Abyssinia Business Network ABN Feb 2020

Total Thibault Lesueur

Ethiopia Total Ethiopia Managing Director

Keeps Energizing

2nd YEAR NO 24 የካቲት ወር 2012 February 2020 www. abyssiniabusinessnetwork.com

Ethiopia 50.00 birr , USA 5.00 $ , Europe 5 .00 Euro , Global Link
South Africa 25.00 Rand , Kenya 500 Sh ,UAE 10.00AED
Abyssinia Business Nework የካቲት ወር 2012 February 2020

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Abyssinia Business Nework የካቲት ወር 2012 February 2020

Abyssinia Business Nework የካቲት ወር 2012 February 2020

Editorial Team Editorial

MANAGING DIRECTOR Renewing History

Daniel Tiruneh The hospitality and tourism industry in Ethiopia has
MANAGING EDITOR reportedly been growing in a crawling rate; but many argue
that an alarming rise should have been witnessed in the
Getachew Alemu sector if key stakeholders and government’s commitment
EDITOR IN CHIEF had been as the nation’s desire.

Aklile Tsige So far the country’s effort in tourism and related
CONSULTANCY development remains nonmoving and willy-nilly.
Expected job opportunities from the sector also remain a
Zeima Ahmed dream of distance future and the nation couldn’t reap as
STAFF WRITERS much fruit as it needs to have.

Mekonnen Hailu However we have to recognize and acknowledge the
attempts being undertaken by the incumbent government
Ketema Kebede to create and develop tourist attractions across the country.
One recent development is the construction, restoration
Chacha and inauguration of the Unity Park that took only six
Hiwot Salelew months for completion.

Teshome Fantahun The Unity Park as its name implies stands as a symbol for
unity among the various nations nationalities and peoples
REPORTER of Ethiopia, as a symbol for rich historical, natural and
Josephine Wawira cultural heritages of the nation, as a symbol for source of
Kamba Anthony inspiration to undertake any project in the country.

Joseph Oduha Once a torture and butchery site, the 20 hectares of the
Designer palace compound has now got new face for all ages of
visitors; this untouched and confined spot was for long
Daniel Tiruheh period of time a site people never give a look at, and a site
Photo where no one was allowed to take pictures around.

Sol Image Despite the various socio-economic and political crises
Web Admin across the country, we have to appreciate this initiative
taken by the FDRE Premier Dr. Abiy Ahmed who has
Rahel Tesfaye significantly contributed to the realization of the five
Distribution billion birr project, boosting the number of tourist
destinations in the capital Addis Ababa in particular and
Hailu Abesse Ethiopia in general.
Partners
Ethiopia Culture And Tourism Most importantly, it appears an initiative that provides a
Addis ababa police Commission one-stop tourist service, showcasing the various natural,
cultural, historical and political landscapes of Ethiopians
Ethio Great Investment Support Service PLC over the past 130 plus years. Renewing our past and
shaping our future is like killing two birds with a stone; it
Abyssinia Business Network is published by adds beauty to the site and generates income to the nation.
May the Lord open our eyes to unveil lots of our hidden
EYUDAN MEDIA PLC treasures!

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02 Abyssinia Business Nework የካቲት ወር 2012 February 2020

Abyssinia Business Nework የካቲት ወር 2012 February 2020

The battle of Adwa had
a significant national and
international consequences and
it occupied a unique place in
the Ethiopian and African

historiography

Abyssinia Business Nework የካቲት ወር 2012 February 2020

40

CONTENTS

10Keeps Energizing 4410 Questions
E-commerce
60% newly 36 42
Growth
30approved ጌጡ ተመስገን
( የጉዞ ማስታወሻ )

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Abyssinia Business Nework የካቲት ወር 2012 February 2020 05

nity Park symbolizes our ability

U to come together for a common
goal and cross the finish line by
creating exquisite lasting prints of our

“ ”collective worth

FDRE Premier

Abiy Ahmed /PhD/

06 Abyssinia Business Nework የካቲት ወር 2012 February 2020

Abyssinia Business Nework የካቲት ወር 2012 February 2020 07

Mama’s Kitchen

at Unity ParkEstablished in 2004 E.C., Mama’s

Kitchen aims at advancing modern
hospitality concepts in Ethiopia. Owned
by Girma Degu who has established

The Unity Park,himself working in leading hotels such

as Hilton Addis and Sheraton Addis
Hotels and worked his way into being

indeed, remainsrecognized for his hard work and

a les“son to all ofdiligence service.

After performing a lot of consultancy
services for talk of the town hotels, us that we can do
restaurants and clubs, Girma’s dream

to open his own business has ultimately anything in a short

come true. His first branch of Mama’s
Kitchen chain which soon grew to be

legendary for its unique dining menu period of time
with the best customer service in
town-Baritone Lounge and Restaurant

was opened in 2008 E.C, which was with good spirit
followed by Royal Lounge in 2009 E.C.
Mama’s Inn branches opened at Bole 22

in 2010 E.C. and Mama’s Inn at Meskel and shared vision,
Flower branch in 2011 E.C. In order to
host Mama’s Kitchen international and

regional guests, Mama’s Kitchen Unity and also a platform
Park was opened in 2012 E.C after
winning a bid floated by the Unity Park

Administration. to develop good

Mama’s Kitchen owner and General working- culture

Manager, Girma Degu said, “Getting
into Unity Park has really paved

ways to promote our business to

different visitors, mainly high profile

personalities coming from different

parts of the world, including Heads of

States and Ministers.”

08 Abyssinia Business Nework የካቲት ወር 2012 February 2020

Ethiopian Prime Minister Dr. Abiy
The owner further noted that building endeavors being Ahmed needs to be appreciated and
Mama’s Kitchen offers all types undertaken in the country.
of services it’s rendering in its acknowledged for his relentless efforts
other branches, maintaining all
the quality and the standards set in changing the once-abandoned and
by the organization. Ever since the Park opened forgotten site of the Grand Palace into
lots of local and foreign a very welcoming and stupendous
“The Unity Park, indeed, tourists have been flocking place in the African capital.
remains a lesson to all of us to this wonderful site, whose
that we can do anything in a
short period of time with good advantages are two folds: Now in its eight years successful
spirit and shared vision, and income generation and operations at different branches,
also a platform to develop good image- building benefits. Mama’s Kitchen chain has currently
working- culture” said Girma, They all are witnessing the created job opportunities for over
adding that all Ethiopians have beauty and convenience of 360 professionals in the hospitality
moral obligation to contribute the place that was once a industry. The kitchen staffs at Mama’s
significantly to national image place to bury and kill citizens Kitchen are amongst the finest,
for mostly political reasons.
bringing with them experiences from
Upon closing his remarks, cooking in five star hotels.
Girma underpinned that

Abyssinia Business Nework የካቲት ወር 2012 February 2020 09

Exclusive

Total Ethiopia

Keeps Energizing

By Aklile Tsige

Total, a French multinational integrated oil and gas company, was founded in 1924 and one of the seven
“Super major” oil companies in the world. Its businesses cover the entire oil and gas chain, from crude oil
and natural gas exploration and production to power generation, transportation, refining, petroleum product
marketing, and international crude oil and product trading. Total is also a large scale chemicals manufacturer.

Total has its head office in the Tour Total in La Défense district in Courbevoie, west of Paris. Operating in more
than 130 countries worldwide, Total Group has been engaged in exploration, production and distribution of
refined oil, petrochemicals fuel for aviation, lubricants and various energy products.

Ready to celebrate its 70-year-journey in Ethiopia, Total Group has decided to select Ethiopia to launch its new
lubricants package in Africa as the first market. The launching event was held on Feb 20, 2020 at Hayat Regency
Hotel. Aklile Tsige compiles the historical background of the Group while speaking to Thibault Lesueur, Total
Ethiopia Managing Director on company’s operation in Ethiopia and a newly launched lubricants package.

10 Abyssinia Business Nework የካቲት ወር 2012 February 2020

In 1954, CFP introduced its

downstream product Total

brand of gasoline in the African

continent and Europe. In 1980,

Total Petroleum (North America)

Ltd., a company controlled 50% by

CFP, bought the American refining

and marketing assets of Vickers

Petroleum as part of a sell-off by

Esmark of its energy holdings.

This purchase gave Total refining

capacity, transportation, and a

network of 350 service stations in

20 states.

Thibault Lesueur The company renamed itself
Total Ethiopia Managing Director Total CFP in 1985, to build on the
popularity of its gasoline brand.
Throwback Later in 1991, the name was
The company was founded after The company during the 1930s changed to Total, when it became
World War I, when then French was engaged in exploration and a public company listed on the
President Raymond Poincare rejected production, primarily from the New York Stock Exchange. The
the idea of forming a partnership with Middle East. Its first refinery French government, who used to
Royal Dutch Shell in favor of creating began operating in Normandy in control more than 30 percent of the
an entirely French oil company. 1933. After World War II, CFP company’s stock in 1991, reduced
At Poincaré’s behest, Col. Ernest engaged in oil exploration in its stake in the firm to less than 1
Mercier with the support of ninety Venezuela, Canada, and Africa percent by 1996. In the time period
banks and companies founded Total while pursuing energy sources between 1990 and 1994, foreign
on 28 March 1924, as the Compagnie within France. Exploration in ownership of the firm increased
française des pétroles (CFP), literally Algeria, then a French colony, from 23 per cent to 44 per cent.
the “French Petroleum Company”. began in 1946, with Algeria
Petroleum was seen as vital in the becoming a leading source of oil Meanwhile, Total continued
case of a new war with Germany. in the 1950s. to expand its retail presence in
North America under several
brand names. In 1989, Denver
Colorado, based Total Petroleum,
Total CFP’s North American unit,
purchased 125 Road Runner retail
locations from Texarkana Texas-
based Truman Arnold Companies.
By 1993, Total Petroleum was
operating 2,600 retail stores
under the Vickers, Apco, Road
Runner, and Total brands.
That year, the company began
remodeling and rebranding all of
its North American gasoline and

Abyssinia Business Nework የካቲት ወር 2012 February 2020 11

convenience stores to use the Total
name. Only four years later, Total sold
its North American refining and retail
operations to Ultramar Diamond
Shamrock for $400 million in stock
and $414 million in assumed debt.

After Total’s takeover of Petrofina of
Belgium in 1999, it became known
as Total Fina. Afterwards it also
acquired Elf Aquitaine. First named
TotalFinaElf after the merger in 2000,
it was later renamed back to Total on
6 May 2003. During that rebranding,
the current globe logo was unveiled.

In May 2006, Saudi Aramco and renewable energy and electricity ensuring that strategy incorporates
TOTAL signed a MOU to develop the the 2 °C global warming scenario,
Jubail Refinery and Petrochemical businesses.
project in Saudi Arabia which targeted Public Affairs, Audit, Research &
400,000 barrels per day (bpd). On 21
September 2008, the two companies In August 2017, Total announced Development, the Chief Digital
officially established a joint venture the acquisition of Maersk Oil Officer and the Senior Vice
called SAUDI ARAMCO TOTAL for $7.45 billion in a share and President Technology).
Refining and Petrochemical Company
(SATORP)- in which a 62.5% stake debt transaction. This deal will
was held by Saudi Aramco and the position Total as the second As of 31 December 2014, Total S.A.
balance 37.5% held by TOTAL. had 903 subsidiaries consolidated
operator in the North Sea.
In February 2015, Total unveiled into the group results, together
plans to cut 180 jobs in the United
Kingdom, reduce refinery capacity In 2016 Total also created two with affiliate investments and joint
and slow spending on North Sea new corporate divisions: namely ventures, mostly in LPG. In addition
fields after it fell to a $5.7bn final- People & Social Responsibility Total had other equity holdings
quarter loss. The company said it (Human Resources; Health, amounting to about 3bn Euros,
would also sell off $5bn worth of Safety & Environment; the treated as investments and was
assets worldwide and cut exploration Security Division; and a new involved in a number of significant
costs by 30%. Civil Society Engagement joint ventures, mostly relating
Division) and Strategy & to LPG and LNG exploration,
In June 2016, Total signed a $224M Innovation (Strategy & Climate production and shipping.
deal to buy Lampiris, the third largest
Belgian supplier of gas and renewable Division, responsible for
energy to expand its gas and power
distribution activities. In July 2016, 2 °C global
Total agreed to buy French battery
maker SAFT Group. in a $1.1bn warming scenario
deal, to boost its development in

12 Abyssinia Business Nework የካቲት ወር 2012 February 2020

Photo by Spotlight communication

Total Ethiopia

Total Ethiopia has been contributing technical services. The company and communities as our
a lot in the country’s energy supply actively assists numerous non- partners.”
for the past seven decades. As a profit organizations that enhance
petroleum product distribution communities and truly make a “Now the Group is turning
company, it developed its activities difference in people’s lives. itself to a full energy player,
by acquiring the Mobil Oil East taking into account the global
Africa assets in 2006. Today the “We are extremely proud of the climate change, and help its
company operates with more than company we’ve become today. customers and stakeholders
160 service stations and five depots It has been the dedication of our get the right answers for their
across the country, of which four are team members that has allowed needs.”
aviation depots, and a Fuels and LPG Total Group to grow into a trusted
depot, the Dukem depot which has a provider for your home and your Moreover, the Managing
total storage capacity of eight million businesses.” Lesueur said. Director stressed that the
liters. company pursues quality
The mission of the company is of and safety in all that we do
According to Thibault Lesueur, Total multifaceted. He said, “We are by optimizing our processes
Ethiopia Managing Director, Total always advancing to improve the to provide the best services
Group has always been committed way we work, enhance our services, possible, and safety in all that
to supporting needs within the local and enrich the communities in they do. They maintain the
area to make various communities which we live and work, we also highest standards to ensure our
a better place to live in addition to recognize the importance of our services are provided in a safe
providing a broad range of expert employees, customers, suppliers manner.

Abyssinia Business Nework የካቲት ወር 2012 February 2020 13

Photo by Spotlight communication

The Group has, indeed, has established facilities for its share is safety. The second most
customers to recharge their electric important issue is professionalism.
engaged in multi-energy cars in the company’s stations. Whatever we do here at Total we
do it to the standard. It‘s a business
supply and activities such as oil “ Now the Group is turning itself standard.”
to a full energy player, taking
and gas exploration, trading, into account the global climate In supporting environmental
change, and help its customers and protection efforts, the company has
transportation, refining, stakeholders get the right answers decided to totally quit the use of
for their needs.”, Lesueur said. plastic bags and cups as packaging
downstream activity which materials, and to substitute them with
Some four years back the Group a more environmentally-friendly ones.
is the marketing of fuel, and bought a battery producer called As far as company’s strategy is
SAFT to keep going in the concerned, the Managing Director
petrochemicals that are used renewable energy supply. It has indicated that the Group is not only a
also made a joint venture business mono-energy supplier or an actor; it
for making plastics. It also does deal with PSA, a French-based car takes into account the footsteps of its
manufacturer to produce together activities to protect the environment,
the marketing of lubricants for batteries. and people’s mobility. Furthermore
the company is now becoming digital
all types of mechanical engines With regards to safety and standard, to be more competitive in the global
the Managing Director said, “The market.
and other products. very key thing all of our employees

Very recently the Group has
engaged itself in supplying new
energies. These are the ones that
are environmentally-friendly
and emit less or no carbon.
These include solar panel which
has now become very effective
in supporting environmental
protection efforts worldwide.
Most importantly, Total Group

14 Abyssinia Business Nework የካቲት ወር 2012 February 2020

“There is no sufficient capacity of “Now the Group its contribution to community
oil and gas transportation; there is development and discharging its
no sufficient capacity of storage; is turning itself social responsibility across the
there’s no sufficient capacity of to a full energy country. It’s a responsible citizen
sales and service-providing stations player, taking company that is actively promoting
throughout the country. This has into account the road safety, fighting against malaria,
to be improved” global climate ensuring product quality and
change, and help developing renewable energies such
Total Ethiopia, in fact, is the first its customers and as solar energy.
energy company which started to stakeholders get
implement On Board Computer/ the right answers It also motivates young entrepreneurs
OBC/ on fuel trucks and company through “Total Startupper of the
owned vehicles. Explaining the ”for their needs. Year” program with the objective
use of this OBC, Lesueur said, to identify and reward the best
“For each and every of our trucks innovative and sustainable projects
that are involved in gas and oil developed by young Ethiopian
transportation service, we have entrepreneurs.
installed a device that is connected
to the OBC as GPS, and provides Over the past seventy years of service
information on the location, time in Ethiopia, the Total Group has
and speed of the trucks to see if never stopped its operation even for
the trucks or the vehicles are being a single day despite inconveniences
used properly or not.” and unfavorable business and socio-
political landscapes. According
Total Ethiopia is famous for to the Managing Director, as any

Abyssinia Business Nework የካቲት ወር 2012 February 2020 15

company, Total here in Ethiopia “There is no Total is reaffirming its commitment to
has also faced challenges in sufficient a better energy as this new innovative
its business operation, adding capacity of & premium design incorporates anti-
that slow down of the global oil and gas counterfeiting features and improved
and national economy, less labels and utility. These changes will
fuel consumption and some transportation; contribute to improve Total brand
monetary issues like shortage there is no value and will impact all the affiliates
of foreign currency have been sufficient of the Group.
major bottlenecks. capacity of
According to Thibault Lesueur, Total
Lesueur said, “There is no storage; there’s Ethiopia Managing Director, The
sufficient capacity of oil and no sufficient main features and benefits of the new
gas transportation; there dynamic lubricant packs are:
is no sufficient capacity of capacity of sales
storage; there’s no sufficient and service-
capacity of sales and service- providing
providing stations throughout stations
the country. This has to be
improved” throughout the
country. This has
The Director further stated that to be improved”
very recently the Ethiopian
Government has shown interest also aim to create an optimized,
in establishing a regulatory simpler and more compelling range
organ for the sector-Ethiopian for all Total-branded automotive
Energy Authority, adding that lubricants.
this undoubtedly, address the
challenges the sector is facing, The new label design is inspired by
and promote some standards the dashboard of a car. This concept
such as the use of On Board was validated by a major market
Computer and adjustment on study as innovative and customer-
price margin. centric, helping the product stand out
significantly from its competitors.
On Feb 20, 2020 Total Group
selected Ethiopia to launch its
new lubricants package in the
African continent as the first
market. This new dynamic
lubricant pack portrays
performance at first sight; a
rejuvenated, simpler and more
compelling range for all Total-
branded automotive lubricants.
Besides creating a premium
and modernized design of
our labels and cans, the new
dynamic lubricant packs

16 Abyssinia Business Nework የካቲት ወር 2012 February 2020

Photo by Spotlight communication

• New side handle that makes the can • Product name with the the first affiliate to introduce its new
handy and easier to carry. background of the range’s lubricant package to its esteemed
• New innovative & premium design color. customers. As a major energy company,
that captures modernity and allows • Product’s benefits logo. he continued, Total is honored to serve
easier pouring. and support Ethiopia energy needs in
• Enhanced product recovery with a The Managing Director noted its quest for development in the years
more performant can. that Total Ethiopia S.C is to come. “Total Ethiopia will soon
• Strong brand impact & immediate pleased and honored to be celebrate its seventy years’ of service
product line visibility. in the country.” Thibault Lesueur
• QR code that authenticates the indicated in his closing remark.
product.
• New educational pictograms that
highlight products’ uses and benefits.
• Enlarged viscosity grade

Abyssinia Business Nework የካቲት ወር 2012 February 2020 17

EthioLpeaitahenr
Sector Still Untapped

By Samuel Tekleyesus

By Samuel Tekleyesus business. The Ethiopian leather comparative advantages owing
industry is relatively an older to its abundant and available raw
Leather manufacturing is one of industry with more than 90 years of materials, highly disciplined
the oldest industries globally and involvement in processing leather workforce and cheap prices.
particularly in Ethiopia which and producing leather products. Well-known that the country
has remained and sprung forward Ethiopia’s leather and footwear boasts the largest livestock
as an economically important industry has significant international production in Africa, and the
sector in terms of engaging
citizens intensively and in export

18 Abyssinia Business Nework የካቲት ወር 2012 February 2020

10th largest in the world. Ethiopian Ethiopia annually produces garments, stitched upholstery,
leather and leather products industry 2.7 million hides, 8.1 million backpacks, purses, industrial gloves
encompasses tanning and dressing sheepskins and 7.5 million and finished leather.
of leather, manufacture of luggage goatskins. This comparative
and hand bags, and manufacture advantage is further underlined Despite the huge and diversified
of footwear’s. According to the by the fact that the costs of livestock population available for
Ethiopian Investment Commission raw hides and skins constitute the leather sector; the industry has
/EIC/, The firms in the industry on average 55-60% of the not developed as it is expected.
produce products such as leather production of semi processed Yet, it is showing a great progress
shoes and boots, canvas and rubber leather. Ethiopia’s leather and on the phase of producing highly
shoes, plastic footwear’s, leather leather product sector produce value added products. At the end of
upper and lining, leather sole, semi a range of products from semi- the GTP-II,the leather industry sub-
processed skins, leather garment, processed leather in various sector expected to earn 800 million
plastic sole and crust hides, and forms to processed leathers USD, considering that the leather
wet blue hides. including shoe uppers, leather manufacturing industries could

Abyssinia Business Nework የካቲት ወር 2012 February 2020 19

100%
enhance their productivity and compete to sell
their products in the global market by exerting

of sheep skintheir full capacity.

According to the Ethiopian Leather Industries
Institute, there are about 1500 registered private
traders dealing in raw hides and skins an important
force in the industry through the operation of rural
operation network supplying raw hides and skins
through long chain (small collectors, small traders,
middle and heavy suppliers) to the tanneries in the
country. Almost 100% of sheep skin is supplied in
wet salted. About 75% of goats’ skin supplied in
wet salted and the rest 25% air dried. With regard
to the preservation method of cattle hide 10%
fresh, 60% are in wet salted and 30% air dried.
Around 8.5 million pieces sheep skin, 7 million
pieces goat skin and 1.2 million pieces hides are
supplied to the tanneries per annum. It has been
estimated to recover 96%, 93% and 36% of sheep
skin, goat skin and cattle hides respectively and
the rest being uncollected or consumed by rural
tanners.

There are 32 tanneries nationwide converting and three glove factories producing leather
hides and skin to different types of finished leather. gloves, garments, bags and different kinds of
This sector is relatively at its mature stage and has leather products. This industry, particularly
successfully moved to the production and export glove production is an emerging segment
of higher value-added and fully processed finished and appears to be more promising.
leather. There is a possibility of producing up to
500 million square feet of finished leather per year. Ethiopian footwear factories produce men’s
casual shoes and children’s shoe-uppers
Footwear Industry is at an infant stage of made from pure leather. Additionally, the
development in the country only with two factories factories:
before 1991 but at present it has reached 24 medium
and large scale footwear manufacturers. The • Sell directly to overseas importers/
production capacity of shoe factories including wholesalers, or to direct buying offices
production of Small and Micro enterprises rose
to 15 million pairs per year. Therefore, the shoe
industry is an emerging and promising industry in
the country.

Besides, there are 23 garments and goods factories

20 Abyssinia Business Nework የካቲት ወር 2012 February 2020

• Facilitate the production The Ethiopian footwear industry
and export of footwear under the produces shoes that are globally
private labels of department stores, competitive in terms of both quality
boutiques, shoe retail chains and and price. Due focus is given to
mail-order houses; maintaining the quality of the
hides and skins, leather and leather
• Source out from Ethiopia products for export. Ethiopia has
and other nations in East Africa and sustained to be the leader in its
re-export livestock resources in Africa which
proves the availability of a huge
• Facilitate the production potential for the country’s leather
and export of internationally well- industry.
known brands under contract
Abyssinia Business Nework የካቲት ወር 2012 February 2020 21

Sheep and goat skin represent the bulk of
Ethiopian leather production. The country
is known in the international leather market
for its superior qualities of sheep skin,
acknowledged as being the best in the world.
The Ethiopian sheep skins are sought for
high class and high value glove leather and
the goat skin are equally acknowledged to
be the finest for suede making for garments
and footwear.

The international leather market has coined
special names for these two varieties of skin
after two local places - Selallie and Bati.
The sheep skins are referred to as Selallie
Genuine and the goat skin Bati Genuine
which are offered at premium prices over
all others. The sheepskin in particular has
a reputation for its fiber strength and other
qualities attractive to the international
market which is best suitable for dress
gloving and shoe upper. Bati Genuine are
mainly used for shoe upper and leather
goods. Cow hides are mainly used for shoe
uppers.

Ethiopian leather products have been
exported to markets in Europe (especially
Italy and the UK), America, Canada, China,
Japan, India and other Far Eastern countries
and the Middle East. Leather is also exported
to other African countries including Nigeria
and Uganda. The government of Ethiopia
also considered the leather industry a
priority sector for growth. Like in other
priority sector all form of investment and
export incentives are applicable to the
leather and leather product industry.

22 Abyssinia Business Nework የካቲት ወር 2012 February 2020

The export performance till now is found to be low
due to limited managerial capacity in the sub-sector
to compete in the global market, lack of application of
better technology, absence of product diversification,
confined market destination. Despite its long
pedigree, the leather products industry in Ethiopia has
been struggling with limited processing capacity that
explains not just the inability of local leather goods
producers to penetrate the export market, but also
their failure to withstand competition from imports.

Currently, the government is processing all the
preliminary activities to construct Leather City at
Modjo. Ethiopia has a potentiality to invest more
and expand in leather industry which substantially is
because of raw hide and skin exports.

The trade of manufacture and export of leather
footwear, leather goods and leather garments is one
of the promising sectors for the economic and social
growth of Ethiopia through foreign direct investment
(FDI) or through Joint venture.

Ethiopian
leather

Sol Image

Abyssinia Business Nework የካቲት ወር 2012 February 2020 23

Banquet Hall –

24 Abyssinia Business Nework የካቲት ወር 2012 February 2020

Unity Park

Abyssinia Business Nework የካቲት ወር 2012 February 2020

GLOBAL FDI FLOWS FLAT IN 2019

MODERATE INCREASE EXPECTED IN 2020

By Staff Writer

Global foreign direct investment (FDI) remained flat in 2019, at Global FDI flows1 remained flat in 2019,
$1.39 trillion, a 1% decline from a revised $1.41 trillion in 2018. at an estimated $1.39 trillion, down 1%
This is against the backdrop of weaker macroeconomic performance from a revised $1.41 trillion in 2018.
and policy uncertainty for investors, including trade tensions. Flows declined in Europe and developing
Asia, remained unchanged in North
• The underlying FDI trend, which removes the volatility caused America and increased in Africa, Latin
by one-off transactions and intra-firm financial flows, was up 5% America and the Caribbean and transition
(in line with projections in the World Investment Report 2019) – economies (figure 2). The impact of the
a marginal change representing a continuation of the stagnation 2017 US tax reform which reduced US
observed over the decade. outward FDI flows and global FDI in 2018
appear to have diminished in 2019.
• FDI flows to developed countries remained at a historically low
level, decreasing by a further 6% to an estimated $643 billion. FDI Developing economies continue to absorb
to the European Union (EU) fell by 15% to $305 billion, while more than half of global FDI flows and
flows to the United States remained stable at $251 billion. half of the top 10 largest recipients of FDI
fall in this category (figure 3). The United
Flows to developing economies remained unchanged at an States remained the largest recipient of
estimated $695 billion. FDI increased by 16% in Latin America FDI, attracting $251 billion in inflows,
and the Caribbean and 3% in Africa. Despite a decline of 6%, flows followed by China with flows of $140
to developing Asia continued to account for one-third of global FDI billion and Singapore with $110 billion.
in 2019. Flows to transition economies rose by two thirds to $57
billion. FDI to the
European
• Trends in selected economies: Union(EU)
fell by 15%
° FDI in the United Kingdom down 6% as Brexit unfolds.
° Hong Kong, China divestments cause a 48% FDI decline to $305
billion
among turbulence.
° Singapore up 42% in a buoyant ASEAN region.
° Zero-growth of flows to both the United States and China.
° Brazil up 26% at the start of a privatization programme.
° German inflows triple as MNEs extend loans to foreign affiliates

in a year of slow growth.

• Looking ahead, UNCTAD expects FDI flows to rise marginally in
2020 on the back of further modest growth of the world economy.
Corporate profits are expected to remain high and signs of waning
trade tensions emerge. However, the decrease of announced
greenfield projects by 22% – an indicator of future trends, high
geopolitical risks and concerns about a further shift towards
protectionist policies temper expectations.

26 Abyssinia Business Nework የካቲት ወር 2012 February 2020

Significant variations

among developed economies

FDI flows to developed economies fell
by 6% to an estimated $643 billion from
their revised $683 billion in 2018. FDI
remained at a historically low-level, at half
of their peak in 2007. Equity investment
flows exhibit sluggishness. Cross-border
M&As targeting the region registered
a sharp decrease in value (40% to $411
billion). The falling value of announced
greenfield projects (-12% to $329 billion)
also points to weakness in (planned) capital
expenditures of affiliates of multinational
enterprises (MNEs) in these markets.

The trend for developed economies was getting Image
conditioned by FDI dynamics in the
European Union, where inflows declined FDI flows to North America remained flat at $298 billion.
by 15% to an estimated $305 billion. Flows to the United States decreased by only 1% to an
During 2019, a number of EU countries estimated $251 billion. While investment in the United
experienced strong volatility in FDI flows States from Canada and the EU declined by 24% and 6%
compared to the previous year. FDI to the respectively, there was increase of investment from Japan
Netherlands fell by 98% (from $114 billion and Australia. Germany, Japan and the Netherlands were
to $1.9 billion), in part due to a large the largest investors in the United States. In Canada, flows
divestment (a $36 billion IPO of a foreign increased by 8% to $47 billion mainly due to intra-company
affiliate of Nasper (South Africa)). In loans.
contrast, flows to Ireland rose to $37 billion
from -$28 billion in 2018, mainly due to FDI flows to other developed countries fell by 30% to $70
the largest cross-border deal recorded in billion. The decline of cross-border M&A sales in Australia
2019 (Takeda Pharmaceutical Co Ltd of contributed to the decrease of FDI inflows by 42% to $39
Japan acquired the share capital of Shire billion. Flows to Israel declined also, by 28% to an estimated
PLC for $61 billion). $15 billion, while FDI to Japan rose moderately by 9% to $11
billion.
Flows to the United Kingdom declined by
6% to an estimated $61 billion, mainly due Abyssinia Business Nework የካቲት ወር 2012 February 2020 27
to a lack of large deals targeting the country.
The value of cross-border M&As halved in
2019 from the high level of 2018. Inflows
to Spain declined from $45 billion to $6
billion, partly due to debt restructuring in
foreign affiliates. In contrast, FDI flows to
France and Germany rose to $52 billion and
$40 billion respectively, from $37 billion
and $12 billion in 2018, mainly due to an
increase in intra-company loans to foreign
affiliates

FDI flows to UNCTAD
developing
economies
remained stable

FDI flows to developing economies
remained stable at an estimated
$695 billion. Latin America and the
Caribbean saw an increase of 16%,
with growth concentrated in South
America. Africa continued to register
a modest rise (+3%) while flows to
developing Asia fell by 6%.

FDI flows into developing Asia South Asia recorded a 10% getting Image
reached an estimated $473 billion in increase in FDI to $60 billion. The
2019. The overall decline was driven growth was driven by India, with FDI to Latin America and the
mostly by a 21% drop in investment a 16% increase in inflows to an Caribbean increased by 16% in 2019,
in East Asia. Investment to Hong estimated $49 billion. The majority reaching an estimated $170 billion. In
Kong, China almost halved to $55 went into services industries, South America, flows grew by 20%
billion as divestments continued including information technology. to an estimated $119 billion, with
through the year. Flows to the Inflows into Bangladesh and decreases in Argentina and Ecuador
Republic of Korea also saw a decline Pakistan declined by 6% and 20%, offset by growing flows to Brazil,
of 46% to $7.8 billion, attributed to respectively, to $3.4 billion and Chile, Peru and Colombia. Brazil
trade tensions and investment policy $1.9 billion. registered a 26% increase to $75
changes. Inflows to China remained billion, partly driven by the country’s
stable at $140 billion. In West Asia, FDI flows declined privatization program launched in
by 16% to an estimated $25 billion, July as part of the administration’s
South-East Asia continued to be the from $30 billion in 2018. Flows to efforts to jumpstart the economy.
region’s growth engine; FDI rose Turkey cooled off from $13 billion The first of these privatizations
to an estimated $177 billion, a 19% in 2018 to $8.3 billion due to involved a gas distribution company
increase from 2018. Singapore, the economic headwinds. Investment Transportadora Associada de Gas
biggest FDI host country in the region, in Saudi Arabia increased by 9% bought by a consortium of investors
continued to grow in 2019 – by 42% to an estimated $4.6 billion with led by Engie (France) for almost
to $110 billion, driven by deals in some deals outside the oil and gas $8.7 billion. In 2020, divestments
the information and communication sector. For example, the largest of subsidiaries of State companies
sector. Investments into Indonesia M&A deal in the country was in are expected to gain pace; the
rose 12% to $24 billion with metals, with Tronox Ltd (United privatization of large companies like
significant flows going into wholesale States) acquiring part of National Electrobras, Latin America’s largest
and retail trade (including the digital Titanium (Saudi Arabia) for $2.2 power utility, and Telebras is likely to
economy) and manufacturing. billion. attract further FDI. Preliminary data

28 Abyssinia Business Nework የካቲት ወር 2012 February 2020

on announced greenfield investments in the FDI flows to
country support this outlook with the value developing
of projects more than doubling compared economies
to 2018, especially in the renewable remained stable
energy and the automotive industries. In at an estimated
Argentina, a deepening currency crisis
and the application of restrictive measures $695 billion
on international operations have led to a
halving of inflows (to $6.3 billion). FDI
to Chile, Peru and Colombia all increased
significantly, supported by economic
growth above the regional average and
new public investments into infrastructure
and mining (Peru and Chile). Social unrest
and political turmoil late in 2019 dampen
expectations for inflows in 2020.

Flows to Central America grew by 4% to
an estimated $46 billion. FDI to Mexico
increased by 3% to an estimated $35
billion; the new trade agreement USMCA
lifted expectations for easier economic
relations. Flows to Panama and Costa
Rica, the two other main destinations in
the region, grew to $6.5 and $2.3 billion
respectively. In Panama, most of the
increase can be attributed to increased
intra-company loans. In Costa Rica more
than half of flows went into the free trade
zones.

In the Caribbean (excluding offshore
financial centres), inflows grew by 49% to
an estimated $4.2 billion led by growing
investments in the Dominican Republic
where FDI reached an estimated $2.7
billion and in Trinidad and Tobago where
inflows turned positive to an estimated
$600 million.

FDI flows to Africa amounted to an getting Image
estimated $49 billion – an increase of 3%.
Persistent global economic uncertainty and
the slow pace of reforms seeking to address
structural productivity bottlenecks in many
economies continue to hamper investment

Abyssinia Business Nework የካቲት ወር 2012 February 2020 29

in the continent. Egypt remained the China was the
largest FDI recipient in Africa with a 5% largest investor
increase in inflows to $8.5 billion. The in Ethiopia in 2019,
country’s efforts to implement economic accounting for 60%
reforms have resulted in strengthened of newly approved
investor confidence. While FDI to the
country was still driven by the oil and FDI projects.
gas sector, major investments in the
non-oil economy emerged, notably in getting Image
telecommunications, real estate and
tourism. Despite the increase in Egypt, After two years of low inflows, FDI to the transition economies
FDI to North Africa declined by 11% to started a rebound in 2019, growing by 65%, to an estimated $57
$14 billion, due to a significant (45%) billion. The pick-up was driven partly by an expectation of higher
slowdown in flows to Morocco ($2 economic growth in the region in 2020 and more stable prices for
billion from $3.6 billion in 2018). natural resources. In the Russian Federation, inflows more than
doubled to $33 billion. Both equity investment and reinvested
In contrast, FDI to Southern Africa earnings rose substantially as investors’ confidence increased. As
increased by 37% to $5.5 billion a result of the doubling of FDI into the Russian Federation, the
mainly due to the slowdown in net inflows of the Commonwealth of Independent States (CIS) and
divestment from Angola. South Africa Georgia reached $49 billion, 82% up from 2018. Flows to South-
consolidated last year’s recovery with East Europe remained unchanged at $7.4 billion. Flows to Serbia
inflows remaining almost constant at a grew by 6%, to $4.4 billion. In contrast with buoyant FDI inflows,
little more than $5 billion. In addition the cross-border M&A sales of transition economies fell by 46%,
to intra-company transfers by existing to $1.4 billion only, their lowest level since 2015.
investors, investment to the country was
led by M&A deals in business services FDI prospects for transition economies in 2020 remain subdued,
and petroleum refining. FDI flows to as suggested by the decline in the value of announced greenfield
East Africa remained steady totaling projects in 2019 which dropped by 14%, to $44 billion. In addition,
$8.8 billion. Flows to Ethiopia, Africa’s uncertainties remain high in terms of the policy environment for
fastest growing economy, slowed down FDI in various key economies of the region, including the Russian
by a quarter to $2.5 billion. China was Federation.
the largest investor in Ethiopia in 2019,
accounting for 60% of newly approved
FDI projects. Inflows to Uganda
increased by almost 50% to $2 billion due
to the continuation of the development of
major oil fields and an international oil
pipeline. Flows to West Africa increased
by 17% to an estimated $11 billion as
investment surged in Nigeria by 71%
to $3.4 billion. FDI to the continent’s
largest economy was buoyed by resource
seeking inflows in the oil and gas sector.
However, the development of a $600
million steel plant in Nigeria’s Kaduna
state offers some evidence of investment
diversification, a long-standing policy
objective. FDI to Central Africa rose by
6% to $9.3 billion, with the resource-
oriented profile of investment persisting.

30 Abyssinia Business Nework የካቲት ወር 2012 February 2020

getting Image M&As Looking ahead: growth
with significant risks
Cross-border
almost halved FDI flows are still expected to rise moderately
in 2020, as current projections show the global
Cross-border M&As decreased by 40% in 2019 to economy to improve somewhat from its
$490 billion – the lowest level since 2014 (figure weakest performance since the global financial
4). Slowed down by sluggish Eurozone growth crisis in 2009. GDP growth, gross fixed capital
and Brexit, European M&A sales halved to $190 formation and trade are projected to rise, both at
billion. Deals targeting United States companies the global level and, especially, in several large
remained significant – accounting for 31% of total emerging markets. Such an improvement in
M&As. The fall in global cross-border M&As macroeconomic conditions could prompt MNEs
sales was deepest in the services sector (-56% to to resume investments in productive assets, given
$207 billion), followed by manufacturing (-19%, also their easy access to cheap money, the fact
to $249 billion) and primary sector (-14%, to $34 that corporate profits are expected to remain solid
billion). In particular, sales of assets related to in 2020, and hopes for waning trade tensions
financial and insurance activities and chemicals between the United States and China.
fell sharply. The decline in M&A values was
driven also by a lower number of megadeals. In However, significant risks persist, including
2019, there were 30 megadeals above $5 billion high debt accumulation among emerging and
compared to 39 in 2018. developing economies, geopolitical risks and
concerns about a further shift towards protectionist
The decline of cross-border M&As in 2019 policies. In addition, in 2019, greenfield project
(-40%) was much stronger than the 14% decrease announcements an indicator of future trends
in total M&A activity (including domestic deals) have slowed down.
worldwide, continuing the trend of the last few
years of relative impopularity of cross-border source UNCTAD
expansions and consolidations through deals.
Abyssinia Business Nework የካቲት ወር 2012 February 2020 31

Logistics challenges Leone, Eritrea and Zimbabwe were
at the bottom 4.

facing eCommerce In most African countries, the result
of the poor road infrastructure is
in Africa heavy traffic jams that lead to delayed
deliveries, canceled orders for the on-
By Josephine Wawira demand services and subsequently
loss of revenue. Alternative modes
According to Euromonitor, the Unsatisfactory National of transport have therefore come
world’s fastest growing economies Address Systems and Transport into play in some markets like
by 2030 will be in Africa. This Infrastructure Kenya and Nigeria, with the use
consequently makes the continent of easy to navigate motorcycles,
the next big e-commerce market. One of the biggest logistics’ popularly known as Bodabodas.
And as this positive narrative hurdles holding back the industry With about 1.2 million motorcycles
continues to place Africa as a top is the lack of proper national in the passenger transport business,
investment destination, the need address systems in most African Kenyan ecommerce companies have
for advanced logistics systems has countries. This, coupled by poor strived to tap into this market by
become inevitable. The growth road networks, make it even harder using Bodabodas to swiftly deliver
of e-commerce will significantly to conveniently deliver products products especially within busy
depend on the quality and efficiency to customers. Consequently, cities.
of logistics networks; from intra and companies have had to rely
cross trade to financial transactions on fairly descriptive addresses “There are huge opportunities for
in payment of goods and services. and landmarks provided by the logistics to grow e-commerce, but
customers during the initial stages few established players exist in the
When writing the African of the online purchase process. The market,” notes Apoorva Kumar,
e-commerce story, I often leap at the delivery persons are also required Jumia’s SVP of Logistics. Present
chance to explore only the enviable to keep in constant contact with in 14 African countries,Jumia is
milestones the continent has made. clients when delivering products, one of the ecommerce players
Nevertheless, there still exist to receive further directions while building logistics and fulfilment
formidable challenges especially in en-route. infrastructures to ease delivery of
logistics, a vital constituent of the products to consumers using both
industry. The African Development While generally Africa’s vehicles and bodabodas.
Bank, in its 2019 African Economic infrastructure lags behind that of
Outlook, notes that “trade costs its counterparts including America Providentially, technology has been
due to poorly functioning logistics and Europe, it is worth of note that a boon to the logistics industry.
markets may be a greater barrier each country has its own value In Nigeria and Kenya, Jumia is
to trade than tariffs and nontariff proposition. In 2018, the World running a well-established system
barriers”. This side of the story Bank’s Logistics Performance using Machine Learning, relying
must also be told; if we are to find Index placed South Africa, Kenya, on GPS enabled delivery apps. The
sustainable solutions to what could Rwanda, and Côte d’Ivoire as the coordinates collected in the first
be the gateway to growing Africa’s top 4 best performing countries delivery are then registered and used
e-commerce by leaps and bounds. in Africa, while Somalia, Sierra in making a logistics network for
future conveyance.

In Rwanda, companies like Zipline
are leading the way in commercial

32 Abyssinia Business Nework የካቲት ወር 2012 February 2020

getting Image

drone deliveries. While initially What Then, Does the Future of the pie among international
focused on delivering blood to Hold? investors.
remote health centers that are Data by logistics consulting firm
otherwise difficult to reach fast due to Knight Frank, shows that the cost Therefore, for e-commerce
Rwanda’s hilly terrain; it is expected of transportation represents 50% companies in Africa to achieve
that Zipline’s drones will in future to 75% of the retail price of the sustainable bottom-line growth,
be used in other sectors including goods. This alone, underpins the there needs to occur more tech-
e-commerce. Back in Kenya, Astral demand for long-term strategies to empowered handshakes between
Aerial Solutions is using drones the logistics challenges in Africa. multiple service providers across
for among other services, last mile markets. Governments have
deliveries. The company aims to, in From delayed deliveries between the responsibility to create one-
its words, “open up Kenya’s hard to local destinations to sluggish window-policies that empower
reach regions to new and exciting growth of cross-border trade, the digital payment solutions as
business opportunities”. effects are being felt across the well as logistics infrastructure
board. Modern online retailing including road networks, air
The possibilities for a better is headed towards pre-orders, cargo handling systems and
future in logistics, in my view, are requiring mature infrastructure warehouses among others.
endless! And as Apoorva reiterates, for both small and medium
companies cannot solely build a businesses. This will help Similarly, e-commerce and
successful logistics system. “It meet the packaging, storage, logistics powerhouses like Jumia
requires integrating various systems distribution, freight and last-mile- should commit to empower
and partners to create a big enough delivery requirements. Though more upcoming entrepreneurs.
network to serve the growing needs challenging, Africa is a land full They must also use their leading
of the e-commerce consumers,” he of commercial opportunities; positions to continue paving the
says, calling for both private and causing a scramble for a piece way for economic integration in
public partnerships to this endeavor. Africa.

Abyssinia Business Nework የካቲት ወር 2012 February 2020 33

Importance of innovation and

digitalization

in growing tourism

By Josephine Wawira “Together we can set a vision
that considers tourism as a
Digital transformation has solemnly policy priority, a knowledge
grasped the tourism industry, creator and innovator, and a
increasinglyaltering operations and sector of maximum value for
customer relations in a sector that
contributed 3.7% to Kenya’s GDP in all”
2017 and forecast to rise by 5.2% in
2018. The industry is experiencing a “Together we can set a vision providers,in a bid to drive
great deal of innovative disruption, that considers tourism as a sales, revenue and operational
with trends such as Virtual Reality policy priority, a knowledge efficiency,are upping their
(VR), Artificial Intelligence (AI), creator and innovator, and a efforts to give top-notch
and mobile bookings and payments sector of maximum value for customer experience by
taking center stage. Expectations all”, said Mr. Pololikashvili, embracing the digital
from tourists have been set high, and making clear his vision to create transformation.
relevant stakeholders continue to adopt an ecosystem of government
to the technological changes in a bid to policies, funds and strategic For instance, Amadeus, a
provide pertinent solutions suitable for projects that nurture disruptive travel software and technology
the new digital environment. ideas and entrepreneurship. solutions provider, notes
that service providers should
In a statement released by the World What is the traveler looking expect thetraveler to leverage
Tourism Organization (UNWTO), ithas for? more on mobile, such as
stressed the importance of tourism and location awareness and directly
technology, providing opportunities In a world of digital interaction, rebooking on the device. He
for innovation and creating the jobs today’s traveler has shifted focus wants to remain connected
of the future. Speaking during the on the sources of travel and in the digital, mobile, and vi
63rd European Commission meeting tourism data and information, rtualmarketplace;thus,expect
held in Prague-Czech Republic earlier highly dependent on mobile sseamless integration across
in June this year, Secretary-General applications and the digitalspace standalone apps such as those
ZurabPololikashvili affirmed the for their travel purchases. From that encourage social login.
organization’s aim to make innovation flight to hotel bookings, the
part of the solution to the challenge services are easily accessible Case Studies
of marrying continued growth with online, making it convenient
a more sustainable and responsible and user friendly. Service Therefore, the main question
tourism sector. is whether hotels and travel

34 Abyssinia Business Nework የካቲት ወር 2012 February 2020

“mobile-first”

Image by Buydeephoto

agents have been able to deliver on innovation and digitalization. Such is
these significant traveler demands and Jumia Travel, a leading OTA in Africa
what benefits they have recorded. which uses an Extranet Appboth on
Android and Web; in its strategy to
Speed, relevance, and accuracy of the usetop-notch technology to further
digital experience are vital when a hotel empower its hotel partners across
is seeking to grow conversion rates. all markets. The tool allows hotel
The AccorHotels Appfor instance, managers to confirm and view their
allows customers to experience a total incoming reservations, change their
immersion with virtual realityusing rates and update availability at their
their smartphones.Besides,it provides own comfort.By integrating multiple
over 2,000 tourism destinations and channel managers, the company gives
4,200 addresses toaffirm the importance its customers and hotels control over
of the location awareness application. their bookings, reducing thestandard
Other useful features include exclusive check-in timeand consequently
presales and room upgrades to reward increasing efficiency and cost savings
customer loyalty. in an industry ecosystemthat is highly
characterized by a “mobile-first”
On the other hand, travel agents have adaptation.
not been left behind in relation to

Abyssinia Business Nework የካቲት ወር 2012 February 2020 35

Ethiopian

Stirring E-commerce
Growth in Ethiopia

ET Corporate Communications

The advent of digital technology
coupled with the boom in commerce
within national boundaries and
globally has ushered in the era of
e-commerce, empowering individual
consumers to transact at their
fingertips. Though digital transaction
brings immense benefits to both
businesses and consumers in terms
of accessibility, ease and efficiency,
it cannot be realized without mature
internet connection, open financial
systems, digitally literate society and
availability of web-shops.

Hurdles on the Way

Almost all the ingredients necessary for
a thriving e-commerce were missing
in Ethiopia’s technological landscape
few years back presenting a daunting
challenge to businesses which sought
to engage in e-commerce. Banks were
not open for digital transaction and
lacked systems which accommodate
e-commerce. Digital transaction did
not take root in the country as it was
not a culture. On top of that, companies
didn’t provide web shops tailored to
local customers with local payment
options and languages.

36 Abyssinia Business Nework የካቲት ወር 2012 February 2020

Airlines

All these challenges meant that the airline’s services
e-commerce had very little foothold in available online
Ethiopia and forward looking companies
such as Ethiopian Airlines were having 24/7.
a hard time venturing into digital
transaction. In 2017, only four percent
of passengers in Ethiopia transacted
digitally to book air tickets, pay and check
in online. Members of the diasporas and
expats working in Ethiopia were the main
users of Ethiopian’s digital offering.

getting Image
Abyssinia Business Nework የካቲት ወር 2012 February 2020 37

Facing the Challenge Head On campaign dubbed “Go Digital”. Using getting Image
multiple channels, we sent consistent
Ethiopian Airlines has taken different messages about the benefits of Results Achieved
measures to address the challenges digitally transacting with Ethiopian in
that kept its digital offerings from terms of avoiding long queues at ticket The net result of all those efforts
gaining wider acceptance and usage offices and call centers. was tremendous! The four percent
by passengers in Ethiopia. In spite of digital usage in Ethiopia by the
the seemingly daunting hurdles, there The campaign included publicity end of 2017 leapt to 40 percent in
were opportunities for Ethiopian through radio, TV, print and social two years’ time. Currently, there
Airlines to significantly boost media; sales promotions through are over 350,000 online customers
e-commerce usage by leveraging incentives such as discounts, mileages, in Ethiopia and revenue of 2.8
technology to standardize and free tickets and upgrades; advertising billion ETB has been garnered
enhance services. Travel from and on TVs, radios, newspapers, etc; direct through digital sales. The feature
within Ethiopia was growing and marketing to customers through emails of our mobile app has also seen
there was an opportunity for wider and SMS enticing them to download significant improvement since its
acceptance of innovative platform Ethiopian mobile app; and personal launch to meet the evolving needs
that makes the airline’s services selling by deploying staff at Addis of local customers. The app also
available online 24/7. Ababa Bole International Airport and offers 11 local payment options
ticket offices to demonstrate how the in Ethiopia and is accessible in
Approaching banks to open up app is used. Amharic, Oromiffa and Tigrigna
their systems and embrace digital for local users. It has also been
transaction was one of the measures A dedicated 24/7 structure was also enhanced to allow authorized
we took to address the challenge in put in place to enable customers to
Ethiopia’s e-commerce industry. We access our digital service whenever
gave banks the opportunity to come they wanted. Staff also monitored
up with systems which are good the usage and provided support to
enough to interact with e-commerce customers through calls, social media
websites. There was a significant and email during and after customers’
appetite from the banks’ side to open experience with our digital offering.
up their systems and venture into
e-commerce as they too saw benefits The other measure we took was
in store for them in terms of cost building new digital marketing
reduction and efficiencies. It took capabilities to capacitate our staff to
most of the banks a couple of months run the system professionally and lay
to develop e-commerce enabled the ground for successful e-commerce
systems. endeavors. We have provided our
We have also created a web shop staff with training on search engine
which enabled customers to book, optimization, social media marketing,
pay for and secure their tickets email marketing, etc as part of the
using devices at their fingertips. capacity building initiative. Building
As awareness and confidence is a such digital skill set also boosted
prerequisite to the acceptance of our capacity in terms of mobile
new products, we have launched development, cloud development,
an aggressive integrated marketing automated testing, etc.

38 Abyssinia Business Nework የካቲት ወር 2012 February 2020

receipt generation. With the increase area we will continue to work on seen massive expansion recently.
in product awareness among local in the future. We have already We would also like to serve as
customers, the user base is also tested this at Addis Ababa Airport digital retail service providers
increasing from time to time. among domestic users, and got integrating more offerings such
tremendous acceptance and as hotel, tour package and Wi-
What Next? transaction growth. Currently, 30 Fi service on our mobile app and
percent of domestic passengers better serve domestic tourists.
Going forward, we plan to expand check in through social media Better utilization of internet of
Ethiopian Chabot across social media messaging platforms. We also things (IOT) technologies and
messaging platforms such as Telegram, plan to introduce guided speech aggressive awareness creation
Messenger, WhatsApp, etc. These conversation into the Chabot and marketing are also among the
platforms are enjoying exponentially which currently converses in text initiatives we have in the pipeline.
growing customer base in Ethiopia, only. As building digital skill set is one
and making the Chabot available on of the key areas in our digitization
those platforms will help us attract Likewise, we will add more initiative, we will keep building
more customers to our digital offerings. local features on our mobile app our in-house capability and be in a
Adapting those platforms for the travel including an airport map which better position to develop products
experience and enabling passengers will better guide passengers and service keeping pace with
to book, receive tickets and check- through Addis Ababa Bole emerging technologies.
in through those platforms will be an International Airport which has

Abyssinia Business Nework የካቲት ወር 2012 February 2020 39

A complete guide to

Ethiopia’s Wilderness

Some of the parks contain rivers and mountains where you can climb
and up closely see hippos, pelicans, thousands of birds and butterflies.
The mountains also has hot springs, savannah and caves where you
can safely explore inside and watch the wildlife from the top of the
high rise mountains.
The parks found at dense forests usually require a guide so that
travellers have a safe travel protected from the wildlife. Although
the wildlife going through their daily routine with their yapping
conversations gives you a glimpse of where they are it’s good to take
precaution for safety and pick a great guide at the entrance of the
parks to have a best view of the wildlifes Jumia Travel experts say.
Do not be intimidated to go deep into the wilderness and wonder at the
park the guides are experienced enough to keep you safe even during
unexpected incidents.
The park has waterfalls and natural spring waters where you can
soak and dip into the natural clear waters. Whether you prefer to cool
off in the waterfalls or you want to relax at the warmest natural hot
springs or you just want to watch the wildlife’s, be prepared to have
the best time of your life and an unforgettable adventure at any park
you pick in Ethiopia. Ethiopia has several stunning national parks
that will take you into deep amusement. The parks mix a variety of
stunning landscapes and wildlife creating the ultimate rewarding travel
experience.

There are plenty of breath-taking sights all around the parks. If you
are visiting during the peak seasons in September where the flowers
bloom and the scenic falls to its fullest ever green, you will be able to
witness the paradise nature of the parks. It’s an amazing experience
to find yourself below the powerful gushing and noisy waterfalls. A
trip to Ethiopia’s National Parks is nothing like you experience in
zoos, rather it’s a trip which takes you into an incredible journey
to the wildlife in its natural habitat. It’s a full scale destination
filled with an inspiring wildlife adventure. Spotting wild animals and
refreshing view of the green jungles are common adventures of the
parks. Few of these great parks are found at Ethiopia’s signature
mountains including at Ras Dashen, which, at 4,620 meters, is the
third highest mountain in Africa.

Abyssinia Business Nework የካቲት ወር 2012 February 2020

puibcak fnoircekstatnhde wuilltdimlifaeteviewIf nature with longest green trees and wildlife view is your thing, then exploring the
Menagesha Suba forest ancient parks are your perfect bet. Suba forest is one of the
best places to be immersed in Ethiopia’s greener dense forests that lasted for over
five centuries being the oldest forest in Africa. Located just 40 kilometres away from

S the capital city Addis Ababa it’s found lying in 2500 hectares of massive glamorous
landscape.
Suba is not only a place of trekking and wildlife view but also a place of an absolute
refreshment and adventure Jumia Travel observed. Suba forest established in 1434
during the time of emperor Zera Yacobe. Legend has it that the forest was erected for
the royal family and the king of the time. The rewarding trek takes over five hours for
fast walkers to make it to the top at mount Wuchacha and Damocha where you can
see the entire forests and the capital city on the far. Deck your tent and camp at the
refreshing fresh air from the forests and the magnificent nature. The forest trail is also
the best place to closely view the wildlife including the endemic Menelik’s bushbuck,
anubis baboon, Rougets’ rail, blue-winged goose black-headed siskin, colobus monkey,
bush pig, warthog, leopard, cats and birds. The natural habitat of the place has been
protected since the 15th century. It’s an exceptional family and romantic adventurous
place accompanied with walking under over five centuries gardens spotting several birds
and wildlife’s who are friendly and harmless.
The stunning forest is full of life. No doubt the forest and the wildlife are the major
draw at Suba Park but the traditional villagers are another attractions to the place.
They based their life on the forest cultivating and leaving with the friendly abundant
wildlife. Ethiopian oriole, yellow-fronted parrot, black-winged lovebird, banded barbet,
Abyssinian woodpecker and Abyssinian catbird are few of the wildlife’s who walk by
the forest adding a fabulous flavour to the over 500 years old forests and craters.
Have your meals out in the fresh breath of the 50 meter long forests. Look for the
Abyssinian Black-headed Forest Oriole, Abyssinian Slaty flycatcher, Banded Barbet,
Black-winged Lovebird, Thick-billed Raven, Wattled Ibis, White-backed Black Tit
and white-collared Pigeon among the best wildlife to see.
Exploring the massive forest and the park safely is very easy just follow the five trails
reading from the information’s that will be handed out at the entrance will also allow
you which trail to follow to view the wildlife and the forest at the best spot. You can
camp and enjoy the wildlife closer when they come looking to pick their food. Try the
traditional guest houses inside the park that will allow you to enjoy the nature and the
sights of the surrounding just do not forget to lock your doors as the monkeys and
rabbits will come to take your foods from inside but if you love adventure hide and
watch them while they strategically take some of your food, it is an exciting experience
by itself. It’s a must to pack ample foods and waters as the park does not provide such
a service however foods and waters can be found at the nearby restaurants and shops.

Abyssinia Business Nework የካቲት ወር 2012 February 2020

የአበቅየለሽን ጠጅ፤

ን ጌጡ ተመስገን በቡርቧክሶች ዜማ

( የጉዞ ማስታወሻ )

ምንጭ - አይቆረጠምም ደረቁ ባቄላ፣
(በቅርቡ ለህትመት ከሚበቃ
የተወዳጁ ጋዜጠኛ ጌጡ ጎንደር ከተማ ከመድረሳችን በፊት በማክሰኚትና አበቅየለሽ ጐንደር ፋርጣ የኔ ገላ፤
ተመስገን የጉዞ ማስታወሻ በጠዳ መካከል እናገኛታለን፡፡ በመሰንቆ ጨዋታ ***
መጽሐፍ የተወሰደ) የገነነችዋን መንደር፤ ቡርቧክስ እግር ጥሏችሁ
ከመንደሯ ቤቶች ወደ አንደኛው ድንገት እመቴ አበቅየለሽ፣
ጐራ ብትሉ ከሁለት እስከ አምስት የሚደርሱ (ከጠጁ፣ ከጮማው)
መሰንቆዎችን የቤቱ ምሰሶ ላይ በክብር
ተሰቅለው ታገኛላችሁ፡፡ አታመጪው የለሽ!
***
የእማሆይ አበቅየለሽ ጥንታዊ ጠጅ ቤት
የሚገኘው ጎንደር፤ ከፋሲል ግንብ ዋና መግቢያ አንድ ዕለት በለስ ቀንቶት እማሆይ
በር ደቡብ ምዕራብ አቅጣጫ፣ ከዣን ተከል አበቅየለሽ ጠጅ ቤት ተገኘሁ፡፡ እሳቸው
ዋርካ ወረድ ብሎ ነው፡፡ መኳንንቱና መሣፍንቱ የሉም፡፡ በ78 ዓመታቸው ነው ይህቺን
- በአንገተ ረዥሙ የመጀን ብርሌ ‹አስናቀ› ዓለም የተሰናበቷት፡፡ ትዝታቸውን ግን
የሚባል ጠጅ (ዘመናዊውን ውስኪ ያስንቃል ጥለው አልፈዋል፡፡ ወደ ጠጅ ቤቱ
ለማለት ነው) ያንደቀደቁበት፤ የቡርቧክስ ስትዘልቁ እርሳቸው በህይወት ሳሉ
የመሰንቆ ጨዋታ የኮመኮሙበት ታሪካዊ ጠጅ የሚቀመጡባት ቀይ ሶፋ፣ ከወንበሩ
ቤት ነው - እማሆይ አበቅየለሽ ጠጅ ቤት፡፡ አጠገብ መቋሚያቸው፣ ከመቋሚያው
አናት ላይ የእማሆይ አበቅየለሽ ይመር
ባለ ጥቁርና ነጭ ፎቶግራፍ በክብር
ተሰቅሎ ይጠብቃችኋል፡፡

አበቅየለሽ ይመር፤ በ1912 ዓ.ም. በጭልጋ በእድሜ የገፉ አዛውንቶች ወደ ጠጅ ቤቱ
ወረዳ ልዩ ስሙ ባርደምባ በሚባል ቀበሌ ሲዘልቁ ለአፍታ ቆመው፣ ባርኔጣቸውን
ከደብረ ምህረት እያሆ ቅድስት ማርያም ገዳም አውልቀው ለቀይ ወንበሯ እጅ ይነሳሉ፡፡
ተወለዱ፡፡ በ1934 ዓ.ም. ጎንደር ከተማ ገቡ ወንበሯ ላይ ማንም ሰው አይቀመጥም፡
፡፡ የጀመሩት የጥሩ ማር ጠጅ ጣይነት የንግድ ፡ አግራሞት ያጫረብኝ ደግሞ ጠጅ
ሥራ ከፍተኛ እውቅና አስገኝቶላቸዋል ፡፡ ጠግበው የሚወጡ እንግዶች ሁሉ
ከጎንደር ጥንታዊና ታሪካዊ ከተማ ነዋሪዎች የእማሆይ አበቅየለሽ ይመርን ‹ወንበር›
ዘንድ አልፈው በሌሎች የኢትዮጵያ ከተሞች በክብር ተሰናብተው መውጣትን ፈጽሞ
ስማቸውና ዝናቸው ናኘ፡፡ በኢትዮጵያ የኪነት አለመዘንጋታቸው ነበር፡፡
ባለሙያዎችም ዘንድ ‹‹ጎንደር አበቅየለሽ››
እየተባለ ሲገጠምላቸውና ሲነገርላቸው ኖረዋል::

42 Abyssinia Business Nework የካቲት ወር 2012 February 2020

*** በእድሜ የገፉ አዛውንቶች ወደ ጠጅ ቤቱ ሲዘልቁ ለአፍታ ቆመው፣
ቀን አልታይ ብለሽ በሌት እደክማለሁ፣ ባርኔጣቸውን አውልቀው ለቀይ ወንበሯ እጅ ይነሳሉ፡፡ ወንበሯ ላይ
የማገኝሽ መስሎኝ አፈር አሸታለሁ፡፡ … ማንም ሰው አይቀመጥም፡፡ አግራሞት ያጫረብኝ ደግሞ ጠጅ ጠግበው
የሚወጡ እንግዶች ሁሉ የእማሆይ አበቅየለሽ ይመርን ‹ወንበር›
*** በክብር ተሰናብተው መውጣትን ፈጽሞ አለመዘንጋታቸው ነበር፡፡
ሆዴ ጭሶ ጭሶ የነደደ እንደሆን፣
ያመዱ መፍሰሻ ሥፍራው ወዴት ይሆን?!

***
ብጨርሰው ኖሮ ቅኔውን ተምሬ፣
ከዘረፉት እኩል እሆን ነበር ዛሬ፡፡

***
ዳኛውም ዝንጀሮ መፋረጃው ገደል፣
ከየት ላይ ተቁሞ ይነገራል በደል፡፡

…
እያጨበጨብን ገና ሳይናገር፣
ጠገብን እያልን ገና ሳይጋገር፣
አጨብጭቡ ሲሉን እያጨበጨብን፣
ነጋላቸው አሉን እኛ ጨልሞብን፡፡

***
ቢገፉን ቢገፉን ደረስነ ከገደል፣
ከ’ንግዲህስ ወዲያ ዙረን እንጋደል?!

***
ወንድሙን እየገፋ አድርሶ ከገደል፣
ለእምነቴ ቀናሁ ከበደልም በደል፣
ፈጣሪን መካድ ነው እንደገና መስቀል፤

***
ባይወጉን ባይወጉን አይደለም፣ በነጭ

ያልተገዛን፣
ተቸግረው እንጂ፣ ስንሞት እየበዛን፡፡

***
ለቀይ ወንበሯ፤ ለእማሆይ አበቅየለሽ …

ለክብራቸው እጅ ነሳሁ፡፡
እናንተም እጅ ንሡ!

ሥም ከመቃብር በላይ ነው፡፡

Abyssinia Business Nework የካቲት ወር 2012 February 2020 43

ABN Mukajela’, which literally means “meeting under the
10 tree”.
Questions

By Aklile Tsige ? Fetihya Mohammed

Model

Mukajela:
“meeting under the tree”

Born and raised in the beautiful city of Dire Dawa in Eastern Ethiopia. Fetihya
Mohammed was the first born followed by a sister and two brothers. Ever since
she left Dire Dawa for the nation’s capital, Addis Ababa she has gone through
lots of ups and downs to reach where she is now. A mother of two sons and a business
woman Fetihya has significantly contributed to her country’s image building effort
through her modeling and beauty pageant experience. Aklile Tsige, ABN Editor-in-
Chief sat with Fetihya to present her ABN’s 10 questions.

44 Abyssinia Business Nework የካቲት ወር 2012 February 2020

ABN: Tell us a little bit about your
early ages.

Fetihya: I was born in Dire Dawa,
Eastern Ethiopia. I was the first
child to my family.. My family was
living a good life and the future
looked bright for them. All of that
changed when my father suddenly
died when I was only 5 years
old. Life became though, but as a
family, they managed to survive
and live a reasonable normal life.
But disaster stroke again when
my mother also became sick and
passed away not much later. I was
only 16 years at that time. My life
as a normal teenager going to high
school changed suddenly to a life
were I had to fight to survive, and
become the breadwinner.

ABN: How did you get into the
modeling industry?

Fetihya: When I was a teenager, a time, I was working as a reporter to mention some continents: Africa,
lot of people advised me to become for Nia Fashion Magazine. I did Asia, Europe and the USA.
a model. One day I met Zemi some freelance reporting for some
Younes, who was the most important newspapers as well as narration for ABN: What are your greatest
fashion show organizer at that time radio programs. achievements in life?
and she thought me everything I
needed to know. My life would ABN: Where did you experience Fetihya: I lost both parents of mine
change when I became 18 and your modeling career outside at a very young age, so I always
was scouted by an international Ethiopia? had to fight to survive. Now, I have
modeling agent from the UK. This become a strong, psychologically
has created opportunities for me Fetihya: Many places worldwide, and financially independent woman.
to participate in beauty pageants
and modeling shows all over the
world. I appeared on national and
international TV channels and as
an emerging and accomplished
public figure.

ABN: I think you have studied
Journalism at Unity College; did
you work with the profession? If
yes, to which media?

Fetihya: Of course, I have
graduated from the then Unity
College in Journalism. At that

Abyssinia Business Nework የካቲት ወር 2012 February 2020 45

“I always had That is what I consider my greatest
to fight to achievement. When it comes to my
survive. Now, modeling career, I have got some
I have become the following achievements over
a strong, the last 15 years:
psychologically
and financially 1. 2nd Runner Up in the Miss
indwepoemnadne”nt46 Abyssinia Business Nework የካቲት ወር 2012 February 2020 Ethiopia 2005 Election

2. 1st Runner Up as African Queen
in the Miss Tourism 2005 Election
in China

3. Rewarded as Miss Goodwill
in the Miss International 2006
Election in Japan

4. Coordinator for the Miss
Millennium event 2007 in the
Millennium Hall in Ethiopia

5. Stage model for the East African
Cultural Exchange 2009 in Kenya

6. Judge for Elite International
Fashion Show 2011 in Kenya

7. Stage model for fashion shows
in Belgium, the Netherlands and
Germany for 2014-2015 8. Model
for different advertisements in
press and national TV in Ethiopia
and Belgium

8. Has been on the front page of
several magazines and newspapers
including: Addis Admas, Reporter
and Nation Newspapers and
Fashion Magazine

9. Narrated several Radio Dramas
on Ethiopia radio and acted in
“Sew Lesew” drama series on ETV

10. Held several interviews with
ETV, Ethiopian National radio and
other media

11. Worked as a reporter for
different magazines

ABN: Tell us a little bit about
your participation in the film or
TV series drama. What are those
good performances of you?

Fetihya: I played in a few
Amharic radio dramas like
“Yeqegn kignit” and “Menta
menged”. Also there were the
regular shows on Saturdays and
Sundays Entertainment programs
and I had some guest actress roles
in “Sew Lesew” and some others.

ABN: What social or community
development initiatives are you
engaged in?

Fetihya: I have my own peace Fetihya: It is only through
project called ‘Mukajela’, strength, determination and hard
which literally means “meeting work that these blood of mine
under the tree”. It is an idea managed to climb out from the
of traditional conflict-solving dark hole they were in. All of
mechanism being practiced in them are now in a good living
the Eastern part of Ethiopia. condition as they managed to
Very recently I have conducted finish their secondary education
this peace initiative in my birth and university studies. Thanks to
place-Dire Dawa ,in the presence the Almighty Allah!
of famous Ethiopian vocalists
such as Ali Birra and Ali Shebo ABN: Would you please list
who are famous for their being down your favorite…….
founders and main actors for the
establishment of the old music Fetihya: • Pass time: spending
band called “Afrenqello”. time with my kids, watch movie
ABN: What are you currently and social commitments.
doing?
• Dish: Shiro /male/female: Aster Awoke,
Fetihya:, I have established the • Drink: Lipton Ice Tea Green Dr Ali Birra and Whitney Houston
Ethiopian Modeling Association • Movie: Notebook • Actor/actress local and foreign:
in collaboration with the FDRE • Quotation: Kedist G/Selassi, Liam Neeson
Ministry of Tourism. We will be • Book: Medemer by
working on making the industry Lots of ThanksandAngelina Jolie
stronger, more professional, PM Abiy Ahmed (Phd)
giving opportunity for Ethiopian • Source of information:
girls and women to get out of
their confined areas and promote electronics media, social media
their country in the global arena. • Vocalists: local and foreign

ABN: How did you manage to
help your sister and brothers?

Abyssinia Business Nework የካቲት ወር 2012 February 2020 47

Abyssinia Business Nework የካቲት ወር 2012 February 2020