Ethiopia: Economists diagnose business


  1. Andualem Sisay, AfricaNews reporter in Addis Ababa, Ethiopia
    A study by the Ethiopian Economists Association conducted in sixteen major cities revealed seven obstacles that are harming business and investment across the country. This was indicated on a 'National Business Agenda' and plans presented for discussion.
    Addis Ababa
    The discussion is taking place on a public-private forum of the Ethiopian Chamber of Commerce and Sectoral Association (ECCSA).

    Ever since the introduction of Value Added Tax (VAT), its irregular  implementation has been a major problem, states the study.

    The lack of infrastructures and good governance, seen especially in the regions, harmed most businesses and now its fair and regular implementation is a demand of most business people, says the study.

    Despite encouraging steps by the government, corruption is still pulling back business by creating unfair competition and inefficient services from governmental institutions.

    According to the study, education related business owners demand equal job opportunity for their graduates. The national business agenda explained that most private college graduates are excluded or discouraged from claiming positions in governmental institutions.

    The decision of the Ministry of Education not to entertain teachers from non-governmental colleges in governmental education institutions is one of  the examples mentioned in the study that are harming the investments and business of the private education sector.

    In addition, alleged ban of private medical field graduates from working in governmental health institutions and other related polices are also disrupting the investments and business of the private education sector, which is expected to entertain thousands who do not get the opportunity to join government universities, according to the study.

    According to ECCSA public relations office, seventy per cent of the study's expense was covered by the Center for International Private Enterprise, based in the USA and the remaining by ECCSA.

    The National Business Agenda which ECCSA says is a vital tool for the business community to encourage investment and stimulate economic growth is added to the last six months performance of the new management which was  reestablished and has elected eleven board members.

    On a press conference Getachew Ayenew, president of ECCSA, gave on Saturday November 9, 2007 at the association hall, he announced that a five year strategic plan has been prepared and approved by the board.

    He explained that out of the five year strategic plan, this year's part aims to facilitate dialogue and means for the business community to hold talks with government, add and maintain members of the association.

    Getachew said ECCSA welcomes and appreciates government's decision to mark export day annually and award forty three exporters. He called on the business community to engage in fair business competition, and to give sincere and efficient service to the society so that the efforts to put  Ethiopia among middle income countries can be realized.


    Keywords:  ethiopia business investment




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