Academic literature on the topic 'Product management – Ethiopia'

The aim of the study was to assess the impact of credit risk management on the profitability commercial banks in Ethiopia. Secondary data was gathered from National Bank of Ethiopia for ten year periods (2010-2019). The study adopted Correlation analysis and fixed effect Model. Return on Asset was used to measure profitability of commercial banks, bank specific factors(Capital adequacy, Loan and Advances to total deposit, Non- Performing Loans, Bank size and Liquidity and macroeconomic factors (Inflation and Gross Domestic Product) as indicators of credit risk management. The findings showed that Credit Risk Management in terms of bank specific and macroeconomic factors has significant impact on profitability of commercial banks in Ethiopia. Also the result displayed that profitability of commercial banks is not affected by the amount of non- performing loans during the study. The study recommended that banks’ credit risk management should not give due devotion only to the internal factors but also to external factors exclusively (Gross Domestic Product and Inflation) in order to minimize their negative impact on profitability of commercial banks in Ethiopia

Bamboo is one of the more important natural resources in Ethiopia and contributes to the bioeconomy as a potential source for high-value products. While the country is the largest producer of bamboo in Africa, the existing utilization of the bamboo sector in Ethiopia remains under-developed, with little value addition. This study identifies the current market challenges and opportunities for future developments of the northern Ethiopian bamboo sector, with a focus on the Injibara township. This research adopts the “value web” approach to assess the potentials of different product lines that create the bamboo biomass value web. We utilize qualitative data collection methods, in particular, semi-structured interviews and informal focus group discussions with key stakeholders. Our findings suggest that bamboo farmers in Injibara are constrained by a lack of local demand and market for bamboo products with high-value addition, leading to an absence of product diversification and innovation. Furthermore, there is an overreliance on foreign technology and methods that are poorly matched for local needs. We recommend that policymakers invest in targeted and effective training strategies on bamboo cultivation and processing. Furthermore, farmers can benefit from decreasing their reliance on middle men with cooperatives or contract arrangements.

Purpose The purpose of this paper is to identify pathways to improve the performance and competitiveness of Ethiopia's tourism sector using coffee as one essential tourism experience, thereby improving the socio-economic conditions of the local communities who depend on coffee for their livelihoods. Design/methodology/approach Based upon qualitative focus group discussions undertaken with key informants in both the coffee and tourism sectors in Ethiopia. Findings Despite the existing tourism development potential, Ethiopia has not yet fully exploited this position. While the country uses coffee to assist its destination marketing strategies, practical interventions to position coffee as a primary tourism product are absent and remain of critical importance. Research limitations/implications In this exploratory study key informant participants from government and industry share their experience within this policy domain. It is acknowledged that future research aiming to provide a fuller picture of governance in this domain would also include the perspective of community-level coffee growers. Practical implications Paramount among the implications of this study is the need to enhance cross-sectoral planning and collaboration and to establish a bridging organisation that will help integrate the agricultural (coffee) sector and the tourism sector. Social implications This study identifies key governance-related obstacles to addressing rural poverty through coffee-related agri-tourism initiatives in Ethiopia. Originality/value This paper addresses, from a governance perspective, the obstacles and opportunities for coffee as a tourism product/experience in Ethiopia. The paper identifies what interventions and innovations in policy and practice are necessary to enhance the role of Ethiopia's coffee culture in the performance of the country's tourism sector.

Competition is truly global. Higher product quality is required for a company to become more competitive both locally and in international markets. Any textile company basically competes on its reputation for quality, reliability, and capability of processes and costs of quality and delivery. Currently, most of textile industries in Ethiopia are suffering from quality-related problems due to high process variations. These problems include poor performance of manufacturing products in the export market, insufficient qualitative raw material supply, customer dissatisfaction, low productivity, and poor utilization of the resources. These problems led to the manufacturing of low-quality products with a high cost, and because of this, most of the Ethiopian textile companies in the country are not competitive and profitable. The main objective of this study is to examine the existing traditional models of quality and to introduce an improved and emerged quality measuring system based on a methodological approach by using six sigma total quality management tools and analyzed by STATA 14.0 software. The analytical findings show that the application of total quality management (TQM) programs, tools, and techniques has been expanded beyond the traditional quality concepts and has improved the acceptable quality level of the product by 57.96% with a low cost.

Abstract Although Ethiopia is one of the Heavily Indebted Poor Countries (HIPC), there is a lack of empirical studies about the determinants of its external indebtedness. This paper aims to fill this gap by examining the macroeconomic determinants of the external indebtedness of Ethiopia between 1981 and 2016, using the two- and three-gap models as a theoretical framework and an autoregressive distributed lag bound testing approach. The result shows that in the long run, the savings-investment gap, trade deficit, fiscal deficit, and debt service have a positive and significant impact on external indebtedness. However, the growth rate of gross domestic product, trade openness, and inflation negatively and significantly affect the external indebtedness of the country. These results coincide with the predictions of the two- and three-gap models of the theoretical framework. The study argues that appropriate macroeconomic, social, and supply-side policies are essential to reducing the external indebtedness of Ethiopia.

Purpose Climate change has become one of the most important development challenges worldwide. It affects various sectors, with agriculture the most vulnerable. In Ethiopia, climate change impacts are exacerbated due to the economy’s heavy dependence on agriculture. The Ethiopian Government has started to implement its climate-resilient green economy (CRGE) strategy and reduce CO2 emissions. Therefore, the purpose of this study is to examine the impact of CO2 emission on agricultural productivity and household welfare. Design/methodology/approach This study aims to fill these significant research and knowledge gaps using a recursive dynamic computable general equilibrium model to investigate CO2 emissions’ impact on agricultural performance and household welfare. Findings The results indicate that CO2 emissions negatively affect agricultural productivity and household welfare. Compared to the baseline, real agricultural gross domestic product is projected to be 4.5% lower in the 2020s under a no-CRGE scenario. Specifically, CO2 emissions lead to a decrease in the production of traded and non-traded crops, but not livestock. Emissions also worsen the welfare of all segments of households, where the most vulnerable groups are the rural-poor households. Originality/value The debate in the area is not derived from a rigorous analysis and holistic economy-wide approach. Therefore, the paper fills this gap and is original by value and examines these issues methodically.

Purpose Corporate social responsibility (CSR) often gives a humanistic touch to the marketing activities of firms and even creates the atmosphere that businesses are reliable. Yet, little is known about its interaction effect on the relationship between market orientation (MO) and financial and marketing performance in emerging economies. The present study aims to comparatively examine the interaction effect of CSR on the direct link between MO and financial and marketing performance in manufacturing firms in Ghana and Ethiopia. Design/methodology/approach The interaction effect of CSR is examined using a quantitative methodological study design. A total of 439 usable questionnaires across manufacturing firms in Ghana and Ethiopia were collected and analyzed using SEM-PLS 3.0. Analytically, the study used product indicator approach to test the interaction effect of CSR on the nexus between MO and financial and marketing performance, while PLS-multigroup analysis (PLS-MGA) was used to test the significance of the observed differences in the results among the manufacturing firms in the two countries. Findings Results show that MO significantly improves financial and marketing performance. However, CSR reveals both “suppression” and “spurious” effects on the direct link between MO and financial and marketing performance under varying market conditions. The relationship between MO and financial performance is weakened in Ghanaian manufacturing firms but is strengthened in Ethiopian manufacturing firms when the level of CSR is high. Results, moreover, show that the nexus between MO and marketing performance is strengthened when CSR actions are high in both Ghanaian and Ethiopian manufacturing firms. The PLS-MGA revealed that these differences in findings in the two countries are statistically significant. Practical implications The findings suggest that company managers and marketing practitioners can use CSR in their marketing orientation campaigns to keep high performance and to remain competitive in today’s globalized market. Social implications Findings illustrate that incorporation of social interests and sustainability initiatives into firms’ marketing orientation strategies can meet stakeholders’ interest and expectation. Originality/value This is one of the few studies that examine comparatively the interaction effect of CSR on the MO–financial and marketing performance linkage in two emerging economies. The study extends our understanding of the RBV and stakeholder theories regarding the role of CSR in firms’ marketing strategies.

Ethiopia, among the fastest growing economies worldwide, is witnessing rapid urbanization and industrialization that is fueled by greater energy consumption and high levels of CO2 emissions. Currently, Ethiopia is the third largest CO2 emitter in East Africa, yet no comprehensive study has characterized the major drivers of economy-wide CO2 emissions. This paper examines the energy-related CO2 emissions in Ethiopia, and their driving forces between 1990 and 2017 using Kaya identity combined with Logarithmic Mean Divisia Index (LMDI) decomposition approach. Main findings reveal that energy-based CO2 emissions have been strongly driven by the economic effect (52%), population effect (43%), and fossil fuel mix effect (40%) while the role of emission intensity effect (14%) was less pronounced during the study period. At the same time, energy intensity improvements have slowed down the growth of CO2 emissions by 49% indicating significant progress towards reduced energy per unit of gross domestic product (GDP) during 1990-2017. Nonetheless, for Ethiopia to achieve its 2030 targets of low-carbon economy, further improvements through reduced emission intensity (in the industrial sector) and fossil fuel share (in the national energy mix) are recommended. Energy intensity could be further improved by technological innovation and promotion of energy-frugal industries.

A challenge in addressing climate risk in developing countries is that many regions have extremely limited formal data sets, so for these regions, people must rely on technologies like remote sensing for solutions. However, this means the necessary formal weather data to design and validate remote sensing solutions do not exist. Therefore, many projects use farmers’ reported perceptions and recollections of climate risk events, such as drought. However, if these are used to design risk management interventions such as insurance, there may be biases and limitations which could potentially lead to a problematic product. To better understand the value and validity of farmer perceptions, this paper explores two related questions: (1) Is there evidence that farmers reporting data have any information about actual drought events, and (2) is there evidence that it is valuable to address recollection and perception issues when using farmer-reported data? We investigated these questions by analyzing index insurance, in which remote sensing products trigger payments to farmers during loss years. Our case study is perhaps the largest participatory farmer remote sensing insurance project in Ethiopia. We tested the cross-consistency of farmer-reported seasonal vulnerabilities against the years reported as droughts by independent satellite data sources. We found evidence that farmer-reported events are independently reflected in multiple remote sensing datasets, suggesting that there is legitimate information in farmer reporting. Repeated community-based meetings over time and aggregating independent village reports over space lead to improved predictions, suggesting that it may be important to utilize methods to address potential biases.

In order to enhance the attention given by farmers, government and concerned bodies, the socio-economic contributions of small-scale plantations should be studied. This study identified the socio-economic benefits of small-scale plantations in the Godera Woreda of Gambella Region, Ethiopia. Data were collected through questioners and key informant interviews from 208 farmers and 8 key informants. Descriptive statistics and a regression model were used to analyse the data. The results of the study revealed that of the average 1.72 ha of land possessed by small-scale farmers 0.81 ha was used for tree plantations. The main types of plantations were coffee, eucalyptus, banana and avocado. The mean annual production was 645 kg, 290 kg and 271 kg for coffee, banana and avocado, respectively. Small-scale farmers earned a mean of 4675.56 Birr from plantations which was 32.37 % of the total income. The Woreda government gained 365,022 Birr royalty payment during 2015/16.The regression results show income from plantations significantly affects the annual income of small-scale farmers (β = 0.436, p < 0.01). Access to basic services, land use change, expenditures, population growth, employment opportunities, and migration are social changes supported by small-scale plantations. The availability of a favourable environment, extension service, land, and peace are opportunities of plantations. In contrast, challenges of small-scale plantations are disease, low prices for product, lack of improved plantation varieties, shortage of land, lack of demand, climate change and rainfall reduction, lack of government support, and high transportation costs. It is recommended to strengthen the small-scale plantations for better positive socio-economic contributions of the sector through supporting the opportunities and management of identified challenges.

The most perplexing question of business organizations today is how to get and sustain competitive advantage. The dependable answer to this question, as Peter Drucker stated, is defining a business in terms of customer values and designing innovation activities to create those values. Hence, market orientation and innovation are the two complementary pillars of success. This research, therefore, develops a conceptual model to examine how 1) internal factors influence the development of market orientation and innovation; and 2) market orientation and innovation impact on the competitiveness of manufacturing businesses in Ethiopia, a least developed country in sub-Sahara Africa. Market and innovation orientations have been broadly recognized as performance antecedents in the strategic management literature. The performance impact of these orientations is extensively examined in the developed countries’ business environments. Studies also indicate that market and innovation orientations affect performance in situations where the competitive intensity is high. However, literature lacks adequate empirical evidence to determine whether market and innovation orientations have positive impact on performance in the least developed countries’ economies; it is also deficient with the required literature to confirm whether the impact of these orientations on performance is minimal in the least economically developed environment where competitive intensity is low. The other shortcoming in the strategic orientation literature is the heterogeneity in defining and measuring market orientation constructs. Market orientation is defined from behavioral, cultural, capability, and integrationist perspectives. Despite the contention on what the integrationist perspective suggests, very limited number of studies applies such comprehensive conceptualization. The study, therefore, is designed to fill these voids in the literature by designing a comprehensive model and testing it in the least developed context. From practical point of view, following the current encouraging economic growth of Ethiopia, changes have been observed on the competitiveness of the business environment. In response to the growing competitiveness of the business environment, organizations should adopt relevant orientations and practices; i.e., practices recognized as appropriate to the western environment. Hence, testing the validity of the sound managerial orientations and practices, based on scientifically accepted procedure in the least developed context, is mandatory before making use of them. The research is conceptually rooted in the argument of resource based view and its extension- the dynamic capability. Based on this, the study a) models strategic orientations and managerial practices as capabilities that affect competitive advantage of firms; b) reviews literature on market orientation, innovation, marketing capabilities, organizational culture, and managerial practices to theoretically validate the proposed relationships in the conceptual model; and c) develops eight main hypotheses for empirical verifications. The investigation pursues positivist paradigm. It applies quantitative research design where the study tests the proposed relationships quantitatively by analyzing 204 usable responses (n=204) of the selected manufacturing companies. The findings show that 1) market orientation and innovation have positive and significant effect on competitiveness of the manufacturing companies in Ethiopia; 2) the level of market orientation and its impact on competitiveness is influenced by sound employee training program, market based reward system, effective marketing program, and organizational culture that emphasize change, entrepreneurship, and achievement orientation; 3) the level of innovation and its impact on competitiveness is influenced by effective marketing program and organizational culture that emphasize change (i.e., adhocracy culture) and control over the change process (i.e., the hierarchy culture); 4) the effect of market orientation and innovation on competitiveness is stronger for the younger and larger organizations when compared to the older and smaller ones, respectively. Based on these findings, the study suggests that managers, beyond ensuring the smooth running of day-to-day operations, should focus on marketplace changes by adopting and developing relevant orientations (i.e., market and innovation orientations) via improving the culture, structure, and other relevant capabilities.
Business Management
D.B.L.

M.K. Mikels and Company is a manufacturer that serves mainly as a supplier for the building industry in Israel. The company makes glues and related products used to construct buildings. To begin with, several factors have contributed to the current high price of housing in Israel, including waves of immigration from Russia and Ethiopia during the 1990s, demand created by young couples for housing, and heavy population density in the main cities. These factors particularly accelerated demand for construction of new apartments in this decade, giving rise to an increase in activity for the Israeli construction industry and its suppliers, including M.K. Mikels.

In the early 20th century, coffee wilt disease (CWD) caused by the vascular wilt pathogen, Fusarium xylarioides, spread across Africa destroying coffee trees, reducing yields and significantly impacting producer livelihoods. Through systematic sanitation and establishment of breeding programmes in affected countries, CWD appeared to decline. However, the disease re-emerged and increased to epidemic proportions in the 1990s affecting robusta coffee in DRC, Uganda and Tanzania and arabica coffee in Ethiopia. In 1999, 14.5 million robusta coffee trees were estimated to have been destroyed in Uganda alone. This chapter discusses the history, impact, symptoms, cause and spread of CWD. A summary of the Regional Coffee Wilt Programme (RCWP) which examined many aspects of the disease and its management is also provided. . Future research trends include host specificity, underlying resistance mechanisms and the role of alternative hosts. Investigation of pathogen ecology is needed to allow greater focus on agroecological management practices.

Active volcanic reagions and a vibrant tourism industry may at first consideration seem to be an unlikely combination. However, even just a cursory search on the Internet brings up a whole range of tours, experiences and accommodation from Hawaii to Iceland, Ethiopia to Japan. The attraction extends beyond the dramatic landscapes of perfect cone shaped peaks, as rich volcanic soils often produce wide arrays of flora and fauna. Equally, the promise of plentiful harvests has long drawn dense human habitation around the world’s volcanoes. Thus further layers of cultural, religious and agricultural patrimony can be seen to draw tourists in to visiting these potentially dangerous sites. As documented across eruptions over the centuries, a very thin line exists between natural drama and disaster. Hence a burgeoning body of research has evolved, from the geological understanding of when and how eruptions occur, to risk management and prevention for the populations living around active volcanoes. More recently multidisciplinary teams have emerged to create bridges between the volcanologists, emergency managers, social scientists and community representatives to ensure effective transferral of information alongside the construction and implementation of robust crisis plans. However, little has been written with respect to how destinations near to active volcanic sites may mitigate often much needed economic growth through sustainable tourism development with the demands required for effective risk management.

This report maps the African landscape of Open Science – with a focus on Open Data as a sub-set of Open Science. Data to inform the landscape study were collected through a variety of methods, including surveys, desk research, engagement with a community of practice, networking with stakeholders, participation in conferences, case study presentations, and workshops hosted. Although the majority of African countries (35 of 54) demonstrates commitment to science through its investment in research and development (R&D), academies of science, ministries of science and technology, policies, recognition of research, and participation in the Science Granting Councils Initiative (SGCI), the following countries demonstrate the highest commitment and political willingness to invest in science: Botswana, Ethiopia, Kenya, Senegal, South Africa, Tanzania, and Uganda. In addition to existing policies in Science, Technology and Innovation (STI), the following countries have made progress towards Open Data policies: Botswana, Kenya, Madagascar, Mauritius, South Africa and Uganda. Only two African countries (Kenya and South Africa) at this stage contribute 0.8% of its GDP (Gross Domestic Product) to R&D (Research and Development), which is the closest to the AU’s (African Union’s) suggested 1%. Countries such as Lesotho and Madagascar ranked as 0%, while the R&D expenditure for 24 African countries is unknown. In addition to this, science globally has become fully dependent on stable ICT (Information and Communication Technologies) infrastructure, which includes connectivity/bandwidth, high performance computing facilities and data services. This is especially applicable since countries globally are finding themselves in the midst of the 4th Industrial Revolution (4IR), which is not only “about” data, but which “is” data. According to an article1 by Alan Marcus (2015) (Senior Director, Head of Information Technology and Telecommunications Industries, World Economic Forum), “At its core, data represents a post-industrial opportunity. Its uses have unprecedented complexity, velocity and global reach. As digital communications become ubiquitous, data will rule in a world where nearly everyone and everything is connected in real time. That will require a highly reliable, secure and available infrastructure at its core, and innovation at the edge.” Every industry is affected as part of this revolution – also science. An important component of the digital transformation is “trust” – people must be able to trust that governments and all other industries (including the science sector), adequately handle and protect their data. This requires accountability on a global level, and digital industries must embrace the change and go for a higher standard of protection. “This will reassure consumers and citizens, benefitting the whole digital economy”, says Marcus. A stable and secure information and communication technologies (ICT) infrastructure – currently provided by the National Research and Education Networks (NRENs) – is key to advance collaboration in science. The AfricaConnect2 project (AfricaConnect (2012–2014) and AfricaConnect2 (2016–2018)) through establishing connectivity between National Research and Education Networks (NRENs), is planning to roll out AfricaConnect3 by the end of 2019. The concern however is that selected African governments (with the exception of a few countries such as South Africa, Mozambique, Ethiopia and others) have low awareness of the impact the Internet has today on all societal levels, how much ICT (and the 4th Industrial Revolution) have affected research, and the added value an NREN can bring to higher education and research in addressing the respective needs, which is far more complex than simply providing connectivity. Apart from more commitment and investment in R&D, African governments – to become and remain part of the 4th Industrial Revolution – have no option other than to acknowledge and commit to the role NRENs play in advancing science towards addressing the SDG (Sustainable Development Goals). For successful collaboration and direction, it is fundamental that policies within one country are aligned with one another. Alignment on continental level is crucial for the future Pan-African African Open Science Platform to be successful. Both the HIPSSA ((Harmonization of ICT Policies in Sub-Saharan Africa)3 project and WATRA (the West Africa Telecommunications Regulators Assembly)4, have made progress towards the regulation of the telecom sector, and in particular of bottlenecks which curb the development of competition among ISPs. A study under HIPSSA identified potential bottlenecks in access at an affordable price to the international capacity of submarine cables and suggested means and tools used by regulators to remedy them. Work on the recommended measures and making them operational continues in collaboration with WATRA. In addition to sufficient bandwidth and connectivity, high-performance computing facilities and services in support of data sharing are also required. The South African National Integrated Cyberinfrastructure System5 (NICIS) has made great progress in planning and setting up a cyberinfrastructure ecosystem in support of collaborative science and data sharing. The regional Southern African Development Community6 (SADC) Cyber-infrastructure Framework provides a valuable roadmap towards high-speed Internet, developing human capacity and skills in ICT technologies, high- performance computing and more. The following countries have been identified as having high-performance computing facilities, some as a result of the Square Kilometre Array7 (SKA) partnership: Botswana, Ghana, Kenya, Madagascar, Mozambique, Mauritius, Namibia, South Africa, Tunisia, and Zambia. More and more NRENs – especially the Level 6 NRENs 8 (Algeria, Egypt, Kenya, South Africa, and recently Zambia) – are exploring offering additional services; also in support of data sharing and transfer. The following NRENs already allow for running data-intensive applications and sharing of high-end computing assets, bio-modelling and computation on high-performance/ supercomputers: KENET (Kenya), TENET (South Africa), RENU (Uganda), ZAMREN (Zambia), EUN (Egypt) and ARN (Algeria). Fifteen higher education training institutions from eight African countries (Botswana, Benin, Kenya, Nigeria, Rwanda, South Africa, Sudan, and Tanzania) have been identified as offering formal courses on data science. In addition to formal degrees, a number of international short courses have been developed and free international online courses are also available as an option to build capacity and integrate as part of curricula. The small number of higher education or research intensive institutions offering data science is however insufficient, and there is a desperate need for more training in data science. The CODATA-RDA Schools of Research Data Science aim at addressing the continental need for foundational data skills across all disciplines, along with training conducted by The Carpentries 9 programme (specifically Data Carpentry 10 ). Thus far, CODATA-RDA schools in collaboration with AOSP, integrating content from Data Carpentry, were presented in Rwanda (in 2018), and during17-29 June 2019, in Ethiopia. Awareness regarding Open Science (including Open Data) is evident through the 12 Open Science-related Open Access/Open Data/Open Science declarations and agreements endorsed or signed by African governments; 200 Open Access journals from Africa registered on the Directory of Open Access Journals (DOAJ); 174 Open Access institutional research repositories registered on openDOAR (Directory of Open Access Repositories); 33 Open Access/Open Science policies registered on ROARMAP (Registry of Open Access Repository Mandates and Policies); 24 data repositories registered with the Registry of Data Repositories (re3data.org) (although the pilot project identified 66 research data repositories); and one data repository assigned the CoreTrustSeal. Although this is a start, far more needs to be done to align African data curation and research practices with global standards. Funding to conduct research remains a challenge. African researchers mostly fund their own research, and there are little incentives for them to make their research and accompanying data sets openly accessible. Funding and peer recognition, along with an enabling research environment conducive for research, are regarded as major incentives. The landscape report concludes with a number of concerns towards sharing research data openly, as well as challenges in terms of Open Data policy, ICT infrastructure supportive of data sharing, capacity building, lack of skills, and the need for incentives. Although great progress has been made in terms of Open Science and Open Data practices, more awareness needs to be created and further advocacy efforts are required for buy-in from African governments. A federated African Open Science Platform (AOSP) will not only encourage more collaboration among researchers in addressing the SDGs, but it will also benefit the many stakeholders identified as part of the pilot phase. The time is now, for governments in Africa, to acknowledge the important role of science in general, but specifically Open Science and Open Data, through developing and aligning the relevant policies, investing in an ICT infrastructure conducive for data sharing through committing funding to making NRENs financially sustainable, incentivising open research practices by scientists, and creating opportunities for more scientists and stakeholders across all disciplines to be trained in data management.