Content: Commentary

  • Rethinking Profit Sharing During Expropriation

    The way land expropriation is handled might not be ideal for all parties involved. When taking land or property away from land owners for development, the market value of the asset needs to be shared fairly between the government and owner writes Daniel W. Ambaye (PhD), a researcher and consultant in land and property. He can be reached at danambaye@yahoo.com

  • Time to Revisit and Revitalize Banks’ Crisis Preparedness

    With recent events in the country such as mild earthquakes, the need to be prepared for disaster has to given attention. But the preparedness of institutions like banks and there ability to respond to a disruptive event has not been well thought out. As Gorfu Assefa, banking expert, writes. He can be reached at gasefa9@gmail.com.

  • The Mispriced Risk of Infectious Diseases

    The fight against infectious diseases closely resembles the fight against climate change, writes Dambisa Moyo, an economist and author, who sits on the board of directors of a number of global corporations. She argues though the threat is substantial, it is not immediate, so governments continue to pursue other priorities, allowing the threat to grow, largely out of sight.

  • Rewriting the Monetary-Policy Script

    There is a major reliance by central banks on old ways of doing things, they depend on rigid rules to control inflation and stimulate growth. There are better benefits in being flexible with monetary policies and central banks need to be open to different ideas writes, Michael Heise

  • Bids for Bank Shares too Wild to Make Sense

    The recent offers by prospective buyers for shares floated by private commercial banks have caused eyebrows to raise, as some of the offers are unprecedentedly generous. Bidders to look into the history of dividend-payout ratio of a particular bank before they place their offers, argues this writer with solid background in finance and whose identity Fortune withheld upon request.

  • Zero Innovation for the 10b Br Youth Fund

    The announcement of a revolving youth fund has been music to the ears of the youth. However, the new strategy of the fund does not outline the need to be innovative to succeed in the business environment or equipt the youth with the necessary technology as Hailemelekot T. Berhan writes

  • Refugees as Weapons of Mass Destruction

    Ricardo Hausmann, a former minister of planning of Venezuela and former Chief Economist of the Inter-American Development Bank, is Director of the Center for International Development at Harvard University and a professor of economics at the Harvard Kennedy School.

  • Climate Insurance Hot Prospect for Ethiopia

    The concept of climate insurance is not new in developed countries, but in Ethiopia it is a new idea that is trying to be implemented. With the recent climate changes that are being seen, insurance companies are introducing the concept to the public. But it comes with challenges, as Yohannes Eneyew writes.

  • A Case for Launching Securities Exchange Market

    The recent episode where a prospective investor offered 14,000 Br for a share of 1,000 Br at Awash International Bank (AIB) reveals the reality on the ground moving faster than regulators ability to manager a growing share market. While it is appropriate to protect prospective buyers from the consequences of their misinformed and misguided decisions, establishing securities exchange is about time with all its benefits to the economy, argues Abdulmennan Mohammed Hamza, a financial analyst based in London.

  • Principled Civil Servants Key to Building Developmental State

    With the rush to develop Ethiopia and make the country one among middle-income countries of the world, there is a need to focus on the civil service, Yohannes Gebeyehu writes. Without improving the bureaucracy system and having reliable service, he argues, it will be very difficult for the country to achieve the goal.

  • How to Do Industrial Parks Right

    The development of industrial parks in Ethiopia has become a talking point amongst the public. Last week a commentary was written about the topic and the possible challenges the industry can face, this week another side of the argument is presented by Brook Abdu.

  • Sow knowledge, Reap Cash

    Although the number of banks is on the rise in Ethiopia and the banking industry is expanding, there is limited knowledge among the public about the financial and banking systems. A huge gap and potential remains in the populous country that can only be attained by acquired knowledge writes Ben Girma an independent consultant, he can be reached at benselective@gmail.com

  • Crucial Leather Sector Needs Rescuing

    One of Ethiopia’s main exports is leather. For many years, the country has been exporting it, and there are plans by the government to expand its capacity. However, the local tanneries and the process involved before exportation is a long road writes Wengel Tessema an Intervention Manager at Enterprise Partners, Ethiopia. Wengel can be reached at wengelawit.k@gmail.com

  • Diffusing the Ticking Time Bomb of African Youth

      Young people in Africa are not involved in policy making and rarely consulted in decision making. Many are jobless, angry and vulnerable to agitators who want to set fires that would send the youth in a paroxysm of violence. Proper engagement of youth at all levels of development is of paramount importance. Governments need […]

  • Growth Strategy, Way To the Top for Africa

    The most promising concept in the profession of accounting is the ‘Going Concern’ concept, explained in terms of time. There is no company for a day or a month; companies are formed for an indefinite period of time in the future. This concept works when firms are incorporated in a form of sole proprietorship, or […]

  • Banks’ Era of Diminishing Returns

    The returns from the financial sector in Ethiopia are amongst the highest in the world, according to the National Bank of Ethiopia. However, the actual money that shareholders take home at the end of the fiscal year aren’t showing the same kinds of trends as people are speaking about. While some banks so give their shareholders exceptionally high, they are just that: an exception. The influence that these cases should have on national financial legislation should be minimal, without ignoring the more typical cases, argues financial analyst Abdulmenan Mohammed Hamza.

  • Accountancy and Climate Change

    Environmental accounting requires additional disclosure to cover environmental incidents. It creates better awareness of a firm’s overall financial position and performance and also informs stakeholders about the potential consequences associated with an environmental devastation Getaneh Shambel Certified Accountant.

  • In Defense of Globalization

    Economic inequality among countries has declined sharply in the past 20 years, owing partly to China’s rise, as well as to economic development across Asia, Latin America, and elsewhere. In fact, by 2010, the United Nations had already achieved its Millennium Development Goal of halving poverty by 2015, and recent projections suggest that, by 2050, poverty will be eradicated everywhere except Africa.

  • EU Should Act on Immigration, Not Preach

    The issue of migration is an important world affair that deserves needed attention. There are still questions to what extent such a more ‘coercive’ attitude complies with the notion of a ‘true partnership’ with Africa, which seemed the basis for the agreement in Valletta, writes Annabelle Laferrère and Anna Knoll, European Centre for Development Policy Management (ECDPM).

  • Building On Ethiopia’s Health Care Success

    Over the past decade or so, Ethiopia has been in the limelight of global health for its impressive achievement in the health sector. The country’s flagship health extension program has received numerous accolades as innovative, pragmatic, and comprehensive service delivery platform. Ethiopia has also expanded its network of primary health centers at an unprecedented pace. […]

  • Devaluation Not Silver Bullet Solution

    For many economies around the world, the year 2016 was a year of disappointment and melancholy. Once used to be a symbol of buoyancy and dynamism, many economies had spent the year grappling with sluggish economic performance and struggling to revive their depressed financial markets. Low productivity, rising debts, decline in capital investment, and lackluster […]

  • Bank’s Unfair Deal to Diaspora

    Given such legal provisions, which are the only ones of their kind, and given that there are no laws that authorize NBE to order banks to purchase legally-acquired shares and allocate shareholders’ earnings to NBE’s treasury, and given that it has only Article 58, sub-article 7, to seek legal action, NBE has opted to break the law under the pretext of defending the law, Andinet Semere writes.

  • Globalism Under Siege

    The emergence of nationalists could be one of the major threats, may be the final bullet against globalisation. As a result, national rules, regulations and standards will again be important and the reliance on international standards will be questioned, writes Getaneh Shambel.

  • Understanding the Future Market

    We need to shift the focus swiftly and vigilantly debate the future market. It is an inevitable one. That is the avenue of being a transnational company though which we ride to the world market, writes Asseged G/medhin G/Mariam.

  • Is Disruptive Good or Bad?

    Do we need more disruptive innovation in Ethiopia? Absolutely. Disruptive innovation is a tremendous force for transforming millions of lives and vital for achieving broad-based development, the kind of development we seek in Ethiopia writes Eleni Gabre-Madhin (PhD).