News / Africa

Ethiopia Focuses on Entrepreneurs to Maintain Economic Growth

People work on the assembly line at a shoe factory in Dukem, Ethiopia, April 19, 2012.People work on the assembly line at a shoe factory in Dukem, Ethiopia, April 19, 2012.
x
People work on the assembly line at a shoe factory in Dukem, Ethiopia, April 19, 2012.
People work on the assembly line at a shoe factory in Dukem, Ethiopia, April 19, 2012.
The Ethiopian government and the United Nations want to train more than 200,000 entrepreneurs in the East African country. Both believe Ethiopia needs a stronger private sector to maintain its fast economic growth.
 
The Ethiopian government and the United Nations Development Program, UNDP, have launched a three-year program to train the entrepreneurs. The say the businesses established by these new entrepreneurs potentially could create about 1.2 million jobs.
 
Ethiopia’s minister of urban development and construction, Mekuria Haile, said the mindset of Ethiopians needs to be changed.
 
“In spite [instead] of looking for jobs and living as employees, to challenge their attitudes to become social and economic entrepreneurs who will create jobs for others. Viable and competitive enterprises that will become the backbone and foundation of the country's industrial growth and transformation,” said Mekuria.

The focus is both on start-up entrepreneurs and small and medium enterprises. The development program is based on four pillars: institutional development, entrepreneurial development training, business development services and partnerships.
 
UNDP resident representative to Ethiopia, Eugene Owusu, said the four areas deal with the key challenges that entrepreneurs face in Ethiopia.
 
“More needs to be done to create a more conducive environment to allow business to thrive. The labyrinth of bureaucratic controls, lack of access to credit, a convoluted logistic system, amongst others, all require priority attention,” said Owusu.
 
Ethiopia is one of the world's fastest growing economies, but still ranks only 174 out of 187 countries on the UNDP Human Development Index. Although human development has improved by 32 percent in the last two decades, almost a third of the country still lives below the poverty line.
 
Ethiopia has known double-digit economic growth for the last few years and has implemented the ambitious Growth and Transformation Plan to become a middle-income country by 2025. Much of the projected growth is based on the public sector, an approach that is difficult to maintain according to the International Monetary Fund [IMF].

The goal now, according to Ethiopia's leaders, is to encourage a bigger role for the private sector in the East African country.
 
Ethiopia’s Prime Minister Hailemariam Desalegn pointed out that the new three-year program will not establish new businesses just for the sake of having more entrepreneurs in the country.
 
“The government will not be in the business of propping up enterprises that are not competitive in the name of creating employment opportunity. That, we believe, is counterproductive,” said Hailemariam.

Ethiopia is Africa's second most populous nation after Nigeria. Hailemariam said creating jobs for young workers is imperative, as a majority of the nation is under 25 years old.
 
“As much as our huge population can be a source of strength and growth, it could also be a source of vulnerability and social tension unless we are in a position to offer job opportunities that can absorb this huge chunk of our population,” said Hailemariam.

The first round of trainees, like marketing entrepreneur Azeb Assefa, ended their training on the day the entrepreneur program was officially launched. She said the training helped her improve her business skills as she learned to work on her improvement areas.
 
“I have weakness in networking, and I have a weakness in risk-taking and persistence. So the techniques that have been given for us to improve such things helped me,” she said.

Entrepreneurs graduating from the program, such as Azeb, are expected to train others.
 
The program will cost $26 million. So far, UNDP has allocated only $6 million. The Ethiopian government and UNDP say they will come up with the rest of the needed money.

You May Like

Multimedia Obama, Modi Resolve Nuclear Deal Issues

Leaders find resolution on issues of liability of suppliers to India in event of nuclear accident, US demands to track whereabouts of material supplied to country More

WHO's Late Efforts in Tackling Ebola Highlight Need for Reform

Health experts debate measures to reform agency’s response to global public health emergencies in special one-day session on deadly outbreak More

One Tumultuous Year in Power for CAR's President

As sectarian violence raged across Central African Republic, interim President Catherine Samba-Panza has Herculean task: to end civil war and put country back on right track More

This forum has been closed.
Comment Sorting
Comments
     
by: Alem
February 23, 2013 9:58 AM
Mimi, Ph.D, I see you don't check your facts. You assumed I am "Diaspora pundit" [whatever that means]. Do you really believe money-laundering and corruption in Ethiopia was due to "private sector, and weak tax base?" Why was this problem NOT addressed in two decades when all we have a government run by one party and no oposition? You think multi-billion conglomerate EFFORT [run by the late Prime Minister's wife and friends from Tigray] is private? At least you admitted to the fact that there are "the usual suspects of African dictators and their cronies." But to then say they "DO NOT have as much part in the money laundering scheme as members of the private sector" is simply absurd. You must not understand how dictators run their affairs. If you are serious about all this write on what happened to the tens of millions of aid money collected in the name of the hungry in the early 1980s, to date unaccounted for and in the "private" accounts of EFFORT. The 8.3 billions figure you grudgingly accept is the tip of the iceberg.

Let us turn to the late PM Meles' response to a young questioner at the World Economic Forum on Africa regarding corruption. It did not take the Prime Minister to point fingers to "greedy foreign corporations as a main driver of corruption." It is always the imperialist, the terrorist, the Diaspora, etc, and NEVER the rulers [this being the case where there is dictatorship and no accountability]. I will quote you from report at the Forum:

"What is the poison that leaders face when you go to national palaces, and transforms people with vision sometimes into ordinary thieves? Let's start with the total amount of loot in Africa, and what our role as leaders in that loot[ing] is," said Meles. "The vast majority of the loot[ing] is done by properly organized companies through all sorts of accounting gimmicks."

Meles said African leaders are forced to be facilitators for foreign companies who demand favors in return for their investment that might means jobs for their people.

"It's a difficult thing to manage because our bargaining cards are very limited," he said. "We need these companies to create jobs, in order for them to come to Africa. The image is very negative, so the risk is artificially spiked. And if the risk is artificially spiked, the return has to be commensurate with the risk. And so it's difficult to attract them without extraordinary returns."

The Ethiopian leader said that sometimes leaders give in to temptation.

"Sometimes we facilitate without being paid," he said. "At other times we say, 'Okay, if your family's farm is being looted, why not join in?' I think that is the most insidious form of corruption. It affects everybody, including those whose hands are not in the till." It is unfortunate that a highly educated individual like yourself [with a Ph.D.] refuses to deal with what is so evident to a lay person.

In Response

by: Selam B. from: Ethiopia
February 23, 2013 11:03 PM
Alem, you quote Meles as saying, "The vast majority of the loot[ing] is done by properly organized companies through all sorts of accounting gimmicks." He's clearly pointing to the UNDP report itself, which you refuse to read and choose to believe report says the opposite, no surprise. C'est fini!

"Fools," is what the Obama's UN Sec. Susan Rice called Ethiopian opposition groups, and the whole country saw that on live TV. God bless her!


by: Alem from: Ethiopia
February 21, 2013 3:56 PM
Marthe, It was the UN that reported nearly 12 billion dollars of aid money have been transferred to a foreign bank account [UN Financial Integrity Report 2011] and now the same UN wants to throw away tens of millions of dollars? I have a simple question. How could a nation where corruption has been deepening every year for the past two decades develop and equitably distribute resources? [It has not happened yet.] How could a nation develop where it is it a terrorist act to criticize the ruling party [in this case only one party] without a private press? without fair elections? when the state is the sole proprietor of the commanding heights and not subject to rule of law? when the ruling party is sustained with a 3 billion-dollar aid package every single year? I tend to agree with the the minister of urban development and construction who said [sic] "the mindset of Ethiopians needs to be changed." Unless the minister and his party deny being Ethiopians change he glibly referred to should begin with them. Let him and his party first release journalists Eskinder Nega, Reeyot Alemu and hundreds more prisoners of conscience before lecturing us on a new mindset.

In Response

by: Mimi Ph.D from: Ethiopia
February 22, 2013 10:23 AM
Alem, Diaspora pundits like you have never really read the UNDP report you quote, it covered 1990-2008, $8.3 Billion lost...And report faults the private sector, and weak tax base.

"...Finding of the report that raised eyebrows among panelists was the revelation that the usual suspects of African dictators and their cronies DO NOT have as much part in the money laundering scheme as members of the private sector."


by: Ras Mitat from: Ethiopia
February 19, 2013 10:32 PM
Another useless project to finance all expenses paid lifestyle of foreign NGOs.

$26 Million over 3 years to give seminars on how to better network and sell yourself...Big joke!

They could spend the money on a vocational school to train certified mechanics, plumbers, electricians...But solving problems also ends the need for charity, closes their budget, and no more NGO lifestyle!

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Worldwide Photo Workshops Empower Youthi
X
Julie Taboh
January 23, 2015 11:08 PM
Last September, 20 young adults from South Sudan took part in a National Geographic Photo Camp. They are among hundreds of students from around the world who have learned how to use a camera to tell the stories of the people in their communities through the powerful medium of photography. Three camp participants talked about their experiences recently on a visit to Washington. VOA’s Julie Taboh reports.
Video

Video Worldwide Photo Workshops Empower Youth

Last September, 20 young adults from South Sudan took part in a National Geographic Photo Camp. They are among hundreds of students from around the world who have learned how to use a camera to tell the stories of the people in their communities through the powerful medium of photography. Three camp participants talked about their experiences recently on a visit to Washington. VOA’s Julie Taboh reports.
Video

Video US, Japan Offer Lessons as Eurozone Launches Huge Stimulus

The Euro currency has fallen sharply after the European Central Bank announced a bigger-than-expected $67 billion-a-month quantitative easing program Thursday - commonly seen as a form of printing new money. Henry Ridgwell reports for VOA from London on whether the move might rescue the eurozone economy -- and what lessons have been learned from similar programs around the world.
Video

Video Nigerian Elections Pose Concern of Potential Conflict in 'Middle Belt'

Nigeria’s north-central state of Kaduna has long been the site of fighting between Muslims and Christians as well as between people of different ethnic groups. As the February elections approach, community and religious leaders are making plans they hope will keep the streets calm after results are announced. Chris Stein reports from the state capital, Kaduna.
Video

Video As Viewership Drops, Obama Puts His Message on YouTube

Ratings reports show President Obama’s State of the Union address this week drew the lowest number of viewers for this annual speech in 15 years. White House officials anticipated this, and the president has decided to take a non-traditional approach to getting his message out. VOA White House correspondent Luis Ramirez reports.
Video

Video S. Korean Businesses Want to End Trade Restrictions With North

Business leaders in South Korea are calling for President Park Geun-hye to ease trade restrictions with North Korea that were put in place in 2010 after the sinking of a South Korean warship.Pro-business groups argue that expanding trade and investment is not only good for business, it is also good for long-term regional peace and security. VOA’s Brian Padden reports.
Video

Video US Marching Bands Grow Into a Show of Their Own

The 2014 Super Bowl halftime show was the most-watched in history - attracting an estimated 115 million viewers. That event featured pop star Bruno Mars. But the halftime show tradition started with marching bands, which still dominate the entertainment at U.S. high school and college American football games. But as Enming Liu reports in this story narrated by Adrianna Zhang, marching bands have grown into a show of their own.
Video

Video Secular, Religious Kurds Face Off in Southeast Turkey

Turkey’s predominantly Kurdish southeast has been rocked by violence between religious and secular Kurds. Dorian Jones reports on the reasons behind the stand-off from the region's main city of Diyarbakir, which suffered the bloodiest fighting.
Video

Video Kenya: Misuse of Antibiotics Leading to Resistance by Immune System

In Kenya, the rise of drug resistant bacteria could reverse the gains made by medical science over diseases that were once treatable. Kenyans could be at risk of fatalities as a result if the power in antibiotics is not preserved. Lenny Ruvaga has more on the story from Nairobi.
Video

Video Solar-Powered Plane Getting Ready to Circumnavigate Globe

Pilots of the solar plane that already set records flying without a drop of fuel are close to making their first attempt to fly the craft around the globe. They plan to do it in 25 flying days over a five month period. VOA’s George Putic reports.
Video

Video How Experts Decide Ethiopia Has the Best Coffee

Ethiopia’s coffee has been ranked as the best in the world by an international group of coffee connoisseurs. Not surprisingly, coffee is a top export for the country. But at home it is a source of pride. Marthe van der Wolf in Addis Ababa decided to find out what makes the bean and brew so special and how experts make their determinations.
Video

Video Yazidi Refugees at Center of Political Fight Between Turkey, Kurds

The treatment of thousands of Yazidis refugees who fled to Turkey to escape attacks by Islamic State militants has become the center of a dispute between the Turkish government and the country's pro-Kurdish movement. VOA's Dorian Jones reports.
Video

Video World’s Richest 1% Forecast to Own More Than Half of Global Wealth

The combined wealth of the world's richest 1 percent will overtake that of the remaining 99 percent at some point in 2016, according to the anti-poverty charity Oxfam. Campaigners are demanding that policymakers take action to address the widening gap between the ‘haves’ and the ‘have nots’, as Henry Ridgwell reports for VOA from London.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid