Abyssinia Business Network APRIL 2019

Hooray!

Easter @ Last

Ethiopia 40.00 birr , USA 5.00 $ , Europe 5 .00 Euro , 2nd YEAR
South Africa 25.00 Rand , Kenya 500 Sh ,UAE 10.00AED NO 17

www.abyssiniabusinessnetwork.com ሚያዝያ 2011
APRIL 2019

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

02

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

Abyssinia Business Nework ሚያዚያ 2011 / April 2019 1

Editorial Team ABN : EDITORIAL

MANAGING DIRECTOR Primarily focusing on business and economic
development, our monthly magazine, Abyssinia
Daniel Tiruneh Business Network /ABN/ has been express its
commitment to disseminating fair, accurate and
MANAGING EDITOR timely information to the general public in general
and to the business community in particular, since
Getachew Alemu its first publication.

EDITOR IN CHIEF Well-known and much-trumpeted that Ethiopia
is executing wide ranging and stretched plans to
Aklile Tsige put itself among middle income earning countries
of the world by 2025. Having realized double digit
CONSULTANCY economic growth for 14 years in a row, it has
joined the few countries of the world with the
Zeima Ahmed fastest economic growth.
STAFF WRITERS
The government has widely involved the public
Mekonnen Hailu in the implementation of the first Growth and
Transformation Plan (GTP 1) that enabled to score
Ketema Kebede an annual average economic growth of 10.1%. This,
according to Ethiopian government sources, is
Chacha more than twice the performance of the economies
Hiwot Salelew of sub Saharan African countries with similar level
of growth.
Teshome Fantahun
In the last few years there has been an economic
REPORTER turn down caused mainly by on-and off political
Josephine Wawira and social unrests in many parts of the country;
Kamba Anthony nevertheless, due to relentless efforts exerted by
the Government, foreign investment flow appears
Joseph Oduha to be very promising while globally renowned
foreign companies show up to invest and harvest
Designer in most of the newly inaugurated industrial parks
across the country.
Daniel Tiruheh
Photo ABN has strongly analyzed that the engagement of
local and Ethiopian-born Diasporas in those parks
Sol Image is of very insignificant. Hence, we are echoing
Distribution the call of the Ethiopian government that the
investment opportunity to partake in the various
Hailu Abesse industrial parks is still cozy, open and lucrative.
Some of the parks are awaiting potential investors,
Partners either to participate individually or jointly.
Ethiopia Culture And Tourism
Addis ababa police Commission

Ethio Great Investment Support Service PLC

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02 Abyssinia Business Nework ሚያዚያ 2011 / April 2019

CONTENTS 10Equity Bank Eyes 27
Ethiopian Market Land of Origins :

04 12 30

Hooray! MAKING DIGITAL PLATFORMS Invest, Harvest in
Easter @ Last

መልካም በዓል

“ Wish you to have a
marvellous Easter! ”

Abyssinia Business Network

Abyssinia Business Nework ሚያዚያ 2011 / April 2019 03

Hooray!

Easter @ Last

By Aklile Tsige

Christians are marking one of the calendar, Easter falls on a getting image
most significant seasons in their Sunday between April 4th and
calendar: the time to commemorate May 8th each year.while Easter in Ethiopia invite friends and family
the death and resurrection of Jesus Sunday serves as the start of over and eat together. The celebration
Christ. Some of the ceremonies the season of Pascha (Greek for involves celebrating in gathering to
associated with this time are “Easter”), which ends 40 days commemorate Jesus’ resurrection
joyful. later with the holiday known as where the public show love to one
the Feast of the Ascension. another.
The Easter holiday concludes the
“Passion of Christ,” a series of In Eastern Orthodox If you enjoy festivity and big
events and holidays that begins Christianity, Easter rituals start celebration Ethiopia’s a place to be. It
with Lent a 40-day period of with the Great Lent, which has great destinations and celebrations
fasting, prayer and sacrifice and begins on Clean Monday that will stay in your mind forever. Get
ends with Holy Week, which (40 days prior to Easter, not your hands on the festivals, sights and
includes Holy Thursday which including Sundays). The last the lip-smacking tastes of Ethiopia.
isthe celebration of Jesus’ Last week of Great Lent is referred The country mixes festivity and fiesta
Supper with his 12 Apostles. to as Palm Week, and it ends aligned with best destinations and
with Lazarus Saturday, the day mouthwatering dishes. Easter is full of
Good Friday- a day on whichJesus’ before Palm Sunday which
crucifixion is observed, followed Palm marks the beginning of
by Easter Sunday. However, Holy Week, which ends on
Easter falls on a different date Easter.
each year.Easter Sunday and
related celebrations, such as Ash Ethiopian Easter, Market
Wednesday and Palm Sunday, are
considered “moveable feasts,” Accompanied with longer
although, in West which follows abstinence from proteins and
the Gregorian calendar, Easter animal products to fasting
always falls on a Sunday between Easter in Ethiopia is celebrated
March 22nd and April 25th. with big feast and lots of
cultural and religious activities
In Eastern Orthodox Christianity, that will enlighten visitors.
which adheres to the Julian Tradition holds that people

04 Abyssinia Business Nework ሚያዚያ 2011 / April 2019

getting image

getting image

charming holiday vibe during the observed. The Annual Easter Market held
day and night time with so much This time of year, holiday markets every year at the famous Addis
outdoor and indoor activities. are springing up all around Addis Ababa Exhibition Center feels
Ababa and other towns of regional more like a festival rather than
Handicrafts, clothing, leather states, from church fairs to school a holiday mart. Visitors find
shoes and bags price go down bazaars to high-end artist markets. handcrafted items and modern
significantly offering luxury items These markets highlight fun household furniture from various
without breaking the bank. It finds that feature the handiwork parts of the country and across the
takes you deep into unforgettable of artisans from both near and world.
experiences revealing its ancient far. Many have extras like food
wealth and traditions. Even if and live entertainment, and some The Addis Ababa Exhibition
you have seen the world and even have a man wearing toys for Centre has served as a welcome
experienced so much great in the sharing holiday wishes! Take this diversion for many over the past
globe, Ethiopia will amuse you opportunity to get into the holiday two decades. With over 400
with so much of its breath-taking gifts and find one-of-a-kind gifts exhibitors, including foreigners-
destinations Travel agencies for loved ones, too.

Abyssinia Business Nework ሚያዚያ 2011 / April 2019 05

getting image

the Easter Bazaar at this site is “I don’t see any Whether you’re looking for arts,
one of the great opportunities for crafts, foods, or gift certificates, the
retailers to make a good profit difference here except exhibitors believe local gifts make
prior to the holiday. getting all the items in the best gifts! Many recommend
one place,” Selam said. setting aside at least an hour to
“I don’t see any difference here “Everything, the price, the wander around the booths, since
except getting all the items in one product, has no difference there is so much to choose from!
place,” Selam said. “Everything, with other outlets outside Also, visitors shouldn’t forget their
the price, the product, has no reusable shopping bags.
difference with other outlets ”the bazaar.
outside the bazaar.” If you take your kiddos to the center,
be sure to stop to take a photo with a
The holidays can be a joyous time dinosaur’s model toy! Packed your
of year with friends and family. But pocket with sufficient amount of
this season can also be stressful, as bucks? Don’t worry! You can offer
you try to find the perfect gift for your kids every little thing ranging
those you love. from cotton candy, bubbles, to
electronic toys and sweets.

06 Abyssinia Business Nework ሚያዚያ 2011 / April 2019

And if you stick around until Saturday to the exhibition to buy stoves, event organized. Others strongly
evening, the very eve of Ethiopian Easter, clothes and canned foods. argue that as the center doesn’t
you’ll be enjoying the mesmerizing accommodate all-in-one sort of
contemporary music staged by renowned “I don’t see any difference bazar, shoppers don’t have little
Ethiopian vocalists. here except getting all the interest to visit.
items in one place,” Selam
AsfawAyele, owner and General Manager said. “Everything, the price, Nonetheless, the Easter
of Tewedaj Plc., has participated in holiday the product, has no difference exhibitions, being held at
exhibitions held in Addis Abeba for the with other outlets outside the the Addis Ababa Exhibition
past seven years. He sells kids apparels, bazaar.” Center and the Addis Ababa
shoes and adult clothes in his shed located Millennium Hall as well as the
inside the first pavilion. Daniel Kassa, a clothing retailer, bazars held in various malls
is one of the participants who are good opportunity for some
The bazaar gives visitors, such as enjoyed a spike in sales during businesses to increase sales and
SelamMengesha, 30, a platform to meet the current holiday. He believes outreach.
their demands.Selam has been attending that offering discounts is one
exhibitions for more than a decade. Now, way to attract more customers in Ethiopian Easter Cuisine
three years after getting married, she comes stricter economic conditions.“I
put a 20-30pc discount on Ethiopian Easter is mainly
each item to appeal to more characterized by the hustle and
customers,” he explains. bustleatmarkets where the laities
buychickens and oxen to be
The Addis Ababa Millennium slaughtered and turned into the
Hall is yet another venue that famous chicken stew,‘dorowot’
has provided holiday exhibition and raw beef respectively. It
service where items such as could; therefore, be named as
household furniture, modern Chicken-Beef Holiday.
apparels and shoes, electronic This super flavorful Ethiopian
materials and children’s chicken stew with bell pepper
entertainment are available. and baby spinach will fill
This 21-day-exhibition hosted everybody’s house with an
by JorkaEvents, according to a amazing aroma as the delicious
visitor, has become a rendezvous sauce thickens on the stove top.
for many Ethiopians at home One bite of the tender chicken
and the diaspora. and one will be in love with this
dish!
Here also visitors can have
access to enjoy music show and “ Walking through the
dance with popular and veteran streets of Addis Ababa, it’s
Ethiopian singers like Dawit not uncommon to see groups
MeleseShewandagnHailu,Ts of people gathered around
egayeEshetu, and many more restaurant tables feasting on
artists, everything in the center chunks of raw beef or goat
get your holiday season off to an meat.”
unforgettably festive start.
The chicken is cooked until it
Many witness that this center is very tender and falls apart
is not widely visited like the making the dish even healthier
former one; this may attribute by throwing in some bell
to the location of the center and peppers, cooking them until they
low-level of promotion to the are crisp tender, and stirring in
some baby spinach to wilt.

Abyssinia Business Nework ሚያዚያ 2011 / April 2019 07

getting image

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

A central ingredient of dorowat is Berbere, a fiery, meat from which small bites are sliced with a
bright red and flavorful Ethiopian spice blend. It is knife and dipped in various sauces, like Mitmita
best made fresh using whole spices that are toasted a powdered hot chili mixed with spices or Awaze,
and ground for maximum flavor. Mixof the whole a kind of chili paste, and “kifto”, finely chopped
and ground spices are also used in the long dorowat- beef mixed with spiced Ethiopian butter and
making process. served with Awazeor fresh crumbled cheese.

Traditionally Doro Wat is served with an Ethiopian Many people tend to tell that raw meat is a hearty
flatbread called injera. It’s kind of a spongy pancake meal that energizes them and refreshes their bodies,
made with teff flour (a grain indigenous to the area), as for the risks associated with eating uncooked
and the batter is left to ferment for up to 4 days before meat, which include exposure to tapeworms and
it’s used. The injera is used in place of an eating utensil dangerous bacteria like salmonella and E-coli,
and is used to scoop up the chicken stew. most just choose to ignore them.

This recipe is pretty amazing because it is a super However, the wars have been over for a long time,
healthy dinner dish that is the ultimate comfort food, yet Ethiopians continue to consume raw meat. It
but also super delicious! has become a sort of national dish consumed by all
ethnic groups and followers of all faiths, leading
Walking through the streets of Addis Ababa, it’s not some scholars to describe it as a
uncommon to see groups of people gathered around
restaurant tables feasting on chunks of raw beef or “transcendental national dish”.
goat meat. Although particularly popular on holidays
like the Ethiopian Easter, a lot of people consume raw The Ethiopian Easter vibe is fully featured by
meat virtually every day. consecutive spiritual and cultural rituals and
festivities, with colorful and exquisite public
The most popular raw meat dishes served in Ethiopia attire, unique cuisines, and most importantly,
are “teresiga”, literally “raw meat”, long strips of shopping at various exhibitions centers and malls.

Abyssinia Business Nework ሚያዚያ 2011 / April 2019 09

Equity Bank Eyes
Ethiopian Market

By: MekonnenHailu
(EIC Public Relations Director)

Many often associate financial
sector with Wall Street and the
exchanges that operate on it.
But there’s much more to it
than that. The financial sector
is one of the most important
engines accelerating growth and
development in many developed
and developing economies. This
sector, of course, embracesa broad
range of industries, including
banks, investment and insurance
companies.

The financial sector is also a The financial sector generates a and societal changes have been
crucial section of the economy good portion of its revenue from witnessed inseveral directions despite
made up of firms and institutions loans and mortgages. And these some socio-political unrests and
that provide financial services gain value in an environment instability in some parts of Ethiopia.
to both commercial and retail where interest rates drop. When The reform has already attracted the
customers. Thescope and growth rates are low, the economic attention of foreign companies.
of the economy largely depends conditions open up doors for more
on the strength of its financial capital projects and investment. Taking this fact into consideration,
sector. The stronger the financial Hence, the financial sector regional lender Equity Bank is looking
sector, the healthier the economy. benefits and ultimately resulted in for investment opportunities in
In order for an economy to remain more economic growth. Ethiopia as part of its push to become
stable, it needs to have a healthy a Pan-African bank. “We are focused
financial sector. There is no One year has already passed since on Ethiopia because that market could
question that this sector advances the country started a new reform possibly open in 2020 or 2021.The
loans for businesses so they can in every sector. Lots of changes entry strategy is through acquisition
expand, grants mortgages to have been observed within a short given that it is a big market. In big
homeowners, and issues insurance period of time. Political, economic markets, you enter by acquisition,”
policies to protect people,
companies, and their assets. It
also helps build up savings for
retirement and employs millions
of people.

10 Abyssinia Business Nework ሚያዚያ 2011 / April 2019

Ethiopia has allowed some
foreign banks to open liaison
offices in Addis to facilitate credit
from their countries of origin.
These are Kenya’s KCB and
CFC Stanbic, alongside Chinese,
German, Turkish and South
African lenders.

Foreign investors seem to see a
ray of hope as the government
pursues broad economic reforms
to liberalize the financial sector.
Kenyan banks are seeking
opportunities in financial services
inclusion, to replicate successful
banking models such as mobile
and agency banking in the
Ethiopian market.

In 2008, Equity made its
first cross-border expansion
by acquiring Microfinance
Company of Uganda Ltd at an
estimated $16.6 million.Its latest
acquisition was the Congolese
ProCredit Bank at $34 million,
giving it presence in the mineral-
rich country in 2015.

MrMwangi,Bank’s representative financial institutions. In 2015, the In 2015, Equity shareholders
said. National Bank of Ethiopia increased approved a Ksh20 billion ($200
the minimum paid-up capital for banks million) new capital injection
Equity’s interest in Ethiopia, from 500 million ETB to 2 billion ETB. to drive the lender’s ambitious
Africa’s second-most populous Banks are expected to comply by June expansion, but in early 2016
nation with more than 100 million 2020. the bank’s board suspended
people, is informed by a wave of In 2016, the Eastern Africa nation the program to consolidate its
reforms that Ethiopian leaders made a landmark decision to relax the regional business and restructure
have put in place to open up an restrictions on the licensing of foreign underperforming subsidiaries
economy that has, for long, been financial institutions to operate in the into moneymaking ventures.
under state control. country, presenting a huge growth
opportunity both for regional and global All of Equity’s regional
At the present time, Ethiopia has banks.As of mid-last year, foreignbanks subsidiaries, save for Tanzania,
18 licensed commercial banks, were still not allowed to provide are now profitable.In 2018 the
of which Commercial Bank of financial services in Ethiopia and the subsidiaries contributed 15
Ethiopia and Development Bank market remained closed to foreign retail per cent of the bank’s overall
of Ethiopia are state-owned banks. profitability which grew by five
per cent to Ksh19.69 billion
($196.9 million) from Ksh18.86
billion ($188.6 million) in 2017.

Abyssinia Business Nework ሚያዚያ 2011 / April 2019 11

MAKING

DIGITAL

PLATFORMS
WORK FOR
DEVELOPMENT

By staff writer

UNCTAD

Digital platforms create new opportunities different users; the reliance on to connect users, buyers and
for companies of all sizes to engage in
trade. They can lead to efficiency gains network effects, as more users sellers, such as services related
through lower transaction costs and reduced
information asymmetries supported by beget more users, leading to to logistics, payments, market
rating systems. Other benefits include
lower consumer prices, increased market monopolistic trends; and the research, trade compliance,
access, more competition, better use of
underutilized resources and increased use of cross-subsidization. The market intelligence data,
flexibility for the providers of services.
However, gains are not automatic, and most important value of such advertising, refunds and dispute
there are growing concerns over the rising
market power of certain platforms and platforms stems from the data resolution.
the related implications for competition,
data protection and ownership, consumer extracted from users that can
protection and taxation and employment
policies. Economic policies and regulations be further analysed, used and Digital platforms can allow
will need to maximize the benefits while
at the same time minimizing the costs of monetized. Data have become a for a more efficient utilization
digital platforms
valuable extractable resource in of physical assets and time.
Electronic commerce in the digital
economy landscape the digital economy. Often accessed through mobile

Digital platforms are key in the evolving applications, they aggregate
electronic commerce (e-commerce) and
digital economy landscape. Their main By reducing transaction and and bring together supply and
characteristics include the provision of
infrastructure to intermediate between search costs, digital platforms demand in ways that were

enable those offering assets or not possible before. Digital

services to connect more easily platforms can also help to

with those wishing to use or empower women entrepreneurs.

consume them. This has created

potential opportunities for new One way of illustrating this new

trade types (in digitally traded digital platforms landscape is

products, services and tasks) shown in the figure. Digital

and for more traditional trade platforms are divided into two

using e-commerce and other groups: profit-oriented and non-

online platforms to better match profit- oriented. The size of

buyers and sellers and to make non-profit-oriented platforms is

products more visible. Many likely to be marginal compared

platforms provide access to free with profit-oriented platforms.

or paid services via the Internet Profit- oriented platforms can

12 Abyssinia Business Nework ሚያዚያ 2011 / April 2019

UNCTAD

also be subdivided depending of resource requirements, flexibility Another option is to set up a stand-
on their main business focus. and the need for in- house skills alone e-commerce site. This can
Some examples of the different and capabilities. One option is to be done, for example, by adding
categories are provided. As some use third-party online marketplaces. an e-commerce function to an
platforms are multipurpose, they Some provide a full range of services enterprise’s existing website, by
may appear in several places. payment processing, customer service, using a software-as-a-service
shipping, return processing and delivery e-commerce solution with a
The role of electronic commerce while others act mainly as an online package of what is needed to
platforms in developing forum for buyers and sellers to meet; operate e-commerce or by building
countries transactions are carried out offline. The a customized e-commerce site.
primary focus of these marketplaces
There are different ways for may be business to business, business Benefiting from economies of scale
microenterprises and small and to consumer or consumer to consumer. and network effects, a few major
medium-sized enterprises to gain online marketplaces have captured
an online presence to market They often specialize in certain types significant parts of the overall
their of products, such as physical goods, market. Leading e-commerce
digital products or information and platforms include the Alibaba
goods and services to potential communications technology-enabled Group, Amazon, eBay and Rakuten.
buyers in their own country or services. The geographical focus of
in foreign markets. Participation such marketplaces is also important. The development of a local
in online platforms may be more International online marketplaces may e-commerce industry can provide
useful for smaller firms that be open solely to international sellers, convenience for residents through
compete in specific, well-defined to international buyers, or both. In shorter shipping times, flexible
market segments, such as niche countries with expanding e-commerce payment options, relevant products
trading in tourism and in value markets, domestic and international and local language interfaces. Other
added food products. platform providers often compete head potential advantages domestically
to head. may include more linkages with
Different options vary in terms local industries, reduced reliance
on imports and greater openness

Abyssinia Business Nework ሚያዚያ 2011 / April 2019 13

to support exports. E-commerce are targeting the domestic market, €4.34 billion for breaching
platforms that have emerged in enabling consumers to browse and European Union antitrust
developing economies include Jumia order goods or services online. More rules.3 Finding the appropriate
in Africa; Flipkart, Lazada and Souq research is required to understand responses to deal with possible
in Asia; and MercadoLibre in Latin the income and employment effects anticompetitive practices in the
America. of local e-commerce platforms. digital economy will become
increasingly important.
The division between local and Policy implications
foreign platforms is becoming Consumers have benefited
increasingly blurred. Many domestic The growing use of digital from digital platforms through
platforms may be unable to compete platforms has economic, social and new and better-suited offers,
with international platforms. In political impacts. Policymakers lower prices and more pertinent
addition, once domestic e-commerce face challenges in different policy information. Yet the lack of
platforms achieve a certain scale, they areas, including the following. face-to- face transactions entails
often become targets for acquisition greater risks regarding disclosure
by global players. For example, 1. Competition and consumer and transparency, data protection
recently, protection and the applicable laws and
responsibilities of platforms and
Walmart has acquired Flipkart, Winner-takes-all dynamics peer providers. As stated in the
Alibaba has acquired Lazada and United Nations Guidelines for
Amazon has acquired Souq. are typical in platform-based Consumer Protection, member
States should ensure a level of
Due to the existence of network economies, where network effects protection in e-commerce that is
effects, local platforms may not “not less than that afforded in
become profitable until they reach a can generate major benefits to other forms of commerce,” which
critical mass. If only 2–3 per cent of also applies to digital platforms.
consumers in a country buy online, first movers. Whoever controls
it may not be worthwhile to invest 2. Data protection and privacy
in digital platforms. Companies may the platform also controls the
need to wait until the market exhibits The digital economy relies
some growth. However, with fast distribution channel, giving the increasingly on the generation,
market growth expectations, some storage, processing and transfer
firms may temporarily accept low dominant platform (and data) of data, both within and across
or negative profitability to reap first- national boundaries. Data access
mover advantages. owner considerable market power. and analysis are becoming
strategically important for the
In some developing countries, the Digital platforms are transforming competitiveness of companies.
absence of global platform providers markets and competition. If they With regard to the use of digital
creates scope for local players. For evade some of the regulatory
example, in sub-Saharan Africa, requirements that traditional platforms, there are concerns
various e-commerce solutions businesses need to meet, they may over how to harness data flows
have been developed to facilitate be perceived as providing unfair while addressing concerns related
commerce over feature phones. There competition. The digital platform to privacy and security.
are thousands of e-commerce start- environment may lend itself to
ups throughout the continent, but only potential anticompetitive practices. Policymakers need to strike
a few have reached significant scale. As a result of network effects, a balance between the need
Many new e-commerce payment platforms may gain market power for companies to collect and
gateways have also cropped up. and could abuse their dominant analyse data for innovation
In various low-income developing position, for example by imposing and efficiency gains and the
economies, new e-commerce sites exclusivity arrangements on their concerns of other stakeholders
providers or carrying out predatory
pricing against competitors. In
some competition cases involving
platforms, they were not considered
to hold dominance over the relevant
market.2 By contrast, the European
Commission recently fined Google

14 Abyssinia Business Nework ሚያዚያ 2011 / April 2019

Abyssinia Business Nework ሚያዚያ 2011 / April 2019 15

with regard to security, privacy resident e-commerce businesses, how platforms. This is creating new
and the movement and ownership to assess intragroup transactions, income-generating opportunities
of data. The current system for how to classify digital goods, how to for people in developing countries
data protection is fragmented, and identify taxpayers and where and how who have adequate connectivity
national data policy and legislation to collect consumption tax. Moreover, and relevant skills. Such platforms
has not yet been developed in many the digital economy could enable enable many professionals to sell
developing countries. Efforts to more tax planning and erosion, which their services to clients abroad.
promote convergence and ensure reduce the availability of domestic Annually, some 40 million people
compatibility between different resources for development. Finding access such platforms, looking for
international initiatives are needed. ways to address related concerns are jobs or talent. At the same time, the
of relevance to all countries. Digital fragmentation of the production
3.Taxation platforms, in a context of closer process and a large oversupply of
international tax cooperation, could jobseekers on such platforms may
Policymakers in both developing facilitate enforcement, by reducing weaken their bargaining power
and developed countries face the the number of actors involved in and accentuate tendencies towards
challenge of taxation with regard taxable transactions and facilitating a race to the bottom in terms of
to the digital economy. Reliance monitoring and traceability. compensation and other working
on digital platforms may weaken conditions. Policies and regulations
the international tax concept that 4. Employment and working need to be designed to enable this
allocates jurisdictional tax claims conditions expanding segment of the economy
over profits of multinational to ensure the provision of quality
companies based on physical The evolving digital economy has and decent jobs.
presence. It raises issues such as been accompanied by the rise of trade
enforcement, where to tax non- in tasks mediated by online labour Digital platforms match tasks

UNCTAD

16 Abyssinia Business Nework ሚያዚያ 2011 / April 2019

U across the entire skills spectrum. with the African Union, the European Union and
N They typically favour certain types of partners of the eTrade for all initiative, and held from
C contracts (freelance and contract work 10 to 14 December 2018 – examined ways of enhancing
T rather than regular employment). the readiness of countries in Africa to trade online
A Workers with high levels of social and digitize their economies. The Nairobi Manifesto
D protection may find themselves in on the Digital Economy and Inclusive Development
competition with workers in the in Africa charts a course for countries in Africa, with
domestic market or abroad with lower policy recommendations in the following nine critical
levels of social protection. This has areas: e-commerce readiness assessment and strategy
implications for how benefits, health formulation; information and telecommunications
care and pensions are organized, technology infrastructure and services; payment
and for the provision of training and solutions; trade logistics – transport and trade facilitation;
education. Moreover, as net benefits legal and regulatory frameworks; e-commerce skills
from the reliance on digital platforms development; access to financing; e-commerce and
can be unevenly distributed, the role women’s empowerment; and measuring e-commerce
of redistribution policies should be and the digital economy.
explored.

In order to address these policy
challenges and maximize the
development effects of digital
platforms, relevant policies and
regulations may need to be adapted
to the new digital context. Economic
activities online should, to the greatest
possible extent, be regulated in a
manner consistent with a fair trading
environment that is not biased towards
or against any modality of trade and
that provides equivalent protection
to the rights of all parties involved.
Finding the best development-
oriented policy solutions in specific
areas will require more dialogue
between member States. It will also
require more capacity- building in
multiple areas in those countries
that are the least prepared for the
digital era. Together with its partners,
UNCTAD has a key role to play in
both these contexts.

A notable illustration of the need for
increased dialogue is the UNCTAD
eCommerce Week, which has
become a leading forum to discuss
the development challenges and
opportunities brought about by the
digital economy. The first regional
version of this forum, Africa
eCommerce Week – organized jointly

Abyssinia Business Nework ሚያዚያ 2011 / April 2019 17

Safaricom,
Vodacom

Eye

Ethiopia

By Staff Reporter (Nation) licence to provide all services other Much as Safaricom, that is partly
than standard voice calls. Safaricom owned by Vodacom and Vodafone,
If all goes as planned, sooner wants to use most favored nation has 30-million subscribers, its taking
than later, Kenya’s leading status given to Kenya. However, of the M-Pesa deal in Ethiopia will
telecom giants, Safaricomand Vodafone is majority shareholder of offer it a real competitive advantage,
another telecom, Vodacom will be Safaricom; they may not qualify as a but amidst allegations of lobbying
operational in Ethiopia. fully owned Kenyan company. and sidelining of local operators in
Ethiopia.
Safaricom and South African Ethiopia, the East African nation of
telecom giants, Vodacom, who 105-million people is Africa’s most Hopes are already high that M-Pesa
own majority shares in the Kenyan populous country after Nigeria, would help transform Ethiopia’s
network, have already been in and has one of the most closed economy further, but the local
private negotiations with top and controlled economies on the operating partners are demanding for
Ethiopian government officials. continent. a “leveled playing field.”
According to latest details, Vodafone
But much as the talks are in high Vodacom has operations in will license the use of the M-Pesa
gear between the two parties, Mozambique, Lesotho, the brand to Ethiopia’s leading bank,
opportunities seem not to be so Democratic Republic of the Congo, Commercial Bank of Ethiopia (CBE),
clear yet, especially regarding the Tanzania and Kenya. Kenya’s while Safaricom will host the servers
strict investment laws in Ethiopia. Safaricom recently took its M-Pesa in Nairobi, Kenya.
All new parties may need to brand global after partnering with
acquire additional licenses from Western Union that has now seen Ethiopia’s state telecommunications
the Ethiopian government that users send and received money in monopoly, Ethio Telecom, will carry
runs the leading Ethio-Telecom more than 200 countries. the service. Now local companies
with over 60 million subscribers. such as M-Birr (Birr is Ethiopia’s
Started 11 years ago as a basic service currency), Dashen Banks’ Amole,
Vodacom has been eyeing the to transfer money via mobile phone to Hello Cash, that have always had
Ethiopian market for years to cater for Kenyans without access to the desire to achieve the same sort of
diversify its earnings, which rely the formal banking network, M-Pesa ubiquity, bringing financial services
heavily on the SA market. In 2013 has evolved into a fully-fledged to people who have never held a bank
it opened an office in Ethiopia financial service, offering loans and account in the process are already
and secured a value-added service savings in conjunction with local crying foul.
banks, as well as merchant payments
services. According to reports, Awash

18 Abyssinia Business Nework ሚያዚያ 2011 / April 2019

Bank is ready to work with CBE The Safaricom officials have of granting them (foreign firm)
(Commercial Bank of Ethiopia). reportedly already met the Ethiopian majority monopoly,” said another
It is anticipated the signing of the Finance Minister, Mr. Ahmed Shide, concerned party.
MOU will be in April. The contracts as well as the Minister for Innovations
will be ready by end of April then and Technology, Mr. Getahun Already Safaricom is battling
technical work by August and Mekuria plus the Chief Executive of a trademark and branding case
eventual launch by September. the Commercial Bank of Ethiopia, with Ethiopia’s based Amole
Mr. Bacha Gina. Mobile Money Company in
Awash Bank wants to be one of Kenya “KIPI”. Although Moneta
the top 10 largest banks in East “The next thing we have gathered, Technologies has registered and
and Central Africa. They feel that is that they are destined to meet the been granted the Amole brand
mobile money will help them Prime Minister to seal the deal, said in Ethiopia and US, Safaricom
achieve this. They are committed a concerned local operator who wants to register the brand in
to invest whatever is required to preferred not to be named. The team Kenya for unknown reason.
conquer the market and drive their that met Ethiopian officials included; Amole was started by Dashen
banking activities using technology. Safaricom Head of strategy and Bank, the leading private
Both banks have committed to work planning, M/s Debora Mallowah, digital bank in Ethiopia, and
with them and commit the required the Chief Business Development its technology partner, Moneta
resources to make the service a Officer, Mr. Ken Okwaro, while the Technologies.
success. local agent (Mr. Fixer) helping in the
“lobbying” has been identified as a Amole, named after the ancient
They have up to $10m to invest one Mr. Addis Alemayehu salt-bar currency used in ancient
in the market to push the uptake Ethiopia, offers subscribers digital
service. SFC is pushing for a dual The local companies are saying payment capability and access
partnership between CBE and they are being sidelined and left to aggregated digital products
Awash and themselves out of the merger, partnership with and services from Retailers, the
Safaricom. “We are already in Entertainment Industry, Airtime
Local firms left out business and providing a service, Dealers, Bill Payment Points,
why not support us to grow, as a Airlines, Social Media Players
Reports have already emerged how local Ethiopian company, or allow and third-party service providers.
top Safaricom officials have been us partner with investors, instead
engaged in private meetings with
top Ethiopian officials.

Abyssinia Business Nework ሚያዚያ 2011 / April 2019 19

2100 Abyssinia Business Nework ሚያዚያ 2011 / April 2019

Abyssinia Business Nework ሚያዚያ 2011 / April 2019 211

Let’s Network ! Tel:+251-116-67-46-55
Mob:+251-983-31-30-30
A company from London wants to come to Ethiopia to open
a branch of it shoe manufacturing plant, the company has a A real estate company that has 13 stories apartment
40years of experience in the business but wants to come in as a built in a central part of the city and in the final stage
joint venture as it looks to manufacture for local consumption of finishing is looking to sell the building. Interested
rather than export. Any interested investor can partner up with buyers, who have the capacity to take it out of the
them by either putting up work space, money or both. sellers’ hands immediately, will get priority.

A coffee roasting and packaging company in A tomato paste manufacturing company in Amhara
Ethiopia is looking for an export opportunity region wants to outsource it distribution to interested
in south east Asia and will be willing to sign an parties. The distributer should have the capacity to take
exclusive partnership agreement with interested all the manufactured good with its on transportation
parties who will be willing to take and distribute and should also be able to distribute the product to
a constant amount of the product to the region per different part of the country.
year.

22

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

REGULATION Profits and dividends accrued importer shall be served on first
OF FOREIGN from investments come first served basis. There are
EXCHANGE also payments which are regarded
IN ETHIOPIA Principal and interest payments as invisible payments for which
on external loans commercial banks sell foreign
By:Gebreala Abraham currency on demand basis.
Payments in relation with
Given the country’s forex crunch, Ethiopia registered technology transfer The NBE has issued a directive to
has stringent foreign exchange control agreements regulate opening foreign currency
rules. The National Bank of Ethiopia accounts.In addition to foreign
(“the NBE”) is the authority with the power Payments in relation to investors, Ethiopians who reside
to formulate and implement exchange rate collaboration agreement with a abroad, exporters and foreign
policy, has issued a number of directives domestic investor nationals of Ethiopian origin are
regulating foreign currency. Efficient use - Proceeds from transfer of shares allowed to open foreign currency
of hard currency is backed by the country’s or partial ownership account provided that, they have
policy of import substitution. As a result of - Proceeds from sales or fulfilled requirements under the
this, export focused production and service liquidation of the company law.
provision is encouraged. - Compensation paid to
the company as a result of
Repatriation of Foreign Currency expropriation

The other regulated area in terms Holding foreign currency while
of use of foreign currency is, present in Ethiopia is not without
repatriation of loan and suppliers’ restriction. The rules of NBE
credit. In principle, investors are impose limitation on for how
expected to solicit finance from long an individual person can
domestic sources and basically have a foreign currency under its
from financial institutions. In possession. Every person entering
case when investors opt to get to the territory of the country shall
loan from external sources, such declare the foreign currency under
loan agreement shall be approved its possession before customs
and registered before the NBE. authority, if the foreign currency
In addition, suppliers credit amount is above the minimum
agreement shall also be registered threshold the law provides.
before the NBE.

The foremost concern for investors when Foreign Currency for Import
it comes to foreign currency regulation
is, compliance to the rules that govern Failure to observe the rules
the repatriation of profit, inflow of
external loan and salary remittance. One Transparency in allocation of provided under the directives
of the guarantees provided under the
Investment Proclamation 769/2012 is foreign exchange directive issued by the NBE entails criminal
remittance of funds. Any foreign investor
has the right to remit funds in convertible provides rules on use of foreign responsibilities punishable
foreign currency at the prevailing rate at
the time of remittance. Remittance right currency for importation of goods, with fine and/or imprisonment.
is guaranteed with respect to approved
foreign investment.Domestic investors services and inputs. The directive Moreover, when it comes to
are not entitled to remit foreign currency
outside of the country in respect of their provides priority lists in three investors who violate the laws, the
investment. The list of causes mentioned
by the investment proclamation as eligible different categories depending on commercial banks have the duty
for remittance of funds are:
the domestic need to import the to submit their names to the NBE

goods. Among these priority areas black list of delinquents.

Abyssinia Business Nework ሚያዚያ 2011 / April 2019 23

Africa
set to be
the next
big mobile

market

Credit: Josephine Wawira

Image by Andrey_Popov

Africa is judiciously positioned to be A growing population of 1.28 payments as well as searching for
the next big mobile market, enviously billion people (42% of which are information.
eyed by global investors for her in cities), a snowballing middle
enormous growth opportunities. 2019 class expected to reach 1.1 billion Nevertheless, the growth of
is undeniably the year to prioritize out of the 2.5 billion Africans mobile will remain uneven, as
investments in Africa’s mobile by 2050 - leading to a higher the 54 African countries record
market, to leverage this monetary purchasing power - are among varying performances, both in their
opportunity. the considerations for Africa’s respective mobile markets and the
According to a Mobile Report for mobile explosion. entire economies
Africa released by Jumia, Africa’s
leading e-commerce platform, the
continent’s real output growth is
expected to reach 4.1% by the end of
2019; from an estimated 3.5% in 2018.
The growth is expected as a result
of improvement in macroeconomic
conditions in the continent.

The Mobile Economy contributed Other factors that have driven Booming number of smartphones
USD 110 billion to Africa’s GDP much of Africa’s growth in in Africa
(7% of the total GDP) in 2017 and is mobile subscriptions include
expected to generate more than $150 more affordable smartphones, In 2018, Africa had 255 million
billion (approximately 7.9% of GDP) declining mobile data plans, smartphone connections, which
by 2022. The mobile technologies and the efficiency brought about by is equivalent to 36% of the total
services industry further supported 3 smartphones including online population. This is against a 444
million jobs in 2017. shopping/purchases, mobile million mobile subscriber base in

24 Abyssinia Business Nework ሚያዚያ 2011 / April 2019

However, the rise of affordable entry-level devices from
price-focused brands remain a key driver of smartphone
adoption in Africa. Among the top mobile brands on Jumia
in 2018 included Infinix (which has been thee top brand for
the last three years), Samsung, Xiaomi, Tecno and Fero.
Besides, while affordability of mobile data in Africa is
improving across the board, the cost remains high, with the
price of 1GB averaging around 8.76% relative to monthly
income in 2017.

Sub-Saharan Africa is experiencing a high migration
rate to mobile broadband-capable connections, with 5G
connections expected to launch in Africa in 2021. In 2018,
4G stood at 6%, 3G at 35%, while 2G dominated at 59%.
By 2025, 5G will account for 3% of the total connections,
while 4G will rise to 24%. 3G will be dominant at 59%, and
2G will have dropped to just 14% of the total connections.

the continent by 2017. By 2025, there ”
are expected to be approximately 690
million smartphones in Sub-Saharan
Africa, equating to a connection of
about 66%.

Although affordability of the smartphone
has been quoted as a major challenge
for a part of the population, Jumia -
Africa’s leading e-commerce platform -
has reported a decreasing average price
of smartphones over the last three years.
The average amount spent to purchase
a smartphone on the platform in 2016
stood at 99 USD, which reduced to
96 USD in 2017 and 95 USD in 2018
respectively.

Abyssinia Business Nework ሚያዚያ 2011 / April 2019 25

Online Marketplaces
Could Create 3 Million
Jobs in Africa by

2025

Credit: Josephine Wawira

Online marketplaces such as Jumia, a lack of regulatory clarity, and there’s minimal risk that e-commerce
Souq, Uber, and Travelstart could create limited market access. For their will displace existing retailers and
around 3 million new jobs by 2025 across part, African policymakers are that much of the population is
Africa. These digital platforms, which concerned about issues such underserved.
match buyers and providers of goods as data security and potential
and services, could also raise incomes disruption to traditional business Nor are online marketplaces likely
and boost inclusive economic growth sectors. to disrupt labor-market norms by
with minimal disruption to existing blurring the lines between employees
businesses and workforce norms. These The Economic and Social and freelances. Unlike in developed
are among the findings of a new report, economies, the vast majority of
titled How Online Marketplaces Can Benefits of Online Marketplaces African workers are in the largely
Power Employment in Africa, released undocumented and unregulated
by Boston Consulting Group (BCG). “Online marketplaces are a good informal sector. In Nigeria, for
example, 71% of workers are self-
Generating employment is an urgent illustration of how the digital employed and another 9% contribute
priority across the continent.TheAfrican labor as family members.
Development Bank estimates that one- revolution can create economic
third of the 420 million Africans age 15 The report also details the ways in
through 35 were unemployed as of 2015. opportunity and improve social which economic activity generated
Around 58% of the new jobs—created by online marketplaces boosts
directly, indirectly, and through the welfare in Africa,” said Patrick employment and incomes. These
additional economic activity generated businesses create demand for
by online marketplaces—will be in the Dupoux, a senior BCG partner personnel in new fields, such as
consumer goods sector, 18% will be in platform development, as well as for
mobility services, and 9% in the travel who leads the firm’s Africa merchants, marketers, craftspeople,
and hospitality sector, according to the drivers, logistics clerks, and
report. business. “Because Africa hospitality staff. Some also offer
For online marketplaces to reach their skills-development programs and
full potential, however, the public and currently lacks an efficient help small enterprises raise capital
private sectors must work together to expand their businesses. Online
to build the right digital environment distribution infrastructure, marketplaces also boost demand for
from the outset, the report notes. goods and services in areas currently
Obstacles to industry expansion online marketplaces could create beyond the reach of conventional
include underdeveloped infrastructure, retail networks and bring new people
millions of jobs.”

Concerns that growth in online
marketplaces will merely
cannibalize the sales of brick-and-
mortar retailers are misplaced in
the case of Africa, according to
the report. There were only 15
stores per one million inhabitants
in Africa in 2018, compared with
568 per million in Europe and
930 in the US. This extremely
low penetration suggests that

26 Abyssinia Business Nework ሚያዚያ 2011 / April 2019

such as women and youth who may be a BCG principal and co-author its work, the center has amassed
currently excluded from labor markets of the report. About Boston a rich set of proprietary data on
into the workforce. Consulting Group consumers from around the world,
in both emerging and developed
“While online marketplaces are often Boston Consulting Group markets. The CCI is sponsored by
seen as disruptive forces in advanced (BCG) is a global management BCG’s Marketing, Sales & Pricing
economies, in Africa’s less-structured consulting firm and the world’s practice and Global Advantage
economics they can be tremendous leading advisor on business practice.
catalysts of economic development,” strategy. We partner with clients
said Lisa Livers a BCG partner and co- from the private, public, and not- About BCG in Africa
author of the report. for-profit sectors in all regions
to identify their highest-value Our presence inAfrica includes five
The report recommends that the opportunities, address their permanent offices in Casablanca,
online marketplace community and most critical challenges, and Lagos, Luanda, Johannesburg and
African governments collaborate to transform their enterprises. Our Nairobi and 7 research centres.
address the challenges that hinder customized approach combines BCG projects on the continent
the online marketplaces’ ability to deep insight into the dynamics cover a large spectrum of industry
grow. Both industry and government of companies and markets with sectors including Financial
should take actions that foster a mutual close collaboration at all levels Institutions, Energy, Industrial
understanding of both opportunities of the client organization. Goods, Consumer Products,
and concerns, strengthen trust through Healthcare, Technology, and the
the sharing of resources, and build the This ensures that our clients Public Sector. Our mission in is
right technological infrastructure and achieve sustainable competitive clear to create positive economic,
governance systems. advantage, build more capable social, and environmental impact
“Fulfilling the tremendous promise of organizations, and secure on the continent
online marketplaces relies on the ability lasting results. Founded
of the private and public sectors to in 1963, BCG is a private About the AFRICA CEO
come together to create the right digital company with offices in more FORUM
environment that is designed from the than 90 cities in 50 countries.
outset to bring economic and social For more information, please For the past six years, the AFRICA
benefits for all,” said Amane Dannouni, visit bcg.com. CEO FORUM has been the largest
international gathering of African
About the Center for private sector decision-makers
Customer Insight and financiers. At its previous
edition in Abidjan in March 2018,
Boston Consulting Group’s it brought together 1,500 business
Center for Customer Insight leaders, public decision-makers
(CCI) applies a unique, and investors from Africa and
integrated approach that around the world for two days of
combines quantitative and discussions around the need to
qualitative consumer research transform African champions in the
with a deep understanding face of international competition.
of business strategy and The Forum is organized by Jeune
competitive dynamics. The Afrique Media Group,publisher
center works closely with of Jeune Afrique and The
BCG’s various practices to Africa Report, and by Rainbow
translate its insights into Unlimited, a Swiss company
actionable strategies that lead specializing in the organization of
to tangible economic impact economic promotion events.
for our clients. In the course of

Abyssinia Business Nework ሚያዚያ 2011 / April 2019 27

getting Image Enchanting tourist attractions, unique
2380 Abyssinia Business Nework ሚያዚያ 2011 / April 2019 diplomatic stature and a thriving airliner have
placed Ethiopia, Land of Origins, on top of the
world when it comes to tourism growth.

According to the World Travel & Tourism
Council’s (WTTC) annual review, the country
saw the highest tourism growth in the world
(48.6%), surpassing the global average growth
rate of 3.9% and the African average of 5.6%.
During the period, the sector
supported 2.2 million jobs and contributed
US$7.4 billion to Ethiopia’s economy, an
increase of US$2.2bn on 2017.

The timeless charm of Ethiopia’s natural,
cultural and historical tourist attractions has
been driving an influx of tourists from far and
wide. As the land where mankind, coffee
and the Blue Nile trace their roots, Ethiopia
has always been a fascinating destination for
holidaymakers.
The country’s UNESCO-registered heritages
including the majestic obelisks of Axum,
the rock-hewn churches of Lalibela and
the fortified historic town of Harar, among
others, have always remained tourist magnets,
drawing visitors in droves. And add to this the
magnificent scenery and the unique wildlife
riches, some of which are found in the country
only.

As the Meetings, Incentives, Conferencing &
Exhibitions (MICE) tourism blossoms around
the world, Ethiopia is also uniquely positioned
to reap the benefits, owing to its unique place
in Africa’s diplomatic landscape.

Ethiopia’s capital Addis Ababa hosts African
Union headquarters and the offices of UN-
ECA among others. Addis is the toast of Africa,
and welcomes diplomats and executives from
across the continent and the rest of the world.
With its remarkable safety record and forward-
looking infrastructure boom,
today the city stands among the top capitals in
the world, hosting major regional and global
conferences.

Land of Origins:

The Next Big Thing in Global Tourism

As the main hub of the Pan-African carrier, Ethiopian getting Image
Airlines, Ethiopia also enjoys convenient air connectivity Abyssinia Business Nework ሚያዚያ 2011 / April 2019
with multiple destinations in Africa and the rest of the
world, making travel to the country easier than ever
before. The connectivity options the airline offers to
travelers has made Ethiopia ever more accessible to the
whole world, and has facilitated the influx of tourists.

The airline’s catalyst role has never been more impactful,
especially in promoting tourism, as alluded to by Gloria
Guevara, President & CEO of the World Travel &
Tourism Council concerning the exceptional growth of
Ethiopia’s tourism. “Ethiopia’s Travel & Tourism boom
was one of the great success stories of 2018. It has
exceeded our sector’s global and regional comparisons
to record the highest level of growth of any country in
2018”, Gloria Guevara notes. “This has been driven by
the very strong performance of aviation in the country
and the development of Addis Ababa as a dynamic and
growing regional hub.”

Africa’s largest carrier today spreads its wings to
120 destinations throughout the world, with half the
destinations in Africa. Thanks to Addis Ababa’s strategic
location at the center of the East-West lane and the ever-
expanding service of Ethiopian Airlines, the city has
emerged as the major gateway into Africa surpassing
Dubai.

Besides its wide connectivity and multi-award winning
signature services, the flag carrier’s cutting edge
technologies are adding a definite wow factor that
is enabling the influx of tourists savor the beauty of
the nation and designate the east Africa’s nation as a
home away from home! Ethiopian Mobile App enables
international travelers secure e-Visa within 4 hours and
elevates travelers to a high degree of personalization and
end- to end travel experience through mobile devices.

Global passengers can apply e-Visa and book their
flights, pay online using credit or debit cards, mobile
money, e- Wallet and bank transfer. They can also check-
in and issue boarding pass as well as self-board. Passport
and Ethiopian App suffice all the way to experience

3219

Invest,
Harvest in

Amhara

National Regional State

“Amhara Regional State is not only endowed with As far as agricultural potential of the region is
favorable climate and good soils but also blessed with concerned 1,190,076 hectares of land is favorable
lots of facilities for investors like an international for crop production while 3,951,744 hectares of
airstrip, a state-of-the-art cargo center and a fast land is favorable for livestock development. Over
developing infrastructure. Above all it has a beautiful 6.7 millionhectares of land is favorable for forestry
environment with great potential. Come and convince products, land covered by forest products, favorable
yourself! ” noted Gedu Andargachew, former President for eco-tourism, horticulture and floriculture products.
of the Amhara Regional State. In Livestock sector, Livestock farming which includes
leather & hides, meat processing, dairy farming
Amhara Regional State covers an area of 170,000 square processing, poultry animal feed processing are yet
kilometers with over 20.2 million people live in the another opportunities awaiting investors in the region.
state, of which 56% is between age of 15-60 years. The The region is well known for its immense potential
region receives mean annual rainfall which varies from in apiculture, so is its aquaculture.The annual honey
300 mm to 2,000 mm and annual mean temperatures yield of the region picks up to 7.9 million kilograms
mostly lies between 15-21°C. This is very favorable for along with its noted high quality.
the agricultural sector which is by far most dominant,
accounting 90% of the region’s economy. The total fish catch potential from fresh waters is
Political and macroeconomic stability, competitive estimated at 255,000 quintals per year. Lake Tana
incentive package, market access, cozy operating alone has a capacity of producing 159,000 (62%)
environment, demographic advantage, huge untapped quintals of fish per year. There’s also opportunity
resources and infrastructure are the some driving forces for investment in the construction of aquaculture to
why both local and foreign investors need to invest in the produce fresh water fish for local and international
region. markets.

30 Abyssinia Business Nework ሚያዚያ 2011 / April 2019

getting Image

A total of 568,818.81 hectares of land cultivated with and loss carry forward, and remittance of profit,
different types of forestsas the regional government dividends, principals & interest payments on external
provides land for free for 25 years. The potential in loans and provision of land at competitive lease price.
harvesting natural incense and wild gum is so high,
for instance, 477,907.24 hectares of land covered with The Constitution and the investment law being
products of incense and wild gum, making the region implemented in the region protect private property.
contributes23% of the total products of the country. A foreign investor has the right to make following
remittance out of Ethiopia in convertible foreign
The region’s investment potentials in manufacturing, currency at prevailing exchange rate: Profit & dividends,
including textile and textile products, leather and principals & interest payments on external loans,
leather products, food and beverage, wood products, Payments related to technology transfer agreements,
paper and paper products, chemical products and Proceeds from the sale or liquidation of an enterprise,
pharmaceuticals, Information and communication compensation paid to an investor, proceeds from the sale
Technology, mining and energy are worth mentioning. or transfer shares or partial ownership of an enterprise
to a domestic investor.
The region, in deed, is awe-inspiring tourist destination
in Ethiopia as well as Africa, highly endowed with Fast and sustainable economic growth and development,
historical, natural and cultural heritages. Hence stable economic and political environment, availability
opportunities are in: star designated hotels, lodges, of abundant active and trained labor force, transparent
restaurants, and tour operation. investment policies and continuous government
support, undoubtedly, call for the engagement of
The regional government supports priority areas potential investors to invest and harvest in the region.
through Customs duty exemption, Income tax holiday,

Abyssinia Business Nework ሚያዚያ 2011 / April 2019 31

Siemens to
Stretch
Wings in
Ethiopia

By: MekonnenHailu
(EIC Public Relations Director)

Sub- Saharan Africa (SSA) has recently multinationals as witnessed power- efficient, resource-
been experiencing high economic growth by increased investment in saving technology that helps to
rates, significant government reforms manufacturing, infrastructure, empower African economies.
and a rapidly expanding middle class. agriculture, mining and tourism, The company is now one
Of course, the development prospects for to mention but a few. Still the of the leaders in the digital
SSA remain promising, with real growth country’s market and resource revolution and develops smart
in SSA countries forecasted by the IMF potential remain untapped. mobility solutions to make
to be above 4 percent in 2015, a faster transport system more efficient
pace that for all other developing regions. European Industrial Giant, and digitalize production,
As far as Ethiopia is concerned, starting Siemens has agreed a framework increase output and produce
from dire poverty, as the second-poorest for future energy and transport quality products that give the
nation in the world in 2000, the nation projects with the government company a competitive edge.
has been the miracle economy in the past of Ethiopia. Siemens is a global
decade. World Bank data reveals that the powerhouse in electronics and As Siemens expands its
country has averaged 10.8 percent real electrical engineering providing investments in Africa,
annual growth since 2004 and is expected products, systems and solutions a Memorandum of
to go up about 8 percent this year. across the electrification, Understanding (MoU) has
automation and digitalization recently signed between the
Ethiopia is now working tirelessly to get value chain. In Africa for over Government of Ethiopia and
policy and legislative conditions right to 157 years, Siemens has a rich the company to establish a
ease the business environment and attract history of innovation and social platform for collaboration
more foreign direct investments. development. and long-term cooperation
to address the current energy
As a result, the business environment in As an integrated technology and infrastructure challenges
Ethiopia had recently been improved. company, Siemens has been in Ethiopia - and thereby
Furthermore, the foreign direct playing a constructive role in accelerate sustainable socio-
investment (FDI) flows to East African Africa’s success story. The economic development.
nation has been growing with a number company has rich experience in The MoU was signed byAbebe
of African economies now showing
resilience to various internal and external
shocks.

Nowadays, the East African nation has
been on the investment radar of many

32 Abyssinia Business Nework ሚያዚያ 2011 / April 2019

applying vast experience and Sabine Dell’Omo, Siemens CEO
proven technologies as well for Southern and Eastern Africa
as training and education stated that this milestone agreement
capabilities to help shape the is another step in demonstrating the
future for Ethiopia and its company’s strong commitment to the
people. One of the starting people and government of Ethiopia.
projects affirming our strong She says, “We are here today as we
commitment in the region is have been since 1927, to help achieve
the East Africa interconnector,” affordable and reliable power supply,
said Joe Kaeser, CEO for create jobs, increase access to training
Siemens AG. and develop local skills alongside
local partners.”
Abebayehu, Commissioner of the Siemens, indeed, is currently
Ethiopian Investment Commission, As a giant company in Europe, in
and Mrs. Sabine Dall’Omo, in her helping to increase the reliability fiscal 2018, Siemens generated
capacity as Chief Executive Officer revenue of €83.0 billion and net
- Siemens Southern and East Africa of energy supply through an income of €6.1 billion. At the end
in the presence of higher officials of September 2018, the company
and dignitaries. interconnector being built had around 379,000 employees
worldwide.
between Kenya and Ethiopia.
World Investment Report launched
The roughly 1,000 kilometers- by UNCTAD indicated that East
Africa, the fastest-growing region in
long transmission line will Africa, received a total of more than
7.5 billion USD in FDI in 2017, a 3
It is believed that the MOU transmit environmentally percent decline from 2016. Ethiopia
addresses the country’s energy and absorbed nearly half of this amount,
infrastructure sectors. Other key friendly hydroelectricity from with 3.7 billion USD.
aspects of the agreement include The East African nation which is
financing concepts that will ensure Ethiopia to Kenya. The project the 8th largest economy in Africa
the long-term sustainability of and the second largest recipient
these infrastructure initiatives; and currently supports 200 direct of FDI after Egypt has continued
creating opportunities for local to attract investments especially
upskilling and job creation during jobs in Ethiopia alone and is in manufacturing industries. This
construction and operation. clearly indicates that Ethiopia has
one of the largest infrastructure been on the investment radar of many
multinational companies around the
projects in Africa. world.

Ethiopia’s Growth and The primary goal of this
agreement is to commit to long-
Transformation Plan serves as term partnership between the
European industrial giant and
a catalyst towards realizing its the Government of Ethiopia
to develop, fast track solutions
national vision of accelerated that will enable government to
stabilize and expand existing
and sustained economic growth grid infrastructure, explore
solutions for industrial parks
in order to eradicate poverty and and co-develop microgrid
solutions for remote villages.
increase prosperity. “Siemens can

make a significant contribution

to Ethiopia’s development by

Abyssinia Business Nework ሚያዚያ 2011 / April 2019 33

ማን ልበል አላወኩህም?

በዳንኤል

እሙን በጣም ነው የምወዳት ፡ ሙሉ ህይወቴ ለሷ ብዙም ባይባልም እኔ ስለወደድኩት ለኔ ተውልኝ ። ብቻ
የተመሰረተ እስኪመስለኝ ። የዕሙም መውደድ ግን የውስጤን ምን እንደነካችው ባላቅም ነገረ ስራዬ ሁሉ
ከናፍሯ ላይ ከኔ በተሻለ ነው ። ሆዴ ……… ዛሬ ሙሉ የሚያስበው እሙን ነው ። የኔ እንደዛ መሆን ለእሙ. . . ።
ቀን የት ነው ጠፍተህ የዋልከው ? እንዴት እንደናፈከኝ ሌላው ቢቀር ስለመፈጠሬም የምታቀው ቦታው ላይ ስገኝ
፡ ስትጠፋ እኮ ይጨንቀኛል ። ያነጋገር ለዛዋ ከዜማ ጋር ብቻ ነው ።የትኛው ዘመን ነው እንደዚህ ነገሩ ሁሉ የህሊና
የታጀበ ስለሆነ እንዴት ደስ እንደሚል ። ቀርቶ የዳቦ የሆነበት ? ።

ከእሙ ጋር የተገናኘነው ተቀጥራ በምተሰራበት ከየትም አቅጣጫ ይምጣ በየትኛውም የድምጽ ቃና
ሆቴል ውስጥ ለመዝናናት በሔድኩበት ሰዓት ነው ። ብቻ የሷ ስም ይሁን እንጂ ሁሌም መልሷ ወዬ ነው ።
የመጀመሪያ ቀን ያየኋት በዩኒፎርም ሲሆን ሆኖም ግን ታድያ ወዬ ያመጣብኝ ጣጣ ። የካሮት እድገት ሁኖብኝ
የለበሰችው አጭር ቀሚስ ልዩ ውበት ሰጥቷታል በደንብ ይሄው ዓመት አስቆጥሬያለሁ ከወዬ ጋር ።
እንዲታይ የሰውነት ቅርጿ እድሉን አመቻችቷል ። እሙ
ብዙም ቆንጆ ባትባልም ሆኖም ያላት የሰውነት ቅርፅ በመሃከል በተዋወኳት ሶስተኛ ወሬ ይመስለኛል
አቤት ፡ ወዴት ? እንድትል በሩን ክፍት ነው የሚያደርግው በሳምንቱ የመጨረሻ አንዱ ቀን ልጋብዛት ፈለኩና ምን
። ዓይኖችህ ማረፍ እስኪያቅታቸው ድረስ ነው ማድረግ እንዳለብኝ ከራሴ ጋር ማውራት ጀመርኩ ።
ሰላማቸውን የምትነሳቸው ። የአፍንጫዋ አቀማመጥ እንዴት ግን ትወደኛለች ስለ የመጀመርያ ጥያቄ ለራሴ

34 Abyssinia Business Nework ሚያዚያ 2011 / April 2019

ጠየኩ ። ለምን አልጋብዛትም ብዬ እራሴን ደፋር አደርኩት ተመለሰች ። ደስታዬ ወደር አልነብረውም ። ወደ ቤት
። አድሬስዋን አንድትሰጠኝ ጠይኳት ከቢል ጋር አብሮ ለመሄድ በጣም ነው የቸኮልኩት ። እሙ ሂሳብ መጣ
መጣልኝ ።እስከምደውል እንዴት ሰዓቱ ይሂድልኝ የአመት እስክትወስድ አላስቻለኝም አቁነጠነጠኝ ። እሙ
ያክል ነው የራቀብኝ። መድረሱ አይቀርም ረፋዱ ላይ ሳትመጣ መሄድ ስለሌለብኝ በተቻለኝ አቅም ጠበኳት
ደውልኩላት ። ከእንቅልፏ እየተንሳች ነበረና ድምጿ ትንሽ እሙ ግን ልትመጣ አልቻለችም በአይን ምልክት
ወፈር አለ ቢሆንም ግን ለኔ የትኛውም ይሁን ማናገሬን ሰጥቻት ወጣሁ።
ብቻ ነው ያሰብኩት ሆኖም ግን ስወጣ ልደውልልክ ብላ
ብዙ ሳታዋራኝ ስልኩን ዘጋችው። የሌሊቱ ርዝመት ለኔ ለመጀመሪያ ግዜ ነው። እሙን
ላገኛት ስለሆነ ብዬ ግን በትግስት አሳለፍኩት የማይደርስ
ስልኬ በጮኽ ቁጥር የሷ እየመሰለኝ እደንግጣለሁ የለም ሰዓቱ ደረሰ ደስ አለንኝ ። እሙ አልመጣችም ፡
። የሷ ስልክ ግን የውሃ ሽታ ሆነ ። አላስችል አለኝና የሴት ነገር ስትቀባባ ይሆናል ብዬ 30 ደቂቃ ጠበኳት
ደውልኩ እዛ እንገናኝ አለችኝ የስራ ቦታዋ መሆኑ ነው። አልመጣችም ሰዓቱ መቁጠሩን ተያይዞታል 45 ደቂቃ
ሰዓቴን ጠብቄ ሄድኩ ። ሰላም ነው ኣባት ብላ ሞቅ ባለ አለፈ እሙ አሁንም አልመጣችም ። ስልኳላይ ልሞክር
ሰላምታ ከሰጠችኝ በኋላ ምን ላምጣልክ ስትል ጠየቀችኝ ብዬ ስሞክር ስልኳ አይሰራም ምን ሁና ይሆን ብዬ
ቡና አልኩ ካፌ የመጣው እሱ ስለነበር ።የፈለኩት ግን ተጨነኩ ። ደጋግሜ ስልኳ ላይ ደውልኩ ዝግ ነው።
ቡና አልነበረም ። እሙን ነበር ውስጤ የፈልገው ። እሙ 1፡20ደቂቃ ያክል ከጠበኳት በኋላ ወደመጣሁበት
ፈጥና ቡናውን ይዛልኝ ስትመጣ ያለኝን አቅም አስባስቤ በመጣሁበት እግሬ ተመለስኩ ። አላስችል ስላለኝ
ውጭ ምሳ ልጋብዝሽ ፈልጌ ነበር ስል በፍርሃት ጠየኳት የመጨረሻ ብዬ ስሞክር ስልክዋ ሰራ ደስ አለኝ ።
የእሙም መልስ ፈጣን ነበር ። ምንም ችግር የለውም እየተነባተብኩ እሙ በሰላም ነው ብዬ ጠየክዋት
የት ስትል ቶሎ ለመመልስ ጠየቀችኝ ፡ አንቺን የተመቸሽ …………. የእሙ መልስ ግን ተመሳሳይ ነበር ይቅርታ
ቦታ ……………..ሳሮን 7ሰዓት እንገናኝ ብላኝ ወደ ስራዋ ማን ልበል አላወኩህም ? ።

Abyssinia Business Nework ሚያዚያ 2011 / April 2019 35

Easter and
Holiday
Blues?

By: George Yehish

Accompanied with longer abstinence from proteins and getting Image
animal products to fasting Easter in Ethiopia is celebrated
with big feast and lots of cultural and religious activities • The holiday season brings with it high
that will enlighten visitors. Tradition holds that people in expectations for happiness and merriment. People
Ethiopia invite friends and family over and eat together. who don’t get quite as excited about decorations,
The celebration involves celebrating in gathering to holiday music and gift-giving might experience
commemorate Jesus’ resurrection where the public show confusion or guilt about the disparity between
love to one another. Regardless of one’s religious affiliation, their true feelings and how they believe they
the holiday season often inspires feelings of warmth, joy, and are supposed to feel. This phenomenon, though
belonging. But for some people, this time of can evoke some common, can cause individuals to dread the
significant Psychological feelings of loneliness, stress and holidays before the season even officially starts.
anxiety. The holiday blues are a real phenomenon, but they
are likely to have different effects than you might think. • The other reason to be believed is, everyday
feelings of loneliness are magnified during a
Many of us tend to attach meaning to the holidays that adds time commonly associated with family, love and
extra pressure to our experiences and can set us up to feel togetherness especially in a collective society like
disappointment, anxiety, or sadness. So what are some of Ethiopia. The holidays can be especially hard on
the reasons we get down at the close of the holiday such as those who lack a significant other, or experience
Ethiopian Easter and how can we take a proactive approach geographical or emotional separation from family,
to staying positive? friends and loved ones.

There are plenty of reasons why people report greater
feelings of sadness as the holidays approach. Here are a
few key reasons behind what have come to be known as the
holiday blues:

36 Abyssinia Business Nework ሚያዚያ 2011 / April 2019

• The holidays can be a painful reminder of happier Any remedy for Holiday
times for those going through periods of struggle. People Blues?
with sad holiday memories will often be reminded of
troubled times, which can lead to feelings of sadness. For those already feeling the gloom of a
Because the holidays are a time of reflection for many, they stressful holiday season, here are a few
will also increase feelings of loss within people longing tips to help stay positive:
for beloved family members and friends who have passed
away. • Help others: Volunteering to
assist or give to those less fortunate
• The holiday is a painful burden for people who during the holidays can boost spirits.
are without the financial resources to buy stuffs for the
ceremony. • Organize time: Create a
schedule, and stick to it, and avoid
• In addition to the demands of work, family and feeling overwhelmed with errands.
everyday life, the holidays bring added stress of shopping,
cooking, hosting house guests, traveling, and attending • Seek sun: Getting at least 20
office parties and family reunions. All the extra activity minutes of sunlight per day can help
may contribute to feelings of fatigue or frustration. battle feelings of depression.

• Create a budget: Before hitting
the mall or grocery store, determine how
much money can be spent without going
into debt.

• Take a break: Leave time aside
to read a book, get a massage or listen
to soothing music and put aside the
stressors of the holiday season.

• Talk to Psychologist: Talking to
a Psychologist and seeking advice might
be very helpful to overcome holiday
blues.

“ Wish you
to have a
marvellous
Easter! ”

George Yehish (Clinical Psychologist, MA)
[email protected]

Abyssinia Business Nework ሚያዚያ 2011 / April 2019 37

Celebrating

The Untapped Po

A mega event dubbed as Champion of Even though African is a Tourism is recognized as one
Tourism Olympiad - African Tourism Week very lucky continent having of the basic sectors with the
Celebration is to be held on 1-3 June 2019 attractive and amazing natural greatest potential to contribute
in Addis Ababa. and social heritages, the to the economic generation
expected general Tourism of the continent particularly
Africa is a continent owning many natural and activity is not satisfactorily through the creation of jobs and
social resources which has to be promoted conducted focusing on foreign currency earnings. Such
and commercialized for the rest of the whole exploiting every potential carefully prepared tourism
World. NEPAD (New Partnership for African and capacity from the sector promotion plan, strategy and
Development) is working to enhance the addressing all African application play a great role in
capacity of African Tourism and has launched Countries. But it is clear that the general activity of Tourism
its Tourism action plan back in 2004 with the level of tourism sector Industry and its progressive
a view developing sustainable tourism is gradually increasingat a benefit throughout the continent
throughoutthe Continent. continent level. level.

38 Abyssinia Business Nework ሚያዚያ 2011 / April 2019

Theproject ; moreover, holds main tourism functions such as
generaltourism for Peace and Unity, tourism for investment and
tourism for common prosperity, among others.

African continent is the champion of this Tourism Olympiadin
a broad sense through the New Partnership for African
Development (NEPAD)tourism strategic action plan focusing on
tourism marketing and Investment for sustainabledevelopment
throughout the Continent.

So the Tourism Olympiad is gearing towardspromoting and
marketing African tourism for the benefit African peoples by
whicha common slogan and song in the Tourism Olympiad:“One
Africa ,One Continent ,One Spirit’’will be chantedby African
nations.

The Celebration will be conducted every year in the Capital city
of Africa and Ethiopia, Addis Ababa for it is the third city next
to New York and Geneva. Taking turns, all capitals of African
nations will celebrate this event especially linking with African
Cup of Nations a week before the play kicks off.

This event is believed to create a good opportunity to promote
the continent’s historical, natural, cultural, medical, conference,
sport and other sorts of potentials which will have vast Media
coverage both at local and International levelsin order to
buildpublicawarenesson the African untapped tourism potential.

getting Image

otential

This event mainly aims at promoting and Event organizers can be contacted via
marketing the African Tourism and creating a
reliable and confidential relationship between E-mail……[email protected]
African Countries in Social, cultural and Website … w.w.w.africantourismweek.com]
other significant aspects.

The event has been established as a big project
stemming from the idea and continental
common interest that enhancing the level and
capacity of the continent tourism potentials is
so crucial in order to have better international
attention and gradually developing a very
strong and sustainable high economic
resource in the tourism Industry.

Abyssinia Business Nework ሚያዚያ 2011 / April 2019 39

40 Abyssinia Business Nework ሚያዚያ 2011 / April 2019

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

Abyssinia Business Nework ሚያዚያ 2011 / April 2019