No doubt that the private sector has vital role in the overall economic growth of the nation. And it has been relating that the government has been providing various assistances in different times recognizing its role. However, government didn’t exert appropriate effort in providing sufficient assistances and creating conducive condition that enable the private sector play its role, said professionals and partakers of the sector.
Adding, they have commented on impediments of the private sector and measures needed to be taken. As to Dr. Atlaw Alemu, head and instructor of economic department, Addis Ababa University, investors do not look at other party for decision as they know that the profit or the loss relies on their own effort. On the contrary, government workers are under the command of their employer and cannot make decision by themselves so that they lack efficiency and fruitfulness.
The gap regarding process among the private and the governmentis wide. Thus, the private sector takes upper hand in the nation’s economic growth. Sectors to be carried out by government are well known, so the rest majority could be handled by private sector. Though there is immense job for the private sector, it is hard to admit they contributed their expected share in the economy due to government’s absence of willingness in creating fair competition platform.
The support claimed by government given to the sector is restricted to its own and investors those have close attachment with the government. Unsatisfactory services like licensing, taxation and others limited the private sector to mini commerce instead of engaging to industry that creates massive job opportunity for citizens, as to Dr. Atlaw.
If government had provided the needed assistance and encouragement, asto him, it rescues itself from blame and the private sector could create job for citizens, stabilize market and play vital role in the social and economy as a whole. In other parts of the world government’s role is merely supportive.
Boost and effectiveness of high capitalists in these countries then, because of favorable conditions created and encouragements their nations provided, he explained. Blue Moon Youth Incubator, CEO, Dr. Eleni Zewdie, on her part said: “It is solid fact that an investor engages in a sector that solves visible problem in a given country and benefits the country expecting the reward. But in the Ethiopian context, this is not real.
And this is one problem. The other is the investor is perceived as self-centered and observed suspiciously. Because of this exaggerated suspect, it fails in gaining trust among others though become successful with genuine effort. Excessive inspection and follow up put the investor to work under threat.” This damaging attitude, as to Dr. Eleni, discourages the investor to hold back from the sector instead of benefiting the country. On the contrary, authentic and required inspection distinguishes between honest (become effective by own effort) and corrupted or dependent investors.
The pressure imposed on investors in Ethiopia cannot be seen even in neighboring countries like Kenya. As of Dr. Eleni, the experience of other countries show that government is not wealth creator, do not build a nation alone, rather, participates the private sector from small scale job creator to the highest investor. The investor is equally respected with a physician and an engineer though the esteem and the support are not fully applied yet in Ethiopia. Dr. Eleni underscored that her institution is contributing its share in the economy. As to her, the institution provides training for highly talented youths, grants initial capital and linkage with companies.
“Private sector is the engine for the economy with its great role in creating job opportunity, paying revenue and earning foreign currency,” said Ato Kiburgena Desta, head, Pan African Trade Council. The private sector can carry out this role when the government accomplishes its role of providing infrastructure and facilitating incentives like taxation. The double digit growth has been registering in Ethiopia, as of Ato Kiburgena, never come up with the only effort of government but the private sector has also injected its share. In order to augment role of private sector in the nation’s economic growth, the process must be examined.
While talking about economic growth; all sectors rather than leather and coffee; must be observed including the transport sector, he noted. The currently operating Ethiopian Air Lines has to be doubled or more. More effort must be exerted to encouraging inland investors than foreign one that negotiates on its advantage in terms of tax.
His institution is working on widening free trade zone to export products to African countries, he stressed. Regardless of all these critics, great effort has been exerting in Ethiopia aiming at creating job especially for the youth. Youths in Addis Ababa have been engaging themselves in various selfemployed jobs avoiding bad habit of choosing among carriers.
For instance, Tilahun Abdeta and four other youths, in Kolfe Keranio sub city, have begun their own decor workwith 250,000birr loan gained from Addis Loan and Saving Enterprise. Tilahun witnessed that their income has shown improvement within only eight months. Adding to expressing the change; “On top of securing our daily bread and butter, we are able to accumulate wealth amounted 400,000 Birr by paying back the loan and even create job for three people. Previously, we used to rent décor materials but at the moment, we purchased our own materials,” he said.
Among the enterprises bring about change in the ten sub cities of Addis Ababa is Askual animals’ food processing in Gullelle sub city. This enterprise of five members has begun providing improved livestock and chicken food with the initial capital of 50,000 birr.It has created job for 16 other people, as to Dereje Habtamu, member and head,enterprise’s trade department.
The enterprise paid back 400,000 birr loan lent from Addis Loan and Saving Enterprise in one year. This indicates that others too can gain lesson from Askual enterprise people those start business with interest,no doubt will become fruitful. The enterprise won best performance award on the competition held among micro and small enterprises in Gonder town in 2017.
Federal Urban Job Creation and Food Security Agency has planned to create 8.4 million jobs in the second Growth and Transformation Plan in government’s regular and mega projects and working on it. Within 18 months the GTP period, the agency created 5,163,926 jobs in all regions including Addis Ababa as to Ato Assefa Ferede, communication director of the agency.
Regular and mega projects that the job opportunity targets are classified into five sectors as of Ato Assefa such as; manufacturing, urban farming, construction, trade and service. Jobs have been created for 325,139 citizens in the six months of current budget year. Agency’s support to the newly organized associations or enterprises include: providing 80% initial capital, market linkage, display or manufacturing shades among others. Major challenge that is head ache to the agency is collecting back the loan in time though they are working on it, noted Ato Aseffa.
Herald February 12/2019
BY BACHA ZEWDIE
