
spent to purchase a smartphone on

38 Abyssinia Business Nework ህዳር 2012 / November 2019

Image source: Gallo/Getty.

the platform in 2016 stood at 99 USD, 2G will have dropped to just 14% “This is the first smartphone
which reduced to 96 USD in 2017 and of the total connections. manufacturer in Africa,” Thakkar
95 USD in 2018 respectively. told Reuters after touring the
Rwanda’s Mara Group company alongside Rwanda’s
However, the rise of affordable entry- has recently launched two President Paul Kagame.
level devices from price-focused brands smartphones, describing them
remains a key driver of smartphone as the first “Made in Africa” Companies assemble smartphones
adoption in Africa. Among the top models and giving a boost to the in Egypt, Ethiopia, Algeria and
mobile brands on Jumia in 2018 country’s ambitions to become a South Africa, but import the
included Infinix (which has been thee regional technology hub. components, he said.
top brand for the last three years),
Samsung, Xiaomi, Tecno and Fero. The Mara X and Mara Z will “We are actually the first who
use Google’s Android operating are doing manufacturing. We are
Besides, while affordability of mobile system and cost 175,750 making the motherboards, we are
data in Africa is improving across the Rwandan francs ($190) and making the sub-boards during the
board, the cost remains high, with the 120,250 Rwandan francs ($130) entire process,” he said,and added,
price of 1GB averaging around 8.76% respectively. “There are over 1,000 pieces per
relative to monthly income in 2017. phone.”

Sub-Saharan Africa is experiencing They will compete with Samsung, Thakkar said the plant had cost
a high migration rate to mobile whose cheapest smartphone $24 million and could make 1,200
broadband-capable connections, with costs 50,000 Rwandan francs phones per day , and Mara Group
5G connections expected to launch in ($54), and non-branded phones hopes to profit from the African
Africa in 2021. In 2018, 4G stood at 6%, at 35,000 Rwandan francs Continental Free Trade Agreement,
3G at 35%, while 2G dominated at 59%. ($37). Mara Group CEO Ashish a pact aimed at forming a 55-nation
By 2025, 5G will account for 3% of the Thakkar said it was targeting trade bloc, to boost sales across
total connections, while 4G will rise to customers willing to pay more Africa.
24%. 3G will be dominant at 59%, and for quality.

Abyssinia Business Nework ህዳር 2012 / November 2019 39

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Abyssinia Business Nework ህዳር 2012 / November 2019 41

“? ” ለመዝናናት በሔድኩበት ሰዓት ነው ። ነው፣ እንደዚህ ነገሩ ሁሉ የህሊና ቀርቶ
የመጀመሪያ ቀን ያየኋት በዩኒፎርም የዳቦ የሆነበት?።
በዳንኤል ጥሩነህ ሲሆን ፣ ሆኖም ግን የለበሰችው
አጭር ቀሚስ ልዩ ውበት ሰጥቷታል ከየትም አቅጣጫ ይምጣ በየትኛውም
እሙን በጣም ነው የምወዳት ፣ በደንብ እንዲታይ የሰውነት ቅርጿ የድምጽ ቃና ብቻ የሷ ስም ይሁን እንጂ
ሙሉ ህይወቴ ለሷ የተመሰረተ እስኪ እድሉን አመቻችቷል። እሙ ሁሌም መልሷ ወዬ ነው። ታድያ ወዬ
መስለኝ ። የዕሙም መውደድ ግን ብዙም ቆንጆ ባትባልም ሆኖም ያመጣብኝ ጣጣ ። የካሮት እድገት ሆኖብኝ
ከናፍሯ ላይ ከኔ በተሻለ ነው ። ሆዴ ያላት የሰውነት ቅርፅ አቤት ፣ ይሄው ዓመት አስቆጥሬያለሁ ከወዬ
… ዛሬ ሙሉ ቀን የት ነው ጠፍተህ ወዴት ? እንድትል በሩን ክፍት ጋር፣ በመሃከል በተዋወኳት ሶስተኛ ወሬ
የዋልከው ? እንዴት እንደናፈከኝ ፣ ነው የሚያደርግው። ዓይኖችህ ይመስለኛል በሳምንቱ የመጨረሻ አንዱ ቀን
ስትጠፋ እኮ ይጨንቀኛል ። ያነጋገር ማረፍ እስኪያቅታቸው ድረስ ልጋብዛት ፈለኩና ምን ማድረግ እንዳለብኝ
ለዛዋ ከዜማ ጋር የታጀበ ስለሆነ ነው ሰላማቸውን የምትነሳቸው። ከራሴ ጋር ማውራት ጀመርኩ ። እንዴት
እንዴት ደስ እንደሚል ። የአፍንጫዋ አቀማመጥ ብዙም ግን ትወደኛለች ? ስል የመጀመርያ ጥያቄ
ባይባልም እኔ ስለወደድኩት ለኔ ለራሴ ጠየኩ ። ለምን አልጋብዛትም ብዬ
ከእሙ ጋር የተገናኘ ነው ተቀጥራ ተውልኝ ። ብቻ የውስጤን ምን እራሴን ደፋር አደርኩት። አድራሻዋን አንድ
በምተሰራበት ሆቴል ውስጥ እንደነካችው ባላውቅም ነገረ ስራዬ ትሰጠኝ ጠየኳት ከቢል ጋር አብሮ መጣልኝ
ሁሉ የሚያስበው እሙን ነው ። የኔ ። እስከምደውል እንዴት ሰዓቱ ይሂድልኝ
እንደዛ መሆን ለእሙ…ሌላው ቢቀር የአመት ያህል ነው የራቀብኝ ። መድረሱ
ስለመፈጠሬም የምታቀው ቦታው አይቀርም ረፋዱ ላይ ደወልኩላት።
ላይ ስገኝብቻ ነው ። የትኛው ዘመን ከእንቅልፏ እየተንሳች ነበረና ድምጿ ትንሽ

42 Abyssinia Business Nework ህዳር 2012 / November 2019

ወፈር አለ ቢሆንም ግን ለኔ የትኛውም ፈጣን ነበር ። ምንም ችግር የለውም ተያይዞታል 45 ደቂቃ አለፈ እሙ
ይሁን ማናገሬን ብቻ ነው ያሰብኩት የት ስትል ቶሎ ለመመለስ ጠየቀችኝ ፡ አሁንም አልመጣችም። ስልኳ ላይ
ሆኖም ግን ስወጣ ልደውልልህ ብላ አንቺን የተመቸሽ ቦታ ፣ ሳሮን 7ሰዓት ልሞክር ብዬ ስሞክር ስልኳ አይሰራም
ብዙ ሳታዋራኝ ስልኩን ዘጋችው ። እንገናኝ ብላኝ ወደ ስራዋ ተመለሰች ። ምን ሁና ይሆን ብዬ ተጨነኩ ።
ደስታዬ ወደር አልነብረውም ። ወደ ቤት ደጋግሜ ስልኳ ላይ ደውልኩ ዝግ
ስልኬ በጮኽ ቁጥር የሷ እየመሰለኝ ለመሄድ በጣም ነው የቸኮልኩት ። እሙ ነው ። 1፡20 ደቂቃ ያህል ከጠበኳት
እደነግጣለሁ ። የሷ ስልክ ግን የውሃ ሂሳብ መታ እስክትወስድ አላስቻለኝም በኋላ ወደ መጣሁበት በመጣሁበት
ሽታሆነ ! አላስችል አለኝና ደውልኩ እዛ አቁነጠነጠኝ ። እሙ ሳትመጣ መሄድ እግሬ ተመለስኩ ። አላስችል ስላለኝ
እንገናኝ አለችኝ የስራ ቦታዋ መሆኑ ስለሌለብኝ በተቻለኝ አቅም ጠበኳት የመጨረሻ ብዬ ስሞክር ስልኳ ሰራ
ነው ። ሰዓቴን ጠብቄ ሄድኩ ። ሰላም እሙ ግን ልትመጣ አልቻለችም በአይን ደስ አለኝ ። እየተንተባተብኩ እሙ
ነው አባት ብላ ሞቅ ባለ ሰላምታ ምልክት ሰጥቻት ወጣሁ ። በሰላም ነው ብዬ ጠየኳት …የእሙ
ከሰጠችኝ በኋላ ምን ላምጣልህ መልስ ግን ፣ ተመሳሳይ ነበር ይቅርታ
ስትል ጠየቀችኝ ቡና አልኩ አፌ ላይ የሌሊቱ ርዝመት ለኔ ለመጀመሪያ ግዜ ማን ልበል አላወኩህም?
የመጣው እሱ ስለነበር ። የፈለኩት ግን ነው ። እሙን ላገኛት ስለሆነ ብዬ ግን
ቡና አልነበረም ። እሙን ነበር ውስጤ በትዕግስት አሳለፍኩት የማይደርስ ወዬ ማን ልበል
የፈልገው ። እሙ ፈጥና ቡናውን ይዛልኝ የለም ሰዓቱ ደረሰ ደስ አለኝ ። እሙ አላወኩህም ?
ስትመጣ ያለኝን አቅም አስባስቤ አልመጣችም ! የሴት ነገር ስትቀባባ
ውጭ ምሳ ልጋብዝሽ ፈልጌ ነበር ስል ይሆናል ብዬ ፣ 30 ደቂቃ ጠበኳት
በፍርሃት ጠየኳት የእሙም መልስ አልመጣችም ሰዓቱ መቁጠሩን

Abyssinia Business Nework ህዳር 2012 / November 2019 43

ABN

10

?Questions
BY AKLILE TSIGE Zelalem Merawi
General Manager
Zelalem Tour and Travel Agent,

and Ker Ezhi Leather

Born in Ambo, West Oromia Regional State, Zelalem Merawi grew up there until the age of six, he then
moved to different parts of Ethiopia, including Addis Alem and eventually to Addis Ababa where he had
completed his secondary education at Shemeles Habte Comprehensive Secondary School. Zelalem had
gone through various rigorous hardships to reach where he is now; at very young age he has worked at
a garage and as a shoe shine boy to sustain his own and family’s life.

Having completed his secondary education, he had begun working as a driver for his uncle’s vehicle with
a monthly salary of 300 birr; and later he was employed by a tour and travel company .As a child Zelalem
was highly inspired by local guides who used to help visitors at Addis Alem town where there are tourist
attractions like Emperor Menelik Palace and Saint Mary Church. This had opened doors toZelalem to
follow his childhood dreams, to establish his own tour and travel, and superior quality leather products
sale companies.

AklileTsige, ABN Editor-in-Chief speaks to General Manager and Owner of Zelalem Tour and Travel
Agent, and Ker Ezhi Leather products Sale, Zelalem Merawi on his life path and business matters.

44 Abyssinia Business Nework ህዳር 2012 / November 2019

ABN: How did you begin your despite its abundant and unique called Courage Ethiopia in 2013.
business in tour and travel tourism potential, it doesn’t This initiative was accompanied by
business? properly unleash these sources. a portal web site tourism directory
This was really annoying and which was visited by 7.5 people and
Zelalem: While growing up in disturbing me at that moment. I had also tourist guide book which had
Addis Alem where many tourists to investigate the needs of visitors a twenty thousand circulation per
used to visit the tourist attractions regarding quality and standards edition. This tourist guide book or
such as the Menelik Palace and of good tourism operation. So magazine had been in publication for
Saint Mary Church, I had the my job was to upgrade the ways nearly four years until 2017.
chance to get insight into what and approaches in the business
tourism mean, what local guides through recruiting well-trained The tourism industry needs a
were doing. Moreover, I was professionals for Zelalem Tour and sustainable and effective promotion
working at a garage where vehicles Travel Agent. so that the country could benefit from
of tour operators had been fixed. the sector. As it’s called a smokeless
This also had an impact on my ABN: What about the job industry, it is the only economic
interest in tourism. Then I was opportunity your company has sector that the country could earn
hired by a tour and travel company; created for citizens, and the good foreign currency without
while working at this company I vehicles the company is using? spending money on it. I strongly
continued my education on tour believe that we have done our
operation supervision in extension Zelalem: Zelalem Tour and Travel level best to promote the country’s
program.I had worked only for two Agent has created job opportunity tourism.
years here. When tourists made for nearly twenty five permanent
attempts to tip me I used to tell and freelance employees working “We are now mainly producing
them that I would have my own with not less than eighteen different different superior quality leather
tour and travel company, and you quality and up-to-date vehicles the jackets, gym bags, travelling bags,
would help me then. I first ran a industry currently require. ladies bags, hand bags toilet bags,
car rental business; then I decided cosmetics bags, various male and
to start operating my own tour and ABN: You are also well-known for female wallets, and other products.”
travel Company in 2008.This’s your contribution to the promotion
how all began. of the country’s tourism sector. ABN: What honors and awards
Tell us about this. have you received so far for your
ABN: So, how did it go?....I mean effort in promoting and doing tour
how was the business then? Zelalem: Of course, I was strongly and travel business?
motivated to promote the nation’s
Zelalem: You know I was well tourism potential at the outset; so Zelalem: I have, indeed,
aware of the fact that Ethiopia, I had to launch a sister company received various recognitions and

AWARD

Abyssinia Business Nework ህዳር 2012 / November 2019 45

acknowledgements both at home “I’m dreaming of input for all development agenda.
and at an international level. I have establishing
got honors from the FDRE Ministry a globally- “I think the current chaos
of Culture and Tourism and known huge and socio-political turmoil in
Ethiopian Tourism Organization at leather our country will pass. So I’m
different times. I have also received industry that dreaming of establishing a
Century International Quality globally-known huge leather
Award which is an internationalgold produces industry that produces uniquely
award, and also Quality Service uniquely Ethiopian leather products for the
and quality management Award in Ethiopian international market.”
Geneva, Switzerland. leather
products ABN:What other business do you
ABN: Have you ever engaged for the run?
in discharging your social
responsibility, or any community ”international Zelalem: I haven’t been stuck only
development activity? market. with the tourism business. I had to
search for another feasible business
Zelalem: yes, our company has canceled. The government has to which is directly or indirectly
been participating in various social pay due attention to maintain peace related to the sector. I have learnt
activities. For instance, we have and stability across the country; the that there is a gap in leather and
managed to develop green areas in path we are taking this time around leather product market in Ethiopia.
a bid to participating in the national is not good. The image we have built I have also learnt that Ethiopia’s
environmental protection endeavor; for a long period of time seems to hides and skins are of superior and
places such as Meskel Square and in be ruined, and it might take long to good quality to produce leather
front of the newly inaugurated Unity rebuild a destroyed image. Ethiopia products that could attract both
Park have been rehabilitated by our is endowed with all types of tourist local and global shoppers.
company, and tried to change the attractions in all types of seasons; we
ugly faces of the areas. Furthermore, don’t have to lose the opportunity to A good number of foreigners are
we have managed to plant various unleash the potential in a sustainable coming to the country for regional
indigenous trees at Entoto Botanic manner. So I could say that the and continental and international
Garden. Wehave also donated Ethiopian government and the people conferences and tourism purposes
blood in connection with our tenth need to take peace as a significant here in the capital, Addis Ababa;
anniversary. Regarding capacity these are tourists who could buy
building, we did our best to cover quality Ethiopian leather products.
the training cost of at least fifteen Then I decided to get into leather
young Ethiopians who have finally business. First we have changed
run their own tour and travel agents. our Tour and Travel bureau nearby
Monarch Hotel at Bole into leather
ABN: How do you assess the show room. We have begun with
existing situation of the country’s only two machines, changing
tourism sector? semi-finished leather products
to finished leather products,
Zelalem: Oh, right now while you and found it was a feasible and
and me are holding this interview profitable business.
the situation is worsening. During
this high season the political “When the going gets tough the
instability is jeopardizing the sector. tough get going, that’s what I
As a result, significant numbers of believe”
tour and travel schedules have been
We are now mainly producing

46 Abyssinia Business Nework ህዳር 2012 / November 2019

different superior quality a difference in the quality of opportunity to attract various tourists
leather jackets, gym bags, leather product. across the globe.
travelling bags, ladies
bags, hand bags toilet bags, ABN: What technologies do ABN: What’s your vision?
cosmetics bags, various male you use for your business Zelalem: By the way, I usually see
and female wallets, and other marketing? light at the end of the tunnel amidst
products. Nearly thirty five of difficult situation. When the going
professionals are currently Zelalem: I have been to 27 gets tough the tough get going, that’s
working at this unit. We do countries across the world where what I believe. I think the current
have three showrooms in the I had the chance to experience chaos and socio-political turmoil in
capital, and one at Kuriftu different technologies. This our country will pass. So I’m dreaming
Water Park in Bishoftu, and exposure helps me to launch of establishing a globally-known
preparation is underway to online reservation, online huge leather industry that produces
open our fifth branch at the booking, and online payment uniquely Ethiopian leather products
new terminal of the Addis system on our website. In for the international market. Regarding
Ababa Bole International addition, we have been the first tourism, I want to see a company that
Airport;every showroom in Ethiopiato launch a portal makes use of world-class technology,
sells products for at least website that can be translated and helps the nation’s tourism sector
400 to 500 USD per day. I into 72 international languages. generate significant amount of foreign
think our company is making This technology is a great currency.

PhotPohfioletozfeillaeleomnetopuerace fashion

Abyssinia Business Nework ህዳር 2012 / November 2019 47

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40 Abyssinia Business Nework ህዳር 2012 / November 2019