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Public shops in Addis Ababa could become consumer cooperatives, be reorganized on a merit based system or sold and the revenue used to make way for Kebele targeted businesses depending on the results of a study group tasked with preparing a draft regulation to resolve the fate of Kebele public shops and other related institutions, according to Shisema Gebreselassie, Trade and Industry Bureau Head at the Addis Ababa City Administration Trade and Industry Development Office (AATIDO).
He says the options are going to be discussed extensively with the hope of helping consumers and consumer associations.
Reorganizing consumer cooperatives is being looked at as an easier way for businesses to control their wealth, create competent management, and to oversee their activities.
Selecting better performing kebele public shops and other related institutions and transforming them into consumers’ cooperatives could be done if they have a work force of between 40-140 people, a capital amount ranging from one million to six million birr and four to seven job sectors.
Potentially selling the businesses is being considered because some kebele shops are poorly constructed, have limited capacity, or were formed without planning. In addition, an assessment report noted that some 63 percent of shops are being sub-contracted in rent form to third parties. As a result, a buyout could be the best option, selling the above mentioned institutions and using the revenue to construct institutions that are better suited to the needs of the kebele residents.
The AATIDO also revealed that in accordance with the trade practice reform it has been doing over the last ten months of the current Ethiopian Fiscal Year 2011/12, it has carried out several manpower assessments, hiring, as well as discussions with 40,000 business community members and 18,000 consumers.
The office stated that it has conducted around 192,924 license registration transactions; 123,433 renewals of trade licenses, 46,975 issuances of new trade licenses, while 16,543 businesspeople returned their trade licenses.
In terms of legal measures taken against alleged and convicted trade practice violators, charges have been issued against 59 individuals, 31 litigation charges are currently in the hands of the police, while 22 charge sheets have been dismissed by the prosecution on the grounds of lacking substantial evidence to file a charge; six others are awaiting a court decision.