...Contents 1. Introduction to Ethiopia’s Economy 3 Agriculture effect on economy 4 2. Ethiopian Economy Facts 9 3. GDP Projection 14 Analysis of various factors 17 Inflation 17 Interest Rates 17 Exports and Imports 18 Trend Analysis 18 4. Conclusion 19 5. References 20 1. Introduction to Ethiopia’s Economy Ethiopian economy is mainly based on agriculture sector, which accounts for 46% of the GDP and 85% of the total employment. Coffee has been a major crop which also mainly contributes to Ethiopia’s exports to the other countries. Ineffective cultivation practices and inadequate rainfall are the major deterrents to the agricultural sector. But recent joint efforts by the Ethiopia Government and aid agencies are helping to upgrade the traditional agricultural practices. This has significantly contribution to the reduction in number of Ethiopians suffering from starvation. The sectors of banking which comprises Insurance and Micro-credit industries are not open to foreign investors, though Ethiopia had huge inflows of investment in other commercial agricultural sectors like leather and textile. The graph shows Ethiopian economy’s sector-wise performance from the year 2004 to 2010. The agricultural sector has seen constant decline from 65% to 30% chiefly due to minimal rainfall. Soil is not fertile for the harvesting, so the crops were not growing properly. In industry sector emerging as it can be seen from growth up to 60% in 2010 as compare to...
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...1.8 Operational Definitions 9 1.9 Organization of the paper 9 Chapter Two ……………………………………………………………………………………...10 2 Literature Review 10 2.1 Measures of Bank Performance/Profitability 10 2.2 Factors Influencing Bank Performance/Profitability 10 2.3 The influence of Bank-specific factors on Bank Profitability 11 2.3.1 Capital Adequacy 11 2.3.2 Assets Quality 12 2.3.3 Management Efficiency: Operational Costs Efficiency 12 2.3.4 Earning ability: Diversification of Income 13 2.3.5 Liquidity 14 2.4 The Influence of Industry-specific Factors on bank profitability 14 2.4.1 Bank Size: 14 2.4.2 Market Concentration 14 2.5 The Influence of Macro-economic Factors on Profitability 15 2.5.1 Economic Growth 15 2.5.2 Inflation 15 2.6 Earlier Studies on Ethiopian Banking Industry 16 2.7 Conceptual Framework 19 Chapter Three …………………………………………………………………………………….20 3 Research Methodology 20 3.1 Research Design 20 3.2 Methods of Data Collection...
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...Country Analysis - Greece Bordering the Aegean Sea, Ionian Sea and the Mediterranean Sea in southern Europe,Greece is a country of mostly mountains with ranges extending into the sea as peninsulas or chains of islands. From wet winters, to hot and dry summers, greece is a popular tourist destination. With nearly 4.5 million people in the Athens area, Greece is populated with nearly 10 million people in which a parliamentary democracy exists. 300 people are elected whom form the parliament which conducts the legislative duties of the government.The political party collects approximately 151 seats in the parliamental duties of the administration. The president automatically becomes prime minster and then gets appointed to become cabinet ministers. The actual ‘president’ is elected by the parliament for a five year term. The current ‘chief of state’ is President Karolos Papoulias and the head of government is Prime Minister Antonis Samaras. As you are aware, Greece’s economy isn’t doing too well lately. Greece has a capitalist economy which means it has an economic system based on private ownership of capital. 40 percent of the countries GDP is accounted from a public sector. Tourism provides fifteen percent, in which we will discuss later. Between 2003 and 2007 the economy grew nearly four percent per year. This is partially due to the 2004 Olympic games which also resulted in an increased availability of...
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...Graduate School of Development Studies A Research Paper presented by: Celeste Aida Molina Fernández (Guatemala) in partial fulfilment of the requirements for obtaining the degree of MASTERS OF ARTS IN DEVELOPMENT STUDIES Specialisation: Rural Livelihoods and Global Change (RLGC) Members of the examining committee: Prof. Dr Max Spoor Prof. Dr Peter Knorringa The Hague, The Netherlands November, 2010 Disclaimer: This document represents part of the author’s study programme while at the Institute of Social Studies. The views stated therein are those of the author and not necessarily those of the Institute. Research papers are not made available for circulation outside of the Institute. Inquiries: Postal address: Institute of Social Studies P.O. Box 29776 2502 LT The Hague The Netherlands Location: Kortenaerkade 12 2518 AX The Hague The Netherlands Telephone: +31 70 426 0460 Fax: +31 70 426 0799 Acknowledgments I would like to express my deepest appreciation to all the people who in one way or another contributed to the completion of this study, especially the interviewees, who generously shared their time and knowledge about the coffee sector in Ethiopia. My sincerest appreciation goes to Bilisuma Dito, who first introduced me to the ECX and provided me with key contacts for the fieldwork. Many thanks to Martha Kibru, Saba Yifredew...
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...A GLOBAL / COUNTRY STUDY AND REPORT ON ETHIOPIA MBA SEMESTER-IV [Batch: 2011-13] SABAR INSTITUTE OF MANAGEMENT (751) Affiliated to Gujarat Technological University Ahmedabad 1 Index Topic Page No. Part-1: Macro Analysis of Germany (Sem-III) Country Profile 3 Industries 6 PESTEL Analysis 7 Part-2 Industry Study(Sem-IV) Pharmaceutical Industry 39 Shipping Industry 46 Agriculture Industry 52 Insurance Industry 60 Leather Industry 64 Telecommunication Industry 68 Ceramic Industry 75 2 Part-1: Overview of Ethiopia Ethiopia is located in the Horn of Africa. It‘s proximity to the Middle East and Europe, together with its easy access to the major ports of the region, enhances its international trade. Ethiopia is boarded by the Sudan on the west, Somalia and Djibouti on the east, Eritrea on the north and Kenya on the South. The diverse topography of the country generally features rugged mountains, flat-topped plateaus, deep river canyons, rolling plains and lowlands. Ethiopia adopted a new constitution that established the Federal Democratic Republic of Ethiopia (FDRE) in 1995. The federal government is responsible for national defense, foreign relations and general policy of common interest and benefits. The federal state comprises nine autonomous states vested with power for self-determination. The federal state is headed by a constitution president and the federal government by an...
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...through the same Way by entering contractual agreements with various service providers such as hoteliers or tour companies .As a result most carriers such as Emirates, South African Air ways, Kenyan Airways etc are the beneficiary of this strategy mainly due to their own home base are tourist destinations .When it comes to Ethiopian airlines the actual fact is contradictory in that it has not been a beneficiary of its own country tourism attractions through product bundling .And the holiday package development is at its infantile stage. As a result the national carrier became highly dependent on the 6th freedom traffic right. That is 65 % of the total traffic are transiting Addis Ababa as stated on Ehiopian Airlines Annual commercial report (2010). As such no attention was given until recently to develop in-house package. In fact there are several reasons for this .The major being the political and economic policy of the ruling bodies especially after the fall of Imperial Hailessie administration could be cited as a setback for tourism sector development. That is the coming of a military junta to power PMAC in 1974 introduced the socialist philosophy and command economy (Thomas and Berry, 2002) .This had a bad impact with...
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...investigate the problems faced by the underdeveloped countries, in their attempt to provide aid programs and technological assistance and promote long-term economic growth and political stability. Typical traditional societies were analyzed in the processes through which they should develop into modern social structures by following an unidirectional path similar to the ones already tested by the Western societies. Several factors that contribute to the development of a modern society (including technological, economic, social, political, military and cultural innovations) were illustrated in many studies of this theory. The complexity of outcomes was generally overlooked, making necessary more than just the classic theory for a proper analysis of a country`s modernization. Thus, the Harvard Project, the most relevant study on the social and cultural aspects of development, emphasized that an ideal model can`t be defined, as the modern personality corresponds more to a desirable plan of modern society than to the contradictory nature of modern reality. Therefore, I will further seek to determine Ethiopia`s (one of the countries severely affected by famine for the last years) development in its process of modernization. Ethiopia has been plagued by famine going back to the 16th century. While climatic conditions resulting in drought are widely blamed, many believe the famine was caused, in large part, by government policies. The first duty of any government is the safety and wellbeing...
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...College of Business and Economics Department of Accounting and Finance Research Proposal “The Impact of Asset Liability Management on Banks Profitability: A Comparative Study on Ethiopian Commercial Banks” Prepared by: Samson Abate ID No. GSE/1482/08 Submitted to: Samuel Kifle(Phd.) In Partial fulfilment of Business Research Methods Course January, 2016 Abstract Banks’ profitability is of utmost concern in modern economy. Banks are in a business to receive deposits or liabilities and to issue debt securities on the one hand and create or invest in assets on the other hand. Commercial Banks incur costs for their liabilities and earn income from their assets. Thus profitability of banks is directly affected by management of their assets and liabilities. In addition, different market and macroeconomic factors also influence the ability of the banks to make profits. The asset and liability base of banks in developing countries are narrower than their counterparts in developed countries. This study examines how asset and liability management together with external variables such as degree of market concentration and inflation rate impact the profitability of selected commercial banks in Ethiopia. Although impact of the management of banks’ asset and liability on their profitability has been studied by a number of researchers, the issue of banks’ profitability in Ethiopia has received scant attention from the researchers. This study is an attempt...
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...AID AND THE DUTCH-DISEASE IN ETHIOPIA Monetary Policy and Economic Research Directorate National Bank of Ethiopia Teferi Mequaninte tefmeq@yahoo.com May, 2005 SECTION ONE Introduction Following the introduction of the Structural adjustment program (SAP) in 1992 to the Ethiopian economy, there was a massive inflow of foreign aid in the form of grants, concessional loans and technical assistance. Net aid1 inflows to Ethiopia during the Derg period were around 7 percent of GDP and are doubled to 14 percent of GDP during the EPRDF regime. These elevated flows have raised a number of concerns, ranging from fears about the effect of aid inflows on the real exchange rate and export performance. The source of anxiety for all this is the Dutch disease problem of foreign aid. While seemingly beneficial foreign aid inflows may generate undesirable effects in the economy. These undesirable effects include a decline in export performance and manufacturing production caused by appreciation of the real exchange rate and resources moving out of manufacturing into other sectors (Timothy,1997). There are also concerns about aid sustainability. Specifically, while LDCs have been forced to take on greater burden of global adjustment, most donor countries have been unwilling to expand financial support for adjustment in the LDCs (Bigsten, 2003). These could be due to different motives by the donor countries. Instead of addressing the most developmental constraints...
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...Merger: Valuation Process and Evaluation of Financial Performance in case of United Insurance Company and Shama Plc By: Jemaneh Bayou January 2008 Advisor: Abebe Yitayew (Asst. Professor.) A PROJECT PAPER SUBMITTED TO THE SCHOOL OF GRADUATE STUDIES OF ADDIS ABABA UNIVERSITY IN PARTIAL FULFILLMENTS OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE IN ACCOUNTING AND FINANCE ADDIS ABABA UNIVERSITY SCHOOOL OF GRADUATE STUDIES Faculty of Business & Economics Department of Accounting & Finance Merger: Valuation Process and Evaluation of Financial Performance in case of United Insurance Company and Shama Plc By Jemaneh Bayou Hailu January 2008 Approved by board of examiners Asst. Professor Abebe Yitayew Advisor Examiner ___________________ Signature ___________________ Signature Examiner ___________________ Signature Statement of Certification This is to certify that Jemaneh Bayou has carried out his project work on the topic “Merger: Valuation Process and Evaluation of Financial Performance in case of United Insurance Company and Shama Plc” under my supervision. In my opinion, this work qualifies for submission in partial fulfillment of the requirements for the award of Degree of Masters of Science in Accounting and Finance. Signature________________ Abebe Yitayew (Asst.Professor) Project Advisor Statement of Declaration I declare that this project work is my original work. It has not been submitted for any degree/Diploma in any University. I have undertaken...
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...Interview and Analysis of Ethiopia Ethiopia is located in the Horn of Africa and is a landlocked country. The countries that border Ethiopia are Kenya to the south, Djibouti and Eritrea to the northeast, Somalia to the east, and Sudan to the west. Addis Ababa is the capital of Ethiopia and is located in the heart of the country. The population of Ethiopia is approximately 32.2 million people. The population growth continues to remain high at 2.76 percent and it’s estimated that that the population could reach 90.0 million people by 2015. Ethiopia has over 83 different languages with about 200 different dialects. The largest and most common are Oromos, Amharas, and Tigrayans. The ancient language of Ge’ez was first introduced as the official written language when the Sabeans sought refuge in Aksum. The official national language of Ethiopia is Amharic. Large widely spoken languages include; English, Arabic, French, and Italian. The languages of Ethiopia are broken down into four major language groups; Semitic, Omotic, Nilo-Saharan, and Cushitic. In Ethiopia there are two main religions, Orthodox Christianity and Islam. These religions have coexisted since Mohammed’s time. If you were to visit a church the priests are always happy to have guests. Every church has three or four entrances. The east entrance is only for the priest, the south is for women, and the north is for men. The last entrance, the western one can be used by men or women. Once inside women sit on the right...
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...review debunks their assumptions that intellectual and income differences between nations stem from genetic differences. This critique provides an extended review of the research literature that argues against these assumptions and presents a different picture from that presented by Lynn and Vanhanen about the concept of intelligence, what IQ measures and does not measure. The essay exposes the racist, sexist, and antihuman nature of the research tradition in which the authors anchored their studies and the deep methodological flaws and theoretical assumptions that appear in their book. The low standards of scholarship evident in the book render it largely irrelevant for modern science. This essay specifically deals with the IQ value of Ethiopian immigrants that came from Israel, used by the authors as representing the National Education Review Vol. 10 No. 6 http://edrev.asu.edu 2 Average IQ of Ethiopia. Most of these immigrants had rudimentary knowledge of literacy, and experienced an abrupt...
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...10-10-2013 OUTLINE - PART A The Effects of Fair-trade Coffee Trade on the Coffee Trade between Ethiopia and the United States Just like many other Sub-Saharan African countries, Ethiopia’s economy is mainly based on agricultural products. According to CIA World Factbook, “agriculture in Ethiopia accounts for 46.4% (2011) of the gross domestic product (GDP) and 85% of total employment.” As the major agricultural export crop in Ethiopia for many years, Coffee business contributes about one fourth of the country's foreign exchange earnings in each year, creates millions of working opportunities, supports and feeds more than 25% of the national population. Just like many third world coffee-planting countries, unfair coffee trade caused problems such as over-dependent on one single commodity, environmental damage and labor problems. In Ethiopia, coffee planters and their families have suffered poverty as a result of fluctuating coffee prices for ages. The implementation of producing and exporting Fair-trade certified coffee from Ethiopia to the United States, which, we believed, economically benefited Ethiopia in terms of contributing to export volume growth and national GDP; and only caused relatively mild reaction in the United States: a still-robust consumer demand and increasing import volume of Ethiopian Coffee. This study will mainly focus on the effects of Fair-trade coffee trade on the coffee trade between Ethiopia and the United States. Using data provided by UN Comtrade, World...
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...major source, Lake Victoria forming the White Nile that flows generally North through Uganda and into Sudan where it meets the Blue Nile at Khartoum, from the confluence of the White and Blue Nile, the Main Nile River flows northwards into Egypt and to the Mediterranean Sea. The Eastern Nile includes the countries of Ethiopia, Sudan, and Egypt, and encompasses the sub-basins of the Baro-Akobo-Sobat, the Blue Nile, the Tekezze-Settit-Atbara, portions of the White Nile in Sudan, and the Main Nile. All flows in the Nile are the result of rainfall upon the Ethiopian highlands and the Equatorial lakes region. While this rainfall is usually plentiful, it is not always consistent from year to year. The annual average rainfall over the entire Nile basin is approximately 600 mm, ranging from 1200-1600 mm at the headwater regions to near zero at the most northern part of the basin. The seasonal fluctuations of rainfall in the Ethiopian highlands are much greater than those at the source of the White Nile. However, depending on the strength of the monsoon over Ethiopia, the total flow volume from year to year can vary dramatically. There are two major basins within the Nile basin. These two major basins are the eastern Nile that is composed of Abbay (Blue Nile), Tekeze (Atbara), Baro Akobo (Sobat), and the...
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...INTRODUCTION Cobblestones are small, chiseled rectangular stones formerly used to cover road surfaces ,typically either set in sand or similar selected material, or are bound together with mortar. Paving with cobblestones allows a road to be heavily used all year long and not getting muddy in wet weather or dusty in dry weather. Cobblestones set in sand have the environmental advantage of being permeable paving, and of moving rather than cracking with movements in the ground. INTRODUCTION con’t It was in early 2005 that the concept of using cobblestones to construct roads was first introduced to Ethiopia. Faced with fast-growing cities, inadequate urban infrastructure, and a large youthful population in need of employment, the Ethiopian Government turned to an innovative solution: Cobblestone road production throughout the country, driven by community participation and local materials. In recent years, cobblestone road creation has become one of the most successful infrastructure and job creation programmes in the country, with tremendous benefits for the urban poor. It has created hundreds of thousands of jobs, greatly improved urban mobility, and built collaborative relationships between communities and local authorities. INTRODUCTION con’t It is labour-intensive, creating jobs as well as opportunities for construction entrepreneurs. It uses natural and local materials that are plentiful. It is also cost-effective compared to concrete and asphalt roads, easy...
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