BY LAKACHEW ATINAFU
The comprehensive evolution of the Ethiopian economy and reforms incepted few years before has been tempted and passed through challenges due to nationwide turmoil and some western powers that yearn to sustain poking nose politics in Africa.
Due to the influx of globalization and a more liberalized economy, Institutions are determined to produce skilled man power especially in the business arena to compete with the globalized and digital world.
Since the new administration assumed power, Ethiopia has altered its economic policy; refrain from state led economy which is an amalgam of the Orient countries and widen the scope of privatization.
The country has established Ethiopian Capital Market Authority (ECMA) which is responsible for the Prime Minister. In the last five years, there have been continuous efforts by the Ethiopian finance ministry in association with African market specialists to pave the way for its stock market.
For starters, Ethiopia needs to upgrade its internet and cell phone capabilities. It is a digital and tech-driven age, and Ethiopia needs to set foot in and ensure fast and accurate trading. Before Ethiopia launches its stock market, it must run informative campaigns to raise public awareness about the stock market. For instance, the stock market can help Ethiopia drive consistent economic growth.
Hence, in order to produce competent citizens, investing on man power is counter lucrative. The Addis Ababa University school of Commerce in collaboration with ESMA, the England based institutions has launched short term training in capital market and other related disciplines for business professionals.
The rationale for delivering the training aimed at building the better future at the business capacity and enable business professionals to be competent in all endeavors of business. The School is striving to deliver various programs individually and in group for trainees focusing on capital market.
Capital markets are financial markets that bring buyers and sellers together to trade stocks, bonds, currencies, and other financial assets. Capital markets include the stock market and the bond market. They help people with ideas become entrepreneurs and help small businesses grow into big companies.
The primary function of the capital market is to bring together investors who buy securities with those who sell them. The three main participants of the capital markets are savers (also known as investors), borrowers, and stockholders.
Capital market theory is a generic term for the analysis of securities. In terms of tradeoff between the returns sought by investors and the inherent risks involved, the capital market theory is a model that seeks to price assets, most commonly, shares.
These venues may include the stock market, the bond market, and the currency and foreign exchange (forex) markets. Most markets are concentrated in major financial centers such as Capital Structure refers to the proportion of money that is invested in a business. It has four components and it includes Addis Ababa University College of Commerce established in 1943 is the pioneer and leading business education and training in Ethiopia has earned its reputation due to its significant and long lasted and tested contributions in developing graduates who have made a difference in all areas of their business engagements. Thanks to the leadership of a renowned faculty, dedicated staff, talented and involved student body, and engaged group of alumni and supporters.
The success and expertise of Addis Ababa University College of Commerce, its programs and its people are mostly highlighted by the success of former graduates, employers and other stakeholders.
The school goals as an institution are straightforward: it provides students with an outstanding, competitive education and training; conduct pertinent research that can improve the quality of education and craning to equip graduates and enable them meet the needs for graduates equipped with practical skills and knowledge of employing organizations and their own future carriers through continued innovation programs and unparalleled commitment to business community.
These days for the fact of the fourth industrial revolution the need to upgrade ones skill and to stand on the track of competence is a must. Cognizant of these facts governmental and private institution put in place updated training for professionals and neediest. Apart from Addis Ababa university, private firms have given due concern for digitalization.
Coupled with the war, the desire to impose economic sanction and twisting hands thereby among western powers seemed to be concurrent challenges and a stab in the back for Ethiopia influential and populous country in the continent. The western powers are leaving no stone unturned to weaken Ethiopia economically, and the United States in particular, suspended Ethiopia from AGOA.
Hence, the time demands to foresee, and diversify opportunities to rescue the nose dive situation and save the nation at risk, claim a prominent scholar. Professor Birhanu Borje, Lecturer of Marketing Management and Researcher at Hawasa University had moments of togetherness with The Ethiopian Herald.
Upon the short stay, Prof. Birhanu said that Ethiopia is urged to foresee varieties of market opportunities to compensate prohibition of AGOA and need to shift its face to China and others strategic partners.
However, suspending the country from the opportunity doesn’t only impact upon employees and firms locally, is also violating the right of consumers in the USA, product preferences, the Professor added. Hence, prohibition of Ethiopia from the market creates shortage of supply and choice in the market of the United States as there is a great demand for Ethiopian products.
To fill such and such gaps, there is a need to launch inter-regional market and strong economic integration among Africans. And the country needs to foresee optional market opportunities in oriental countries, the Middle East and Asia Minor as such countries constitute most of the population of the world and likely to be potential destinations of Ethiopian Industrial products.
And it is not advisable for a country to relay on single oversea market for its product as there are ample opportunities as efforts are being made to explore optional markets in Africa. Most notably the county is expected to produce two folds and more to rescue its economy and help agriculture in the war torn areas faced hazardous consequence in the northern part of the country.
In doing so, lots could be assisted and rescued from further fatalities and there by rehabilitated in the aftermath. Birhanu further said that staggering amount of money is being looted as a result of illicit trade. Consequently, the government alone could not shoulder in enhancing the lives of many.
Thus, culminating the war at short time span is a great achievement. And the public in the relatively peaceful areas should be determined to produce surplus products for both domestic consumption and the need for foreign currency, he said. It is also a time to mobilize all human and material resources to compensate for the loss, rehabilitate the displaced and erect the economy in true foundation.
Moreover, at this very critical time where the mass are displaced, properties are destroyed, agriculture has not been practiced in some parts of the country, the public are advised to leave the comfort zone and the state must refrain from importing luxuries expects which consume the nation meager hard currency.
Ethiopia land of heterogeneity, independent for eras and later revealed to be the symbol of African independence after Italy had been defeated by patriots become center of attention for the humiliated white raciest. From then onwards there have been political and economic sabotage upon the country.
Meanwhile, some extremists and anti-Ethiopia elements continued to instigate conflict among the diverse nations in order to disrupt the nation economic endeavor. But their devilish ambition is still in vein.
As it had been demonstrated in the colonial era, efforts had been made to presumably to divide the country along ethnic and religious line and to strife terrorism but by withstanding the conspiracy all citizens are standing together and no force can detract their aspiration of development.
The Ethiopian Herald June 1/2023
