Abyssinia Business Network April 2019 by Abyssinia Business Network / ABN /

Hooray!

Easter @ Last

Ethiopia 40.00 birr , USA 5.00 $ , Europe 5 .00 Euro , South Africa 25.00 Rand , Kenya 500 Sh ,UAE 10.00AED

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Abyssinia Business Nework ሚያዚያ 2011 / April 2019

2 nd YEAR NO 17 ሚያዝያ 2011 APRIL 2019

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

Editorial Team

MANAGING DIRECTOR Daniel Tiruneh

MANAGING EDITOR Getachew Alemu

EDITOR IN CHIEF Aklile Tsige

CONSULTANCY Zeima Ahmed

STAFF WRITERS Mekonnen Hailu Ketema Kebede Chacha Hiwot Salelew

Teshome Fantahun

REPORTER

Josephine Wawira Kamba Anthony Joseph Oduha

Designer Daniel Tiruheh Photo Sol Image

Distribution Hailu Abesse

Partners

Ethiopia Culture And Tourism Addis ababa police Commission Ethio Great Investment Support Service PLC

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Abyssinia Business Nework ሚያዚያ 2011 / April 2019

ABN : EDITORIAL Primarily focusing on business and economic development, our monthly magazine, Abyssinia Business Network /ABN/ has been express its commitment to disseminating fair, accurate and timely information to the general public in general and to the business community in particular, since its first publication. Well-known and much-trumpeted that Ethiopia is executing wide ranging and stretched plans to put itself among middle income earning countries of the world by 2025. Having realized double digit economic growth for 14 years in a row, it has joined the few countries of the world with the fastest economic growth. The government has widely involved the public in the implementation of the first Growth and Transformation Plan (GTP 1) that enabled to score an annual average economic growth of 10.1%. This, according to Ethiopian government sources, is more than twice the performance of the economies of sub Saharan African countries with similar level of growth. In the last few years there has been an economic turn down caused mainly by on-and off political and social unrests in many parts of the country; nevertheless, due to relentless efforts exerted by the Government, foreign investment flow appears to be very promising while globally renowned foreign companies show up to invest and harvest in most of the newly inaugurated industrial parks across the country. ABN has strongly analyzed that the engagement of local and Ethiopian-born Diasporas in those parks is of very insignificant. Hence, we are echoing the call of the Ethiopian government that the investment opportunity to partake in the various industrial parks is still cozy, open and lucrative. Some of the parks are awaiting potential investors, either to participate individually or jointly.

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CONTENTS

Hooray! Easter @ Last

Equity Bank Eyes Ethiopian Market

MAKING DIGITAL PLATFORMS

Land of Origins :

Invest, Harvest in

መልካም በዓል “ Wish you to have a marvellous Easter! ” Abyssinia Business Network

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

Hooray!

Easter @ Last By Aklile Tsige Christians are marking one of the most significant seasons in their calendar: the time to commemorate the death and resurrection of Jesus Christ. Some of the ceremonies associated with this time are joyful. The Easter holiday concludes the “Passion of Christ,” a series of events and holidays that begins with Lent a 40-day period of fasting, prayer and sacrifice and ends with Holy Week, which includes Holy Thursday which isthe celebration of Jesus’ Last Supper with his 12 Apostles. Good Friday- a day on whichJesus’ crucifixion is observed, followed by Easter Sunday. However, Easter falls on a different date each year.Easter Sunday and related celebrations, such as Ash Wednesday and Palm Sunday, are considered “moveable feasts,” although, in West which follows the Gregorian calendar, Easter always falls on a Sunday between March 22nd and April 25th. In Eastern Orthodox Christianity, which adheres to the Julian 04

calendar, Easter falls on a Sunday between April 4th and May 8th each year.while Easter Sunday serves as the start of the season of Pascha (Greek for “Easter”), which ends 40 days later with the holiday known as the Feast of the Ascension. In Eastern Orthodox Christianity, Easter rituals start with the Great Lent, which begins on Clean Monday (40 days prior to Easter, not including Sundays). The last week of Great Lent is referred to as Palm Week, and it ends with Lazarus Saturday, the day before Palm Sunday which Palm marks the beginning of Holy Week, which ends on Easter. Ethiopian Easter, Market Accompanied with longer abstinence from proteins and animal products to fasting Easter in Ethiopia is celebrated with big feast and lots of cultural and religious activities that will enlighten visitors. Tradition holds that people

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

getting image in Ethiopia invite friends and family over and eat together. The celebration involves celebrating in gathering to commemorate Jesus’ resurrection where the public show love to one another. If you enjoy festivity and big celebration Ethiopia’s a place to be. It has great destinations and celebrations that will stay in your mind forever. Get your hands on the festivals, sights and the lip-smacking tastes of Ethiopia. The country mixes festivity and fiesta aligned with best destinations and mouthwatering dishes. Easter is full of

getting image getting image charming holiday vibe during the day and night time with so much outdoor and indoor activities. Handicrafts, clothing, leather shoes and bags price go down significantly offering luxury items without breaking the bank. It takes you deep into unforgettable experiences revealing its ancient wealth and traditions. Even if you have seen the world and experienced so much great in the globe, Ethiopia will amuse you with so much of its breath-taking destinations Travel agencies

observed. This time of year, holiday markets are springing up all around Addis Ababa and other towns of regional states, from church fairs to school bazaars to high-end artist markets. These markets highlight fun finds that feature the handiwork of artisans from both near and far. Many have extras like food and live entertainment, and some even have a man wearing toys for sharing holiday wishes! Take this opportunity to get into the holiday gifts and find one-of-a-kind gifts for loved ones, too.

The Annual Easter Market held every year at the famous Addis Ababa Exhibition Center feels more like a festival rather than a holiday mart. Visitors find handcrafted items and modern household furniture from various parts of the country and across the world. The Addis Ababa Exhibition Centre has served as a welcome diversion for many over the past two decades. With over 400 exhibitors, including foreigners-

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

getting image

the Easter Bazaar at this site is one of the great opportunities for retailers to make a good profit prior to the holiday. “I don’t see any difference here except getting all the items in one place,” Selam said. “Everything, the price, the product, has no difference with other outlets outside the bazaar.” The holidays can be a joyous time of year with friends and family. But this season can also be stressful, as you try to find the perfect gift for those you love. 06

“

I don’t see any difference here except getting all the items in one place,” Selam said. “Everything, the price, the product, has no difference with other outlets outside the bazaar.

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

”

Whether you’re looking for arts, crafts, foods, or gift certificates, the exhibitors believe local gifts make the best gifts! Many recommend setting aside at least an hour to wander around the booths, since there is so much to choose from! Also, visitors shouldn’t forget their reusable shopping bags. If you take your kiddos to the center, be sure to stop to take a photo with a dinosaur’s model toy! Packed your pocket with sufficient amount of bucks? Don’t worry! You can offer your kids every little thing ranging from cotton candy, bubbles, to electronic toys and sweets.

to the exhibition to buy stoves, clothes and canned foods. “I don’t see any difference here except getting all the items in one place,” Selam said. “Everything, the price, the product, has no difference with other outlets outside the bazaar.” Daniel Kassa, a clothing retailer, is one of the participants who enjoyed a spike in sales during the current holiday. He believes that offering discounts is one way to attract more customers in stricter economic conditions.“I put a 20-30pc discount on each item to appeal to more customers,” he explains.

And if you stick around until Saturday evening, the very eve of Ethiopian Easter, you’ll be enjoying the mesmerizing contemporary music staged by renowned Ethiopian vocalists. AsfawAyele, owner and General Manager of Tewedaj Plc., has participated in holiday exhibitions held in Addis Abeba for the past seven years. He sells kids apparels, shoes and adult clothes in his shed located inside the first pavilion. The bazaar gives visitors, such as SelamMengesha, 30, a platform to meet their demands.Selam has been attending exhibitions for more than a decade. Now, three years after getting married, she comes

The Addis Ababa Millennium Hall is yet another venue that has provided holiday exhibition service where items such as household furniture, modern apparels and shoes, electronic materials and children’s entertainment are available. This 21-day-exhibition hosted by JorkaEvents, according to a visitor, has become a rendezvous for many Ethiopians at home and the diaspora. Here also visitors can have access to enjoy music show and dance with popular and veteran Ethiopian singers like Dawit MeleseShewandagnHailu,Ts egayeEshetu, and many more artists, everything in the center get your holiday season off to an unforgettably festive start. Many witness that this center is not widely visited like the former one; this may attribute to the location of the center and low-level of promotion to the

event organized. Others strongly argue that as the center doesn’t accommodate all-in-one sort of bazar, shoppers don’t have little interest to visit. Nonetheless, the Easter exhibitions, being held at the Addis Ababa Exhibition Center and the Addis Ababa Millennium Hall as well as the bazars held in various malls are good opportunity for some businesses to increase sales and outreach. Ethiopian Easter Cuisine Ethiopian Easter is mainly characterized by the hustle and bustleatmarkets where the laities buychickens and oxen to be slaughtered and turned into the famous chicken stew,‘dorowot’ and raw beef respectively. It could; therefore, be named as Chicken-Beef Holiday. This super flavorful Ethiopian chicken stew with bell pepper and baby spinach will fill everybody’s house with an amazing aroma as the delicious sauce thickens on the stove top. One bite of the tender chicken and one will be in love with this dish! “ Walking through the streets of Addis Ababa, it’s not uncommon to see groups of people gathered around restaurant tables feasting on chunks of raw beef or goat meat.” The chicken is cooked until it is very tender and falls apart making the dish even healthier by throwing in some bell peppers, cooking them until they are crisp tender, and stirring in some baby spinach to wilt.

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

getting image Abyssinia Business Nework ሚያዚያ 2011 / April 2019

A central ingredient of dorowat is Berbere, a fiery, bright red and flavorful Ethiopian spice blend. It is best made fresh using whole spices that are toasted and ground for maximum flavor. Mixof the whole and ground spices are also used in the long dorowatmaking process.

meat from which small bites are sliced with a knife and dipped in various sauces, like Mitmita a powdered hot chili mixed with spices or Awaze, a kind of chili paste, and “kifto”, finely chopped beef mixed with spiced Ethiopian butter and served with Awazeor fresh crumbled cheese.

Traditionally Doro Wat is served with an Ethiopian flatbread called injera. It’s kind of a spongy pancake made with teff flour (a grain indigenous to the area), and the batter is left to ferment for up to 4 days before it’s used. The injera is used in place of an eating utensil and is used to scoop up the chicken stew.

Many people tend to tell that raw meat is a hearty meal that energizes them and refreshes their bodies, as for the risks associated with eating uncooked meat, which include exposure to tapeworms and dangerous bacteria like salmonella and E-coli, most just choose to ignore them.

This recipe is pretty amazing because it is a super healthy dinner dish that is the ultimate comfort food, but also super delicious!

However, the wars have been over for a long time, yet Ethiopians continue to consume raw meat. It has become a sort of national dish consumed by all ethnic groups and followers of all faiths, leading some scholars to describe it as a

Walking through the streets of Addis Ababa, it’s not uncommon to see groups of people gathered around restaurant tables feasting on chunks of raw beef or goat meat. Although particularly popular on holidays like the Ethiopian Easter, a lot of people consume raw meat virtually every day. The most popular raw meat dishes served in Ethiopia are “teresiga”, literally “raw meat”, long strips of

“transcendental national dish”. The Ethiopian Easter vibe is fully featured by consecutive spiritual and cultural rituals and festivities, with colorful and exquisite public attire, unique cuisines, and most importantly, shopping at various exhibitions centers and malls. Abyssinia Business Nework ሚያዚያ 2011 / April 2019

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 crucial section of the economy made up of firms and institutions that provide financial services to both commercial and retail customers. Thescope and growth of the economy largely depends on the strength of its financial sector. The stronger the financial sector, the healthier the economy. In order for an economy to remain stable, it needs to have a healthy financial sector. There is no question that this sector advances loans for businesses so they can expand, grants mortgages to homeowners, and issues insurance policies to protect people, companies, and their assets. It also helps build up savings for retirement and employs millions of people. 10

The financial sector generates a good portion of its revenue from loans and mortgages. And these gain value in an environment where interest rates drop. When rates are low, the economic conditions open up doors for more capital projects and investment. Hence, the financial sector benefits and ultimately resulted in more economic growth. One year has already passed since the country started a new reform in every sector. Lots of changes have been observed within a short period of time. Political, economic

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

and societal changes have been witnessed inseveral directions despite some socio-political unrests and instability in some parts of Ethiopia. The reform has already attracted the attention of foreign companies. Taking this fact into consideration, regional lender Equity Bank is looking for investment opportunities in Ethiopia as part of its push to become a Pan-African bank. “We are focused on Ethiopia because that market could possibly open in 2020 or 2021.The entry strategy is through acquisition given that it is a big market. In big markets, you enter by acquisition,”

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 mineralrich country in 2015.

MrMwangi,Bank’s representative said. Equity’s interest in Ethiopia, Africa’s second-most populous nation with more than 100 million people, is informed by a wave of reforms that Ethiopian leaders have put in place to open up an economy that has, for long, been under state control. At the present time, Ethiopia has 18 licensed commercial banks, of which Commercial Bank of Ethiopia and Development Bank of Ethiopia are state-owned

financial institutions. In 2015, the National Bank of Ethiopia increased the minimum paid-up capital for banks from 500 million ETB to 2 billion ETB. Banks are expected to comply by June 2020. In 2016, the Eastern Africa nation made a landmark decision to relax the restrictions on the licensing of foreign financial institutions to operate in the country, presenting a huge growth opportunity both for regional and global banks.As of mid-last year, foreignbanks were still not allowed to provide financial services in Ethiopia and the market remained closed to foreign retail banks.

In 2015, Equity shareholders approved a Ksh20 billion ($200 million) new capital injection to drive the lender’s ambitious expansion, but in early 2016 the bank’s board suspended the program to consolidate its regional business and restructure underperforming subsidiaries into moneymaking ventures. All of Equity’s regional subsidiaries, save for Tanzania, are now profitable.In 2018 the subsidiaries contributed 15 per cent of the bank’s overall 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

MAKING

DIGITAL PLATFORMS WORK FOR DEVELOPMENT

By staff writer

Digital platforms create new opportunities for companies of all sizes to engage in trade. They can lead to efficiency gains through lower transaction costs and reduced information asymmetries supported by rating systems. Other benefits include lower consumer prices, increased market access, more competition, better use of underutilized resources and increased flexibility for the providers of services. However, gains are not automatic, and there are growing concerns over the rising market power of certain platforms and the related implications for competition, data protection and ownership, consumer protection and taxation and employment policies. Economic policies and regulations will need to maximize the benefits while at the same time minimizing the costs of digital platforms

Electronic commerce in the digital economy landscape Digital platforms are key in the evolving electronic commerce (e-commerce) and digital economy landscape. Their main characteristics include the provision of infrastructure to intermediate between 12

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UNCTAD different users; the reliance on network effects, as more users beget more users, leading to monopolistic trends; and the use of cross-subsidization. The most important value of such platforms stems from the data extracted from users that can be further analysed, used and monetized. Data have become a valuable extractable resource in the digital economy. By reducing transaction and search costs, digital platforms enable those offering assets or services to connect more easily with those wishing to use or consume them. This has created potential opportunities for new trade types (in digitally traded products, services and tasks) and for more traditional trade using e-commerce and other online platforms to better match buyers and sellers and to make products more visible. Many platforms provide access to free or paid services via the Internet

to connect users, buyers and sellers, such as services related to logistics, payments, market research, trade compliance, market intelligence data, advertising, refunds and dispute resolution. Digital platforms can allow for a more efficient utilization of physical assets and time. Often accessed through mobile applications, they aggregate and bring together supply and demand in ways that were not possible before. Digital platforms can also help to empower women entrepreneurs. One way of illustrating this new digital platforms landscape is shown in the figure. Digital platforms are divided into two groups: profit-oriented and nonprofit- oriented. The size of non-profit-oriented platforms is likely to be marginal compared with profit-oriented platforms. Profit- oriented platforms can

UNCTAD

also be subdivided depending on their main business focus. Some examples of the different categories are provided. As some platforms are multipurpose, they may appear in several places. The role of electronic commerce platforms in developing countries There are different ways for microenterprises and small and medium-sized enterprises to gain an online presence to market their goods and services to potential buyers in their own country or in foreign markets. Participation in online platforms may be more useful for smaller firms that compete in specific, well-defined market segments, such as niche trading in tourism and in value added food products. Different options vary in terms

of resource requirements, flexibility and the need for in- house skills and capabilities. One option is to use third-party online marketplaces. Some provide a full range of services payment processing, customer service, shipping, return processing and delivery while others act mainly as an online forum for buyers and sellers to meet; transactions are carried out offline. The primary focus of these marketplaces may be business to business, business to consumer or consumer to consumer.

They often specialize in certain types of products, such as physical goods, digital products or information and communications technology-enabled services. The geographical focus of such marketplaces is also important. International online marketplaces may be open solely to international sellers, to international buyers, or both. In countries with expanding e-commerce markets, domestic and international platform providers often compete head to head.

Another option is to set up a standalone e-commerce site. This can be done, for example, by adding an e-commerce function to an enterprise’s existing website, by using a software-as-a-service e-commerce solution with a package of what is needed to operate e-commerce or by building a customized e-commerce site. Benefiting from economies of scale and network effects, a few major online marketplaces have captured significant parts of the overall market. Leading e-commerce platforms include the Alibaba Group, Amazon, eBay and Rakuten. The development of a local e-commerce industry can provide convenience for residents through shorter shipping times, flexible payment options, relevant products and local language interfaces. Other potential advantages domestically may include more linkages with local industries, reduced reliance on imports and greater openness

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

to support exports. E-commerce platforms that have emerged in developing economies include Jumia in Africa; Flipkart, Lazada and Souq in Asia; and MercadoLibre in Latin America.

are targeting the domestic market, enabling consumers to browse and order goods or services online. More research is required to understand the income and employment effects of local e-commerce platforms.

The division between local and foreign platforms is becoming increasingly blurred. Many domestic platforms may be unable to compete with international platforms. In addition, once domestic e-commerce platforms achieve a certain scale, they often become targets for acquisition by global players. For example, recently,

Policy implications

Walmart has acquired Flipkart, Alibaba has acquired Lazada and Amazon has acquired Souq. Due to the existence of network effects, local platforms may not become profitable until they reach a critical mass. If only 2–3 per cent of consumers in a country buy online, it may not be worthwhile to invest in digital platforms. Companies may need to wait until the market exhibits some growth. However, with fast market growth expectations, some firms may temporarily accept low or negative profitability to reap firstmover advantages. In some developing countries, the absence of global platform providers creates scope for local players. For example, in sub-Saharan Africa, various e-commerce solutions have been developed to facilitate commerce over feature phones. There are thousands of e-commerce startups throughout the continent, but only a few have reached significant scale. Many new e-commerce payment gateways have also cropped up. In various low-income developing economies, new e-commerce sites 14

The growing use of digital platforms has economic, social and political impacts. Policymakers face challenges in different policy areas, including the following. 1. Competition and consumer protection Winner-takes-all dynamics are typical in platform-based economies, where network effects can generate major benefits to first movers. Whoever controls the platform also controls the distribution channel, giving the dominant platform (and data) owner considerable market power. Digital platforms are transforming markets and competition. If they evade some of the regulatory requirements that traditional businesses need to meet, they may be perceived as providing unfair competition. The digital platform environment may lend itself to potential anticompetitive practices. As a result of network effects, platforms may gain market power and could abuse their dominant position, for example by imposing exclusivity arrangements on their 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

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

€4.34 billion for breaching European Union antitrust rules.3 Finding the appropriate responses to deal with possible anticompetitive practices in the digital economy will become increasingly important. Consumers have benefited from digital platforms through new and better-suited offers, lower prices and more pertinent information. Yet the lack of face-to- face transactions entails greater risks regarding disclosure and transparency, data protection and the applicable laws and responsibilities of platforms and peer providers. As stated in the United Nations Guidelines for Consumer Protection, member States should ensure a level of protection in e-commerce that is “not less than that afforded in other forms of commerce,” which also applies to digital platforms. 2. Data protection and privacy The digital economy relies increasingly on the generation, storage, processing and transfer of data, both within and across national boundaries. Data access and analysis are becoming strategically important for the competitiveness of companies. With regard to the use of digital platforms, there are concerns over how to harness data flows while addressing concerns related to privacy and security. Policymakers need to strike a balance between the need for companies to collect and analyse data for innovation and efficiency gains and the concerns of other stakeholders

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

with regard to security, privacy and the movement and ownership of data. The current system for data protection is fragmented, and national data policy and legislation has not yet been developed in many developing countries. Efforts to promote convergence and ensure compatibility between different international initiatives are needed. 3.Taxation Policymakers in both developing and developed countries face the challenge of taxation with regard to the digital economy. Reliance on digital platforms may weaken the international tax concept that allocates jurisdictional tax claims over profits of multinational companies based on physical presence. It raises issues such as enforcement, where to tax non-

resident e-commerce businesses, how to assess intragroup transactions, how to classify digital goods, how to identify taxpayers and where and how to collect consumption tax. Moreover, the digital economy could enable more tax planning and erosion, which reduce the availability of domestic resources for development. Finding ways to address related concerns are of relevance to all countries. Digital platforms, in a context of closer international tax cooperation, could facilitate enforcement, by reducing the number of actors involved in taxable transactions and facilitating monitoring and traceability.

platforms. This is creating new income-generating opportunities for people in developing countries who have adequate connectivity and relevant skills. Such platforms enable many professionals to sell their services to clients abroad. Annually, some 40 million people access such platforms, looking for jobs or talent. At the same time, the fragmentation of the production process and a large oversupply of jobseekers on such platforms may weaken their bargaining power and accentuate tendencies towards a race to the bottom in terms of compensation and other working conditions. Policies and regulations 4. Employment and working need to be designed to enable this conditions expanding segment of the economy to ensure the provision of quality The evolving digital economy has and decent jobs. been accompanied by the rise of trade in tasks mediated by online labour Digital platforms match tasks

UNCTAD 16

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U N C T A D

across the entire skills spectrum. They typically favour certain types of contracts (freelance and contract work rather than regular employment). Workers with high levels of social protection may find themselves in competition with workers in the domestic market or abroad with lower levels of social protection. This has implications for how benefits, health care and pensions are organized, and for the provision of training and education. Moreover, as net benefits from the reliance on digital platforms can be unevenly distributed, the role of redistribution policies should be explored.

with the African Union, the European Union and partners of the eTrade for all initiative, and held from 10 to 14 December 2018 – examined ways of enhancing the readiness of countries in Africa to trade online and digitize their economies. The Nairobi Manifesto on the Digital Economy and Inclusive Development in Africa charts a course for countries in Africa, with policy recommendations in the following nine critical areas: e-commerce readiness assessment and strategy formulation; information and telecommunications technology infrastructure and services; payment solutions; trade logistics – transport and trade facilitation; legal and regulatory frameworks; e-commerce skills development; access to financing; e-commerce and women’s empowerment; and measuring e-commerce and the digital economy.

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 developmentoriented 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

Safaricom, Vodacom

Eye

Ethiopia By Staff Reporter (Nation)

If all goes as planned, sooner than later, Kenya’s leading telecom giants, Safaricomand another telecom, Vodacom will be operational in Ethiopia. Safaricom and South African telecom giants, Vodacom, who own majority shares in the Kenyan network, have already been in private negotiations with top Ethiopian government officials. But much as the talks are in high gear between the two parties, opportunities seem not to be so clear yet, especially regarding the strict investment laws in Ethiopia. All new parties may need to acquire additional licenses from the Ethiopian government that runs the leading Ethio-Telecom with over 60 million subscribers. Vodacom has been eyeing the Ethiopian market for years to diversify its earnings, which rely heavily on the SA market. In 2013 it opened an office in Ethiopia and secured a value-added service 18

licence to provide all services other than standard voice calls. Safaricom wants to use most favored nation status given to Kenya. However, Vodafone is majority shareholder of Safaricom; they may not qualify as a fully owned Kenyan company. Ethiopia, the East African nation of 105-million people is Africa’s most populous country after Nigeria, and has one of the most closed and controlled economies on the continent. Vodacom has operations in Mozambique, Lesotho, the Democratic Republic of the Congo, Tanzania and Kenya. Kenya’s Safaricom recently took its M-Pesa brand global after partnering with Western Union that has now seen users send and received money in more than 200 countries. Started 11 years ago as a basic service to transfer money via mobile phone to cater for Kenyans without access to the formal banking network, M-Pesa has evolved into a fully-fledged financial service, offering loans and savings in conjunction with local banks, as well as merchant payments services.

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

Much as Safaricom, that is partly owned by Vodacom and Vodafone, has 30-million subscribers, its taking of the M-Pesa deal in Ethiopia will offer it a real competitive advantage, but amidst allegations of lobbying and sidelining of local operators in Ethiopia. Hopes are already high that M-Pesa would help transform Ethiopia’s economy further, but the local operating partners are demanding for a “leveled playing field.” According to latest details, Vodafone will license the use of the M-Pesa brand to Ethiopia’s leading bank, Commercial Bank of Ethiopia (CBE), while Safaricom will host the servers in Nairobi, Kenya. Ethiopia’s state telecommunications monopoly, Ethio Telecom, will carry the service. Now local companies such as M-Birr (Birr is Ethiopia’s currency), Dashen Banks’ Amole, Hello Cash, that have always had the desire to achieve the same sort of ubiquity, bringing financial services to people who have never held a bank account in the process are already crying foul. According

reports,

Awash

Bank is ready to work with CBE (Commercial Bank of Ethiopia). It is anticipated the signing of the MOU will be in April. The contracts will be ready by end of April then technical work by August and eventual launch by September. Awash Bank wants to be one of the top 10 largest banks in East and Central Africa. They feel that mobile money will help them achieve this. They are committed to invest whatever is required to conquer the market and drive their banking activities using technology. Both banks have committed to work with them and commit the required resources to make the service a success. They have up to $10m to invest in the market to push the uptake service. SFC is pushing for a dual partnership between CBE and Awash and themselves Local firms left out Reports have already emerged how top Safaricom officials have been engaged in private meetings with top Ethiopian officials.

The Safaricom officials have reportedly already met the Ethiopian Finance Minister, Mr. Ahmed Shide, as well as the Minister for Innovations and Technology, Mr. Getahun Mekuria plus the Chief Executive of the Commercial Bank of Ethiopia, Mr. Bacha Gina. “The next thing we have gathered, is that they are destined to meet the Prime Minister to seal the deal, said a concerned local operator who preferred not to be named. The team that met Ethiopian officials included; Safaricom Head of strategy and planning, M/s Debora Mallowah, the Chief Business Development Officer, Mr. Ken Okwaro, while the local agent (Mr. Fixer) helping in the “lobbying” has been identified as a one Mr. Addis Alemayehu The local companies are saying they are being sidelined and left out of the merger, partnership with Safaricom. “We are already in business and providing a service, why not support us to grow, as a local Ethiopian company, or allow us partner with investors, instead

of granting them (foreign firm) majority monopoly,” said another concerned party. Already Safaricom is battling a trademark and branding case with Ethiopia’s based Amole Mobile Money Company in Kenya “KIPI”. Although Moneta Technologies has registered and been granted the Amole brand in Ethiopia and US, Safaricom wants to register the brand in Kenya for unknown reason. Amole was started by Dashen Bank, the leading private digital bank in Ethiopia, and its technology partner, Moneta Technologies. Amole, named after the ancient salt-bar currency used in ancient Ethiopia, offers subscribers digital payment capability and access to aggregated digital products and services from Retailers, the Entertainment Industry, Airtime Dealers, Bill Payment Points, Airlines, Social Media Players and third-party service providers.

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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 40years of experience in the business but wants to come in as a joint venture as it looks to manufacture for local consumption rather than export. Any interested investor can partner up with them by either putting up work space, money or both.

A real estate company that has 13 stories apartment built in a central part of the city and in the final stage of finishing is looking to sell the building. Interested buyers, who have the capacity to take it out of the sellers’ hands immediately, will get priority.

A coffee roasting and packaging company in Ethiopia is looking for an export opportunity in south east Asia and will be willing to sign an exclusive partnership agreement with interested parties who will be willing to take and distribute a constant amount of the product to the region per year.

A tomato paste manufacturing company in Amhara region wants to outsource it distribution to interested parties. The distributer should have the capacity to take all the manufactured good with its on transportation and should also be able to distribute the product to different part of the country.

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

REGULATION OF FOREIGN EXCHANGE IN ETHIOPIA By:Gebreala Abraham Given the country’s forex crunch, Ethiopia has stringent foreign exchange control rules. The National Bank of Ethiopia (“the NBE”) is the authority with the power to formulate and implement exchange rate policy, has issued a number of directives regulating foreign currency. Efficient use of hard currency is backed by the country’s policy of import substitution. As a result of this, export focused production and service provision is encouraged.

Repatriation of Foreign Currency The foremost concern for investors when it comes to foreign currency regulation is, compliance to the rules that govern the repatriation of profit, inflow of external loan and salary remittance. One of the guarantees provided under the Investment Proclamation 769/2012 is remittance of funds. Any foreign investor has the right to remit funds in convertible foreign currency at the prevailing rate at the time of remittance. Remittance right is guaranteed with respect to approved foreign investment.Domestic investors are not entitled to remit foreign currency outside of the country in respect of their investment. The list of causes mentioned by the investment proclamation as eligible for remittance of funds are:

Profits and dividends accrued from investments Principal and interest payments on external loans Payments in relation with registered technology transfer agreements Payments in relation to collaboration agreement with a domestic investor - Proceeds from transfer of shares or partial ownership - Proceeds from sales or liquidation of the company - Compensation paid to the company as a result of expropriation

importer shall be served on first come first served basis. There are also payments which are regarded as invisible payments for which commercial banks sell foreign currency on demand basis.

The other regulated area in terms of use of foreign currency is, repatriation of loan and suppliers’ credit. In principle, investors are expected to solicit finance from domestic sources and basically from financial institutions. In case when investors opt to get loan from external sources, such loan agreement shall be approved and registered before the NBE. In addition, suppliers credit agreement shall also be registered before the NBE.

Holding foreign currency while present in Ethiopia is not without restriction. The rules of NBE impose limitation on for how long an individual person can have a foreign currency under its possession. Every person entering to the territory of the country shall declare the foreign currency under its possession before customs authority, if the foreign currency amount is above the minimum threshold the law provides.

Foreign Currency for Import Transparency in allocation of foreign exchange directive provides rules on use of foreign currency for importation of goods, services and inputs. The directive provides priority lists in three different categories depending on the domestic need to import the goods. Among these priority areas

The NBE has issued a directive to regulate opening foreign currency accounts.In addition to foreign investors, Ethiopians who reside abroad, exporters and foreign nationals of Ethiopian origin are allowed to open foreign currency account provided that, they have fulfilled requirements under the law.

Failure to observe the rules provided under the directives issued by the NBE entails criminal responsibilities punishable with fine and/or imprisonment. Moreover, when it comes to investors who violate the laws, the commercial banks have the duty to submit their names to the NBE black list of delinquents.

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

Africa set to be the next big mobile market

Credit: Josephine Wawira Image by Andrey_Popov

Africa is judiciously positioned to be the next big mobile market, enviously eyed by global investors for her enormous growth opportunities. 2019 is undeniably the year to prioritize investments in Africa’s mobile market, to leverage this monetary opportunity. According to a Mobile Report for 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 USD 110 billion to Africa’s GDP (7% of the total GDP) in 2017 and is expected to generate more than $150 billion (approximately 7.9% of GDP) by 2022. The mobile technologies and services industry further supported 3 million jobs in 2017. 24

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

payments as well as searching for information.

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

Booming number of smartphones in Africa

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

Nevertheless, the growth of mobile will remain uneven, as the 54 African countries record varying performances, both in their respective mobile markets and the entire economies

In 2018, Africa had 255 million smartphone connections, which is equivalent to 36% of the total population. This is against a 444 million mobile subscriber base in

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

Online Marketplaces Could Create 3 Million Jobs in Africa by

2025 Credit: Josephine Wawira

Online marketplaces such as Jumia, Souq, Uber, and Travelstart could create around 3 million new jobs by 2025 across Africa. These digital platforms, which match buyers and providers of goods and services, could also raise incomes and boost inclusive economic growth with minimal disruption to existing businesses and workforce norms. These are among the findings of a new report, titled How Online Marketplaces Can Power Employment in Africa, released by Boston Consulting Group (BCG). Generating employment is an urgent priority across the continent. The African Development Bank estimates that onethird of the 420 million Africans age 15 through 35 were unemployed as of 2015. Around 58% of the new jobs—created directly, indirectly, and through the additional economic activity generated by online marketplaces—will be in the consumer goods sector, 18% will be in mobility services, and 9% in the travel and hospitality sector, according to the report. For online marketplaces to reach their full potential, however, the public and private sectors must work together to build the right digital environment from the outset, the report notes. Obstacles to industry expansion include underdeveloped infrastructure, 26

a lack of regulatory clarity, and limited market access. For their part, African policymakers are concerned about issues such as data security and potential disruption to traditional business sectors. The Economic and Social Benefits of Online Marketplaces “Online marketplaces are a good illustration of how the digital revolution can create economic opportunity and improve social welfare in Africa,” said Patrick Dupoux, a senior BCG partner who leads the firm’s Africa business. “Because Africa currently lacks an efficient distribution infrastructure, online marketplaces could create millions of jobs.” Concerns that growth in online marketplaces will merely cannibalize the sales of brick-andmortar 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

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

there’s minimal risk that e-commerce will displace existing retailers and that much of the population is underserved. Nor are online marketplaces likely to disrupt labor-market norms by blurring the lines between employees and freelances. Unlike in developed economies, the vast majority of African workers are in the largely undocumented and unregulated informal sector. In Nigeria, for example, 71% of workers are selfemployed and another 9% contribute labor as family members. The report also details the ways in which economic activity generated by online marketplaces boosts employment and incomes. These businesses create demand for personnel in new fields, such as platform development, as well as for merchants, marketers, craftspeople, drivers, logistics clerks, and hospitality staff. Some also offer skills-development programs and help small enterprises raise capital to expand their businesses. Online marketplaces also boost demand for goods and services in areas currently beyond the reach of conventional retail networks and bring new people

a BCG principal and co-author of the report. About Boston Consulting Group

such as women and youth who may be currently excluded from labor markets into the workforce. “While online marketplaces are often seen as disruptive forces in advanced economies, in Africa’s less-structured economics they can be tremendous catalysts of economic development,” said Lisa Livers a BCG partner and coauthor of the report. The report recommends that the online marketplace community and African governments collaborate to address the challenges that hinder the online marketplaces’ ability to grow. Both industry and government should take actions that foster a mutual understanding of both opportunities and concerns, strengthen trust through the sharing of resources, and build the right technological infrastructure and governance systems. “Fulfilling the tremendous promise of online marketplaces relies on the ability of the private and public sectors to come together to create the right digital environment that is designed from the outset to bring economic and social benefits for all,” said Amane Dannouni,

Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and notfor-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with offices in more than 90 cities in 50 countries. For more information, please visit bcg.com. About the Center for Customer Insight Boston Consulting Group’s Center for Customer Insight (CCI) applies a unique, integrated approach that combines quantitative and qualitative consumer research with a deep understanding of business strategy and competitive dynamics. The center works closely with BCG’s various practices to translate its insights into actionable strategies that lead to tangible economic impact for our clients. In the course of

its work, the center has amassed a rich set of proprietary data on consumers from around the world, in both emerging and developed markets. The CCI is sponsored by BCG’s Marketing, Sales & Pricing practice and Global Advantage practice. About BCG in Africa Our presence in Africa includes five permanent offices in Casablanca, Lagos, Luanda, Johannesburg and Nairobi and 7 research centres. BCG projects on the continent cover a large spectrum of industry sectors including Financial Institutions, Energy, Industrial Goods, Consumer Products, Healthcare, Technology, and the Public Sector. Our mission in is clear to create positive economic, social, and environmental impact on the continent About the AFRICA CEO FORUM For the past six years, the AFRICA CEO FORUM has been the largest international gathering of African private sector decision-makers and financiers. At its previous edition in Abidjan in March 2018, it brought together 1,500 business leaders, public decision-makers and investors from Africa and around the world for two days of discussions around the need to transform African champions in the face of international competition. The Forum is organized by Jeune Afrique Media Group,publisher of Jeune Afrique and The Africa Report, and by Rainbow Unlimited, a Swiss company specializing in the organization of economic promotion events.

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

Enchanting tourist attractions, unique 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.

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Abyssinia Business Nework ሚያዚያ 2011 / April 2019

Ethiopia’s capital Addis Ababa hosts African Union headquarters and the offices of UNECA 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 forwardlooking 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 Airlines, Ethiopia also enjoys convenient air connectivity 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 everexpanding 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 checkin and issue boarding pass as well as self-board. Passport and Ethiopian App suffice all the way to experience

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Invest, Harvest in

Amhara National Regional State “Amhara Regional State is not only endowed with favorable climate and good soils but also blessed with lots of facilities for investors like an international airstrip, a state-of-the-art cargo center and a fast developing infrastructure. Above all it has a beautiful environment with great potential. Come and convince yourself! ” noted Gedu Andargachew, former President of the Amhara Regional State. Amhara Regional State covers an area of 170,000 square kilometers with over 20.2 million people live in the state, of which 56% is between age of 15-60 years. The region receives mean annual rainfall which varies from 300 mm to 2,000 mm and annual mean temperatures mostly lies between 15-21°C. This is very favorable for the agricultural sector which is by far most dominant, accounting 90% of the region’s economy. Political and macroeconomic stability, competitive incentive package, market access, cozy operating environment, demographic advantage, huge untapped resources and infrastructure are the some driving forces why both local and foreign investors need to invest in the region. 30

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As far as agricultural potential of the region is concerned 1,190,076 hectares of land is favorable for crop production while 3,951,744 hectares of land is favorable for livestock development. Over 6.7 millionhectares of land is favorable for forestry products, land covered by forest products, favorable for eco-tourism, horticulture and floriculture products. In Livestock sector, Livestock farming which includes leather & hides, meat processing, dairy farming processing, poultry animal feed processing are yet another opportunities awaiting investors in the region. The region is well known for its immense potential in apiculture, so is its aquaculture.The annual honey yield of the region picks up to 7.9 million kilograms along with its noted high quality. The total fish catch potential from fresh waters is estimated at 255,000 quintals per year. Lake Tana alone has a capacity of producing 159,000 (62%) quintals of fish per year. There’s also opportunity for investment in the construction of aquaculture to produce fresh water fish for local and international markets.

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A total of 568,818.81 hectares of land cultivated with different types of forestsas the regional government provides land for free for 25 years. The potential in harvesting natural incense and wild gum is so high, for instance, 477,907.24 hectares of land covered with products of incense and wild gum, making the region contributes23% of the total products of the country. The region’s investment potentials in manufacturing, including textile and textile products, leather and leather products, food and beverage, wood products, paper and paper products, chemical products and pharmaceuticals, Information and communication Technology, mining and energy are worth mentioning. The region, in deed, is awe-inspiring tourist destination in Ethiopia as well as Africa, highly endowed with historical, natural and cultural heritages. Hence opportunities are in: star designated hotels, lodges, restaurants, and tour operation. The regional government supports priority areas through Customs duty exemption, Income tax holiday,

and loss carry forward, and remittance of profit, dividends, principals & interest payments on external loans and provision of land at competitive lease price. The Constitution and the investment law being implemented in the region protect private property. A foreign investor has the right to make following remittance out of Ethiopia in convertible foreign currency at prevailing exchange rate: Profit & dividends, principals & interest payments on external loans, Payments related to technology transfer agreements, Proceeds from the sale or liquidation of an enterprise, compensation paid to an investor, proceeds from the sale or transfer shares or partial ownership of an enterprise to a domestic investor. Fast and sustainable economic growth and development, stable economic and political environment, availability of abundant active and trained labor force, transparent investment policies and continuous government support, undoubtedly, call for the engagement of potential investors to invest and harvest in the region. Abyssinia Business Nework ሚያዚያ 2011 / April 2019

Siemens to Stretch Wings in Ethiopia By: MekonnenHailu (EIC Public Relations Director) Sub- Saharan Africa (SSA) has recently been experiencing high economic growth rates, significant government reforms and a rapidly expanding middle class. Of course, the development prospects for SSA remain promising, with real growth in SSA countries forecasted by the IMF to be above 4 percent in 2015, a faster pace that for all other developing regions. As far as Ethiopia is concerned, starting from dire poverty, as the second-poorest nation in the world in 2000, the nation has been the miracle economy in the past decade. World Bank data reveals that the country has averaged 10.8 percent real annual growth since 2004 and is expected to go up about 8 percent this year. Ethiopia is now working tirelessly to get policy and legislative conditions right to ease the business environment and attract more foreign direct investments. As a result, the business environment in Ethiopia had recently been improved. Furthermore, the foreign direct investment (FDI) flows to East African nation has been growing with a number 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

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multinationals as witnessed by increased investment in manufacturing, infrastructure, agriculture, mining and tourism, to mention but a few. Still the country’s market and resource potential remain untapped. European Industrial Giant, Siemens has agreed a framework for future energy and transport projects with the government of Ethiopia. Siemens is a global powerhouse in electronics and electrical engineering providing products, systems and solutions across the electrification, automation and digitalization value chain. In Africa for over 157 years, Siemens has a rich history of innovation and social development. As an integrated technology company, Siemens has been playing a constructive role in Africa’s success story. The company has rich experience in

power- efficient, resourcesaving technology that helps to empower African economies. The company is now one of the leaders in the digital revolution and develops smart mobility solutions to make transport system more efficient and digitalize production, increase output and produce quality products that give the company a competitive edge. As Siemens expands its investments in Africa, a Memorandum of Understanding (MoU) has recently signed between the Government of Ethiopia and the company to establish a platform for collaboration and long-term cooperation to address the current energy and infrastructure challenges in Ethiopia - and thereby accelerate sustainable socioeconomic development. The MoU was signed by Abebe

applying vast experience and proven technologies as well as training and education capabilities to help shape the future for Ethiopia and its people. One of the starting projects affirming our strong commitment in the region is the East Africa interconnector,” said Joe Kaeser, CEO for Siemens AG. Abebayehu, Commissioner of the Ethiopian Investment Commission, and Mrs. Sabine Dall’Omo, in her capacity as Chief Executive Officer - Siemens Southern and East Africa in the presence of higher officials and dignitaries. It is believed that the MOU addresses the country’s energy and infrastructure sectors. Other key aspects of the agreement include financing concepts that will ensure the long-term sustainability of these infrastructure initiatives; and creating opportunities for local upskilling and job creation during construction and operation. Ethiopia’s Growth and Transformation Plan serves as a catalyst towards realizing its national vision of accelerated and sustained economic growth in order to eradicate poverty and increase prosperity. “Siemens can make a significant contribution to Ethiopia’s development by

Siemens, indeed, is currently helping to increase the reliability of energy supply through an interconnector being built between Kenya and Ethiopia. The roughly 1,000 kilometerslong transmission line will transmit environmentally friendly hydroelectricity from Ethiopia to Kenya. The project currently supports 200 direct jobs in Ethiopia alone and is one of the largest infrastructure projects in Africa. The primary goal of this agreement is to commit to longterm partnership between the European industrial giant and the Government of Ethiopia to develop, fast track solutions that will enable government to stabilize and expand existing grid infrastructure, explore solutions for industrial parks and co-develop microgrid solutions for remote villages.

Sabine Dell’Omo, Siemens CEO for Southern and Eastern Africa stated that this milestone agreement is another step in demonstrating the company’s strong commitment to the people and government of Ethiopia. She says, “We are here today as we have been since 1927, to help achieve affordable and reliable power supply, create jobs, increase access to training and develop local skills alongside local partners.” As a giant company in Europe, in fiscal 2018, Siemens generated revenue of €83.0 billion and net income of €6.1 billion. At the end of September 2018, the company had around 379,000 employees worldwide. World Investment Report launched by UNCTAD indicated that East Africa, the fastest-growing region in Africa, received a total of more than 7.5 billion USD in FDI in 2017, a 3 percent decline from 2016. Ethiopia absorbed nearly half of this amount, with 3.7 billion USD. The East African nation which is the 8th largest economy in Africa and the second largest recipient of FDI after Egypt has continued to attract investments especially in manufacturing industries. This clearly indicates that Ethiopia has been on the investment radar of many multinational companies around the world.

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

ማን ልበል አላወኩህም? በዳንኤል እሙን በጣም ነው የምወዳት ፡ ሙሉ ህይወቴ ለሷ የተመሰረተ እስኪመስለኝ ። የዕሙም መውደድ ግን ከናፍሯ ላይ ከኔ በተሻለ ነው ። ሆዴ ……… ዛሬ ሙሉ ቀን የት ነው ጠፍተህ የዋልከው ? እንዴት እንደናፈከኝ ፡ ስትጠፋ እኮ ይጨንቀኛል ። ያነጋገር ለዛዋ ከዜማ ጋር የታጀበ ስለሆነ እንዴት ደስ እንደሚል ።

ብዙም ባይባልም እኔ ስለወደድኩት ለኔ ተውልኝ ። ብቻ የውስጤን ምን እንደነካችው ባላቅም ነገረ ስራዬ ሁሉ የሚያስበው እሙን ነው ። የኔ እንደዛ መሆን ለእሙ. . . ። ሌላው ቢቀር ስለመፈጠሬም የምታቀው ቦታው ላይ ስገኝ ብቻ ነው ።የትኛው ዘመን ነው እንደዚህ ነገሩ ሁሉ የህሊና ቀርቶ የዳቦ የሆነበት ? ።

ከእሙ ጋር የተገናኘነው ተቀጥራ በምተሰራበት ሆቴል ውስጥ ለመዝናናት በሔድኩበት ሰዓት ነው ። የመጀመሪያ ቀን ያየኋት በዩኒፎርም ሲሆን ሆኖም ግን የለበሰችው አጭር ቀሚስ ልዩ ውበት ሰጥቷታል በደንብ እንዲታይ የሰውነት ቅርጿ እድሉን አመቻችቷል ። እሙ ብዙም ቆንጆ ባትባልም ሆኖም ያላት የሰውነት ቅርፅ አቤት ፡ ወዴት ? እንድትል በሩን ክፍት ነው የሚያደርግው ። ዓይኖችህ ማረፍ እስኪያቅታቸው ድረስ ነው ሰላማቸውን የምትነሳቸው ። የአፍንጫዋ አቀማመጥ

ከየትም አቅጣጫ ይምጣ በየትኛውም የድምጽ ቃና ብቻ የሷ ስም ይሁን እንጂ ሁሌም መልሷ ወዬ ነው ። ታድያ ወዬ ያመጣብኝ ጣጣ ። የካሮት እድገት ሁኖብኝ ይሄው ዓመት አስቆጥሬያለሁ ከወዬ ጋር ።

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

በመሃከል በተዋወኳት ሶስተኛ ወሬ ይመስለኛል በሳምንቱ የመጨረሻ አንዱ ቀን ልጋብዛት ፈለኩና ምን ማድረግ እንዳለብኝ ከራሴ ጋር ማውራት ጀመርኩ ። እንዴት ግን ትወደኛለች ስለ የመጀመርያ ጥያቄ ለራሴ

ጠየኩ ። ለምን አልጋብዛትም ብዬ እራሴን ደፋር አደርኩት ። አድሬስዋን አንድትሰጠኝ ጠይኳት ከቢል ጋር አብሮ መጣልኝ ።እስከምደውል እንዴት ሰዓቱ ይሂድልኝ የአመት ያክል ነው የራቀብኝ። መድረሱ አይቀርም ረፋዱ ላይ ደውልኩላት ። ከእንቅልፏ እየተንሳች ነበረና ድምጿ ትንሽ ወፈር አለ ቢሆንም ግን ለኔ የትኛውም ይሁን ማናገሬን ብቻ ነው ያሰብኩት ሆኖም ግን ስወጣ ልደውልልክ ብላ ብዙ ሳታዋራኝ ስልኩን ዘጋችው። ስልኬ በጮኽ ቁጥር የሷ እየመሰለኝ እደንግጣለሁ ። የሷ ስልክ ግን የውሃ ሽታ ሆነ ። አላስችል አለኝና ደውልኩ እዛ እንገናኝ አለችኝ የስራ ቦታዋ መሆኑ ነው። ሰዓቴን ጠብቄ ሄድኩ ። ሰላም ነው ኣባት ብላ ሞቅ ባለ ሰላምታ ከሰጠችኝ በኋላ ምን ላምጣልክ ስትል ጠየቀችኝ ቡና አልኩ ካፌ የመጣው እሱ ስለነበር ።የፈለኩት ግን ቡና አልነበረም ። እሙን ነበር ውስጤ የፈልገው ። እሙ ፈጥና ቡናውን ይዛልኝ ስትመጣ ያለኝን አቅም አስባስቤ ውጭ ምሳ ልጋብዝሽ ፈልጌ ነበር ስል በፍርሃት ጠየኳት የእሙም መልስ ፈጣን ነበር ። ምንም ችግር የለውም የት ስትል ቶሎ ለመመልስ ጠየቀችኝ ፡ አንቺን የተመቸሽ ቦታ ……………..ሳሮን 7ሰዓት እንገናኝ ብላኝ ወደ ስራዋ

ተመለሰች ። ደስታዬ ወደር አልነብረውም ። ወደ ቤት ለመሄድ በጣም ነው የቸኮልኩት ። እሙ ሂሳብ መጣ እስክትወስድ አላስቻለኝም አቁነጠነጠኝ ። እሙ ሳትመጣ መሄድ ስለሌለብኝ በተቻለኝ አቅም ጠበኳት እሙ ግን ልትመጣ አልቻለችም በአይን ምልክት ሰጥቻት ወጣሁ። የሌሊቱ ርዝመት ለኔ ለመጀመሪያ ግዜ ነው። እሙን ላገኛት ስለሆነ ብዬ ግን በትግስት አሳለፍኩት የማይደርስ የለም ሰዓቱ ደረሰ ደስ አለንኝ ። እሙ አልመጣችም ፡ የሴት ነገር ስትቀባባ ይሆናል ብዬ 30 ደቂቃ ጠበኳት አልመጣችም ሰዓቱ መቁጠሩን ተያይዞታል 45 ደቂቃ አለፈ እሙ አሁንም አልመጣችም ። ስልኳላይ ልሞክር ብዬ ስሞክር ስልኳ አይሰራም ምን ሁና ይሆን ብዬ ተጨነኩ ። ደጋግሜ ስልኳ ላይ ደውልኩ ዝግ ነው። 1፡20ደቂቃ ያክል ከጠበኳት በኋላ ወደመጣሁበት በመጣሁበት እግሬ ተመለስኩ ። አላስችል ስላለኝ የመጨረሻ ብዬ ስሞክር ስልክዋ ሰራ ደስ አለኝ ። እየተነባተብኩ እሙ በሰላም ነው ብዬ ጠየክዋት …………. የእሙ መልስ ግን ተመሳሳይ ነበር ይቅርታ ማን ልበል አላወኩህም ? ።

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

Easter and Holiday Blues?

By: George Yehish Accompanied with longer abstinence from proteins and animal products to fasting Easter in Ethiopia is celebrated with big feast and lots of cultural and religious activities that will enlighten visitors. Tradition holds that people in Ethiopia invite friends and family over and eat together. The celebration involves celebrating in gathering to commemorate Jesus’ resurrection where the public show love to one another. Regardless of one’s religious affiliation, the holiday season often inspires feelings of warmth, joy, and belonging. But for some people, this time of can evoke some significant Psychological feelings of loneliness, stress and anxiety. The holiday blues are a real phenomenon, but they are likely to have different effects than you might think. Many of us tend to attach meaning to the holidays that adds extra pressure to our experiences and can set us up to feel disappointment, anxiety, or sadness. So what are some of the reasons we get down at the close of the holiday such as Ethiopian Easter and how can we take a proactive approach to staying positive? 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

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• The holiday season brings with it high expectations for happiness and merriment. People who don’t get quite as excited about decorations, holiday music and gift-giving might experience confusion or guilt about the disparity between their true feelings and how they believe they are supposed to feel. This phenomenon, though common, can cause individuals to dread the holidays before the season even officially starts. • The other reason to be believed is, everyday feelings of loneliness are magnified during a time commonly associated with family, love and togetherness especially in a collective society like Ethiopia. The holidays can be especially hard on those who lack a significant other, or experience geographical or emotional separation from family, friends and loved ones.

Any remedy Blues?

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Holiday

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

“ Wish you to have a marvellous Easter! ” George Yehish (Clinical Psychologist, MA) georgeyehish@yahoo.com Abyssinia Business Nework ሚያዚያ 2011 / April 2019

Celebrating

The Untapped Po A mega event dubbed as Champion of Tourism Olympiad - African Tourism Week Celebration is to be held on 1-3 June 2019 in Addis Ababa. Africa is a continent owning many natural and social resources which has to be promoted and commercialized for the rest of the whole World. NEPAD (New Partnership for African Development) is working to enhance the capacity of African Tourism and has launched its Tourism action plan back in 2004 with a view developing sustainable tourism throughoutthe Continent. 38

Abyssinia Business Nework ሚያዚያ 2011 / April 2019

Even though African is a very lucky continent having attractive and amazing natural and social heritages, the expected general Tourism activity is not satisfactorily conducted focusing on exploiting every potential and capacity from the sector addressing all African Countries. But it is clear that the level of tourism sector is gradually increasingat a continent level.

Tourism is recognized as one of the basic sectors with the greatest potential to contribute to the economic generation of the continent particularly through the creation of jobs and foreign currency earnings. Such carefully prepared tourism promotion plan, strategy and application play a great role in the general activity of Tourism Industry and its progressive benefit throughout the continent level.

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.

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otential This event mainly aims at promoting and marketing the African Tourism and creating a reliable and confidential relationship between African Countries in Social, cultural and 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.

Event organizers can be contacted via E-mail……africatourismweek2019@gmail.com Website … w.w.w.africantourismweek.com] Abyssinia Business Nework ሚያዚያ 2011 / April 2019

Abyssinia Business Nework ሚያዚያ 2011 / April 2019