Ethiopian Business Review

Abenomics is a recently coined word to re- fer to the massive planned spending by the new Japanese Prime Minister Shinzo Abe to relieve the country’s economy from more than two decades of stagnation. To start the economy going and achieve some level of growth, the plan envisages investing tens of billions of dollars on infrastructures, among other things. Even though it is still a challenge to do this in an era of austerity, the Japanese government can go with its plan, thanks to a variety of deficit financing mechanism and its sophisticated financial market.

According to the 10 indicators that constitute the overall ranking, Ethiopia has shown mixed results with huge differences among the indicators. The country relatively performs better when it comes to indicators like construction permits, access to electricity and legal issues. It has also shown better performance in availing finance for businesses in the last year. But the nation continues to be a hard place to get business license and establish a company, and trade across borders. This difficulty of conducting international trade can be explained by the dismal logistical facility in the country in addition to its lack of its own port.

Even though Ethiopia is among the top fast growing economies in the world, according to the World Bank, its position in its ease of business doing reports has been eroding in the last two years. From the high point of 104th position in 2011 its ranking has slipped back to 127th in the current ranking. Singapore is able to maintain its position of being the easiest place to do business in for the last five years, while two of the BRICKS countries: India and Brazil are placed below Ethiopia in the ranking. Central African Republic is the last country in the ranking, holding 185th place, preceded by Chad, Congo and Eritrea consequently.

Bringing together garnered knowledge of three decades of agrarian research on Ethiopia, which stretches across three regimes (the imperial regime (the emperor Haile Selaseie regime that ended in 1974) the Derge regime (1974-1991) and the EPRDF regime (1992-to date), Desalegn Rahmato present a lucid and comprehensive argument in his book entitled The Peasant and the State. Coming to the conclusion that despite three regime shifts and various policies, the Ethiopian agriculture has fundamentally remained unchanged. This has left the Ethiopian peasants to remain in abject poverty at which the author is personally outraged. The main message that Desalegn finally wanted to convey is that this is because all regimes and their policy did not take the peasant as ‘an agency’ of change. The peasant is not free to do at will what he/she wants to do. The peasant doesn't even have the limited freedom needed for his/her development. This consists of the right to the land without any outside imposition, the right to work freely and for oneself, the adequacy of product from the land, and the right to dispose of the product form the land to benefit the producer themselves.

As we have discussed in the last issue netiquette-network etiquette, is es- sential for business doing. And here we will discuss the different rules that one must consider in Email correspondence, as out lined by experts in the area.

The main mission of Universities is creation and dissemination of knowledge for the betterment of mankind. Universities acquire knowledge through research and other means, to disseminate it through teaching, publications and professional forums. University-Industry linkage refers to the channels through which knowledge and technology in universities are transferred to the industry to be integrated into products and services.

Executive Super Power: a Challenge for Rule of Law

Tuesday, 30 April 2013 06:31 Published in Commentary

This Year started with the Ethiopian Revenue and Customs Authority (ERCA) sending "dividend tax assessment notice" to several private limited companies and share companies. This notice was issued on the basis of its own controversial circular that purported to give "legal interpretation" of existing dividend tax by lawyers of ERCA and Ministry of Finance and Economic Planning (MOFED) on the scope of application of dividend tax on undistributed net profits registered under the heading of retained earnings on each company’s account.

Gazing into a Bright Future

Monday, 29 April 2013 11:02 Published in Focus

Having excelled to prominence with her entrepreneurial drive in less than a decade, Bethlehem Tilahun Alemu, 33, has proven her business acumen to the world. From being featured on Forbes’s ‘Top Lists’ repeatedly, to receiving global repute for her innovative enterprise, she has garnered enormous recognition She has also been featured in several international Media including the BBC, CNN, Le monde, and various others. The emerging business leader has much more prospect than what she has proved so far. In her own terms, her success is yet to be proved if she manages to open 100 stores worldwide by 2020.

Bostex PLC, the company she founded in 2004 with her husband and serves as its managing director, produces soleRebels, which is a brand of the eco-sensitive shoe produced from organic Ethiopian materials. The brand has now become trendy and is available through high streets and online retail stores in more than 60 countries. soleRebels has truly become successful, sustainable, and unquestionably world- class for its authenticity, style and value. Amanyehun R. Sisay, Executive Editor of Ethiopian Business Review sat down with Bethelhem to discuss where the company heads, among others: Excerpt:

The BRICS - Brazil, Russia, India, China and South Africa- have agreed to establish a new development bank on their 6th summit staged in Durban, South Africa, on March 27, 2013. There are speculations that 50 billion dollar will be injected in to the new bank as an initial capital. The five countries will contribute equal amount.   Following this announcement economists around the world have been contemplating what it will mean to the global order.

Traditional Weaving, Contemporary Market

Monday, 01 April 2013 13:14 Published in Art & Life

Biru Hudde, 43, is a traditional weaver from Southern Ethiopia. He toil all day in the com- pound in which he also lives in a rental house around Piassa, on the road from Ras Mekonnen terrace to Afincho Ber roundabout. He has been in the profession for the last 30 years.

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