Wednesday, May 27, 2026
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Thinking of starting a business, continued …

Two weeks back we looked into some hints and suggestions to include in a solid business plan. We saw that a business plan summarizes a project in a way that makes it understandable and attractive to potential financiers, business partners or employees. Keep in mind that the first review of a business plan is an elimination process, rather than a selection process. The challenge is to stimulate readers’ curiosity and allow them to read the plan easily. The plan should clearly identify the problem the business is going to address, not only the solution. A good understanding of a particular problem or need will lead to success. First confirm the need, then build the product. Show you understand the problem and your solution will be more convincing. Next, be focussed. Define the target market and provide a relevant description, with figures that show the size of the market. For readers to reach your conclusions, rather than their own, you need to guide them. It is not enough to describe facts as different readers may draw different conclusions. Show evidence of market acceptance, in particular with a new product or concept. Consumer behaviour is hard to predict. A common pitfall is to assume that customers will behave in the way you expect. Reality is different and common sense is the least accurate way to predict consumer behaviour.
Now describe the implementation approach. A good idea is unlikely to be unique. If it is good, expect a few other people to be thinking about it. If it’s really good, you may find others working on it already. The difference is in implementation. This is the real challenge. Even if the idea is not unique, you can make a difference in the way you carry it out. And that is what investors are looking for.
Be coherent with figures. There will never be accurate figures until the business is underway and even then, some pieces may be missing. It is always possible however to use comparisons, benchmarks, and reference points. Use them to estimate market size, market share and profit margins. Readers of your business plan will in the first instance not be able to double check the figures. They would rather look at the coherence of figures and check that they are consistent with the strategy.
Sometimes financiers provide a format for the business plan. If not, use an easy-to-read format. Remember that complicated documents are irritating and flat text with long paragraphs is boring. Think about the way people read a newspaper: they check the headlines first and focus on interesting stories. Readers of business plans are no different. Don’t use small type and don’t exceed 30 pages. If readers want more, they will ask. Remember that large files are also difficult to send by email, particularly in our situation in Ethiopia.
Use simple style, common vocabulary and avoid abbreviations. Describe the business in a way that makes it easy to understand. Describe the need to be addressed and the market opportunity. Then explain how this need will be met.
Draw the organization chart as it should be at maturity, not to fit the current team. Highlight the team’s capabilities and don’t hesitate to identify gaps, showing awareness of future trends.
It is a mistake not to include a thorough analysis of potential competition. If there is no competition, that is not necessary a positive point. In fact, it may be very negative because there could be no market for the idea. Once competition has been covered, show the differentiating points. Avoid statements saying that your business will be “better” or “cheaper” or “faster”.
Marketing and sales are strategic components of any business. Focus on how this will be done and remember that the marketing approach may provide competitive advantage.
The most important determinant for success is the ability to execute. Implementation is the real differentiator. This includes all aspects, from the choice of technology to customer service.
Always include a section analyzing the risks that may affect the business. An accurate assessment of risks will help convince investors that you are fully aware of the threats the business may face. It will also show that you are prepared and capable of responding to the challenge. This reminds us of the continued electricity problems we are facing for example. I have spoken to several business owners running different kinds of businesses and they are all seriously affected by it. Production time is reduced, production costs are rising, essential information and opportunities are missed, and a lot of business and money is lost. I wonder how many of us are prepared for such high infrastructural risks. Those who were and had earlier invested in alternative sources of energy are now at an advantage.
Going back to our business plan, don’t forget to state clearly what is expected from the target readers. The conclusion should include your funding request.
In conclusion:
Use the business plan as a communication tool.
Be simple, realistic and use common sense.
Don’t look for funding but for raising interest.
Be ready to support any statement with detailed information.

Reference: Financial Times – Mastering Management 2.0 – Joe Tabet and Albert Angehrn
Ton Haverkort
ton.haverkort@gmail.com

The US shouldn’t be surprised Latin America is turning to Russian news sources

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Washington keeps meddling in the affairs of ‘its hemisphere’ and deploying propaganda to paint its interventions as benevolent

In his 2005 Nobel Prize acceptance speech, Harold Pinter spent a good deal of his time detailing the crimes of the US in the world, but especially in Latin America. He spoke about how most people have been lulled into forgetting about these crimes, if they ever knew about them at all, thanks to Washington’s sophisticated propaganda machine:
“The United States supported and in many cases engendered every right wing military dictatorship in the world after the end of the Second World War. I refer to Indonesia, Greece, Uruguay, Brazil, Paraguay, Haiti, Turkey, the Philippines, Guatemala, El Salvador, and, of course, Chile. The horror the United States inflicted upon Chile in 1973 can never be purged and can never be forgiven.
Hundreds of thousands of deaths took place throughout these countries. Did they take place? And are they in all cases attributable to US foreign policy? The answer is yes they did take place and they are attributable to American foreign policy. But you wouldn’t know it.
It never happened. Nothing ever happened. Even while it was happening, it wasn’t happening. It didn’t matter. It was of no interest. The crimes of the United States have been systematic, constant, vicious, remorseless, but very few people have actually talked about them. You have to hand it to America. It has exercised a quite clinical manipulation of power worldwide while masquerading as a force for universal good. It’s a brilliant, even witty, highly successful act of hypnosis.”
Of course, the people who suffered from the relentless US attacks have not forgotten them. And as might be expected, these attacks have not stopped, or even slowed down, with the US supporting right-wing coups in Latin America and the Caribbean in recent years – for example, in Honduras in 2009; Bolivia in 2019; and most recently the ongoing unrest in Peru. The US also helped instigate a very violent coup attempt in Nicaragua in 2018, though it ultimately failed. Moreover, in addition to forcibly kidnapping Haitian President Jean-Bertrand Aristide and flying him to the Central African Republic in 2004, it appears that the US had some role in the recent murder of Haitian President Jovenel Moise.
Meanwhile, Washington is leading NATO’s expansion of its forward-operating capacity in Latin America and the Caribbean. According to Popular Resistance, at the end of 2022, the US had “12 military bases in Panama, 12 in Puerto Rico, 9 in Colombia, 8 in Peru, 3 in Honduras, 2 in Paraguay, as well as installations of this type in Aruba, Costa Rica, El Salvador, Cuba (Guantanamo), and Peru among other countries.” Washington is seeking to control the entire “land and maritime surface of the region”, including a network of NATO bases on islands in Argentina’s territorial waters “usurped by the United Kingdom.”
In light of all this activity and history, the people of Latin America and the Caribbean can be forgiven for doubting the claims that the US is helping to spread democracy, peace and truth in the region. The people of this region are simply tired of being bullied by the US, and they are equally tired of being blatantly lied to by the US government and its corporate media mouthpieces. As such, it should come as little surprise to anyone paying attention that the people of this region are increasingly looking to non-US sources like Russia’s RT to get their information, much to the chagrin of the US.
As CNN laments, “Russian propaganda has long exploited simmering resentments against the West’s imperialistic past and recent foreign policy interventions, now promoting the view that Ukraine is a puppet of the West. The narrative is particularly powerful in Latin America, where Kremlin-controlled media outlets such as RT have big audiences.” Similarly, POLITICO complains, “When it comes to Russian state media, the Kremlin’s Spanish-language services – most notably RT en Español – are a juggernaut, particularly in Latin America. Its glitzy television studios, anti-gringo editorial line and ability to tap into locals’ desire for outside news sources have made the outlet by far the largest proponent of Moscow’s talking points.”
There is much to unpack in these alarmist statements. First of all, in its very assertion about “Russian propaganda,” CNN itself engages in its own, quite typical pro-US propaganda, attempting to claim that the West’s imperialism is in the “past” and reducing its recent, anti-constitutional coups in Latin America to mere “foreign policy interventions.” For its part, POLITICO acknowledges that the appeal of RT to Latin American viewers is its “anti-gringoeditorial line” without explaining why Latin Americans would be attracted to that – that is, without acknowledging it is the cruel US actions which have driven Latin Americans away from American sources and towards those like RT.
Of course, the problem is that the US government and its compliant propaganda outlets like CNN and POLITICO have gotten high on their own supply. They believe their own line about the nature of US imperialism in the region and cannot seem to fathom that they themselves are some of the biggest purveyors of false news in the world, including about Washington’s role in the world.
Again, the people of Latin America and the Caribbean, forced to endure the brutality of the US in their daily lives, are not so fooled, and they are quite understandably looking elsewhere for their news, and even for help. Thus, people protesting US intervention in such countries as Haiti and Peru are even waving Russian flags and asking for Russian help against this intervention.
There is an easy solution to this. If the US wants the people of the region to look to it and its media outlets for news and information, it might be honest about its interventionist past and present conduct in this hemisphere, and it can start treating the people of this hemisphere and their countries with respect and as equals. As long as the US continues to treat Latin America and the Caribbean as its “backyard” in which it is free to meddle for its own gain, it will only continue to alienate the people and to push them towards Russia and other points eastward. This should be an obvious point, but it seems to be lost on those policymakers in the US who seem incapable of seeing past their own self-interest, all the while believing that they are somehow the good guys.

Daniel Kovalik teaches International Human Rights at the University of Pittsburgh School of Law, and is author of the recently-released book Nicaragua: A History of US Intervention & Resistance.

Youth for Peace Festival creates new opportunities for young men and women

The United States Agency for International Development (USAID)’s youth activity, Kefeta, celebrated a “Youth for Peace Festival” at the Mulualem Cultural Center in Bahir Dar. The festival was organized in collaboration with the Federal Ministry of Women and Social Affairs (MoWSA), regional bureaus in Bahir Dar, and the Bahir Dar City Administration.
More than two thousand young people from Bahir Dar, Dessie, Kombolcha, Debere Birhan, Jimma, Gambella, Harar, Dire Dawa, Jigjiga, Semera, Logia, and Assosa attended. They learned about youth-owned businesses and health and financial services; they participated in a peace forum with intergenerational dialogue; and they heard inspiring stories from young changemakers. Two talent shows and a concert, featuring local musicians, offered entertainment.
The “Youth for Peace Festival,” is part of USAID’s Kefeta activity, launched in March 2022, which is lifting up millions of youth across Ethiopia. The five-year initiative will help youth in 18 cities gain improved access to health, education, economic, and civic opportunities. The festival promoted intercultural understanding and created a platform for increased private sector engagement and civil society support for youth development. The mayor of Bahir Dar, H.E Dr. Dires Belay, officially opened the festival, alongside USAID/Ethiopia Deputy Mission Director Adam Schmidt. The mayor called for all actors to contribute to the social and economic development of the next generation.
At the end of April, Kefeta is planning a national youth festival in Addis Ababa. This will be a two-day event to host youth from all regions of the country at Millennium Hall. The festival’s goal is to inspire young people to contribute to positive change in their communities. Activities such as the Bahir Dar Festival will engage youth voices and empower the next generation to take part in Ethiopia’s resilience and peace-building processes.

ETHIOPIA’S CONFLICT ROOTS

Global statistics show that eight out of 10 of the world’s poorest countries are suffering, or have recently suffered, from large scale violent conflict.  The burden of wars is however more cumbersome in developing countries since an upsurge in conflict  tends to falls heavy on human, economic, and social costs leading to a major cause of poverty and underdevelopment.

In recent times, Ethiopia has had its fair share of struggles stemming from conflict. In order to best understand Ethiopia’s thorns, Capital’s Metasebia Teshome sat down with political scientist, Semir Yusuf (PhD) for insights on the dynamics of the country’s conflict genesis and recent violence upsurge.

Semir Yusuf holds a PhD in Political Science from the University of Toronto, Canada and is a Senior Researcher at the Institute for Security Studies in Addis Ababa where he heads the Ethiopia Project. He has published widely on conflict and peace, transition politics, authoritarian politics and Ethiopian studies. The following are excerpts from the candid interview;

 

Capital: There has been an upsurge of conflict across Ethiopia in different times after PM Abiy Ahmed came to power. What do you think has attributed to increase of conflict and violence in Ethiopia?

Semir Yusuf: I would like to emphasize that each and every conflict event in Ethiopia has its own specificities, and its own particular peculiar characteristics. This can stem from its local dynamics, its own history and so forth. I will not delve deeply into the specifics to trace the conflicts in Ethiopia; rather I would like to offer a very broad, generic explanations that equally cut across most conflicts that have risen in the country in the last four years.
The first on the list is identity-related contentions. And this is about nationalist and ethno nationalist mobilizations as well as ethno-religious movements that are informed by several demands such as territorial claims and counterclaims, autonomy questions, scramble over control of regional states, and others. They’re also influenced by economic issues, but they involve identity in one way or another.
The second is elite competition. Elites are quite important in mobilizing people for a nationalist cause. But elites are important for another reason as well. They have their own material interests, that is, power and economic interests. So competition among elites should be treated on its own terms, in addition to nationalist dynamics.
Thirdly, the institutional pattern is quite important. And here, party institutions and state institutions play a very important role in fueling tension across the country.
Last but not least, of course, the international aspect of conflicts is very important, ranging from smuggling of arms across borders to more direct involvement in internal affairs in different ways.

Capital: How do these factors correlate to propel the issue?

Semir Yusuf: Political institutions, combined with other factors, contribute to the making of contending nationalisms while contending nationalisms in turn accelerate institutional fragility and elite’s rivalry., The confluence of contending nationalisms, institutional fragility and elite rivalry leads to the eruption and development of violence in Ethiopia.
On the other hand, with the amplification of contending nationalisms come more enhanced institutional fragility and elite rivalry, while more intense elite rivalry and state weakness intersect with contentious nationalist mobilizations.

So this dynamic cycle is what I believe keeps on producing violence and conflict in Ethiopia. And policy recommendations should be anchored on breaking this dynamic in order to transcend the cycle of violence in Ethiopia.

Let’s start with the identity-related contentious and how political institutions contributed to their intensification. It is virtually impossible to understand nationalist contentious Ethiopia without going back into recent history. Both pre and post 1991 periods are central to understanding contentious nationalist mobilizations in Ethiopia.
Before 1991, during the Imperial regime and the military reign, we used to have an authoritarian unitary state but most importantly we used to have nation-building regimes aspiring to create a more homogenous collective identity for Ethiopians.
Now these internal institutional drives coincided with a very important international environment, informed by the Marxist movements of the 60s and the 70s, and the decolonization movements in Africa. The confluence of internal and international processes produced a politically consequential perception inside Ethiopia.
That perception went on becoming predominantly visible among southern elites in the country that felt the nation building policies of Ethiopian governments were actually nation-destroying schemes.
I’m borrowing here from Walker Connor, a famous political scientist, who argued notably that nation-building for one is nation-destroying for another. So the nation-building policies and arms of Ethiopian governments were seen by some elites in the southern part of Ethiopia as attempts at destroying their nations. And that led to counter-movements and anti-state struggles. Thus, you would see the establishment of political and insurgent organizations, leading to a heightened level of popular mobilizations challenging the state. The struggle with the state went on until 1991, when a coalition of ethno-nationalist forces captured state power.
Now, the immediate effect of that is the abandonment by the state of its nation building aspirations and its replacement by what the EPRDF called the multinational project, the most important manifestation of which was the multinational federation or the ethnic federation that was put in place after 1995.
Ethiopia’s multinational federation, however, was beset with several contradictions. On one hand, we had the construction of regional states which came up with their own local politics and their own constitutions, national anthem and so forth. But on the other hand, we also had a hierarchically organized centralized party structure that contradicted the very idea of a federal structure. So that structural contradiction then contributed to a psychological contradiction as well. And the psychological contradiction was that some marginalized groups in Ethiopia felt empowered as a result of the multinational federal project, because they had been marginalized by the Ethiopian state.
But on the other hand, some other ethnic groups such as the so-called settlers in different regions were constantly harassed and subjected to violence and therefore got disempowered. Hence, the praxis of the federal project both empowered and disempowered ethnic groups in the country.
These and other manifestations of the multinational project went on producing simmering nationalist faultlines, producing three conflict types during the EPRDF’s period, which are very important to understand today’s politico-security dynamics. One was this perennial struggle between ethno-nationalists and Ethiopian nationalists. The second was the anti-regime struggles, including legal party opposition, insurgent movements and protest movements.
The third was the conflict of different types between and among ethno nationalists themselves along several lines, including land claims and counter claims and grazing lands, scramble over control of regional states and other reasons. In the midst of all these conflicts, however, there was a facade of stability in the country because of the hierarchically organized state system, and the deployment of coercion by the state. This started to change after 2011. And more so after 2015, when protest movements, engulfed Ethiopia in Addis Ababa in Amhara and in Oromia regions.
And those protest movements triggered an internal struggle within the EPRDF, leading to the emergence of a coalition that marginalized the TPLF, the core element within the EPRDF. And this emerging coalition ushered in a series of political reform processes in the country.
The problem, however, was that with the onset of political liberalization, you would also see the bursting forth of all oppressed, suppressed simmering nationalist contentions in the country. So in order to understand today’s political violence and conflict, we have to really understand all the simmering tensions, suppressed contentions, nationalist and inter-nationalist struggles that were, you know, controlled by autocratic leadership. With the liberalization of the autocratic lid, all those simmering tensions busted out and escalated into active confrontations which then spurred violence.
So you would see the consolidation in post-2018 of several variants of nationalisms; Amhara nationalism, Oromo nationalism, Tigray nationalism, Kimant, Somali, Gumuz etc nationalisms, informing popular mobilizations and sometimes in contentious ways. These contentious nationalists dynamics, with very important historical roots in recent history, have contributed to the rise and surge of violence in Ethiopia after 2018.

Capital: How would you best define the elite competition in the country?

Semir Yusuf: Just like nationalist contention, elite competition has a long history in Ethiopia and it takes a particular pattern. It goes like this: we have a political opening, like the one we had in 1974, in 1991, or in 2018, producing public euphoria. People are very happy about the political rupture. And then that’s immediately led by the striking of alliance among key political elites in the country which consolidates the ongoing euphoria.
But that alliance is short-lived. It gets disrupted, triggering a power struggle between several political actors in the country. And then you would see the consolidation of power in the hands of very few elites or one particular person that turns out to be the new power holder in the country. The process of competition, struggle and consolidation paves the way for the production of conflicts in the country. This pattern is very important to understand violence and conflict in post-2018 Ethiopia as well. I’ll give you one example here, how inter-elite rivalry unfolded in Oromia. Going back to 2018, in Oromia, Prime Minister Abiy promised both democracy and peace, of course in the entire country but specifically in Oromia. He travelled to the US and met several Oromo elites, and then we see the striking of a very important alliance among the Prime Minister, Jawar Mohamed, the noted political activist at the time and Lemma Megersa, a central figure in official Oromo politics and once the president of Oromia Regional State.
That alliance gave hope to the many in the country and specifically for those in Oromia, that things are going quite well in this country, and the transition process is holding. And there is also a very short-lived alliance between the EPRDF under Prime Minister Abiy Ahmed and Oromia Liberation front /OLF/ as well, although the nature of that agreement still is shrouded in mystery.
But then you would immediately see the disruption of these and other alliances in the country. It all started with a disruption of the alliance between OLF and the federal government towards the end of 2018, punctuated by a number of disagreements that started to surface gradually. That was followed by a split within the OLF itself between the Oromo Liberation Army /OLA/, and some elements in OLF.
And then, quite consequentially, came the disruption of alliance between the Prime Minister and key Kero leaders including Jawar.
And then there was also a split within the ODP/Prosperity Party itself, between Prime Minister Abiy and Lemma Megersa., There was an attempt to resurrect the alliance system but it didn’t pan out.
By 2020 we see a united front against the PP. However, after 2020, disruption or weakening of the alliance within the opposition movements in Oromia unfolded. This was followed by power consolidation efforts in the hands of Prosperity Party leadership, and that went through two phases, that is, the informal and formal phases. The informal phase included the creation of the Prosperity Party, repression against opponents, expulsion from state organs of recalcitrant elites as well as cooption of key Kero leaders into the party/state structure.  In the formal phase, the power consolidation efforts were legitimized through the 2021 elections.
The key point here is that in the process of power competition and power consolidation among and by elites, conflicts erupted widely across Oromia.

Capital: How is violence spurred institutionally?

Semir Yusuf: The third very important propagator of violence is the institutions. The question here is this: if nationalist and inter-elite contentions are important to understand violence, then why hasn’t the state been able to prevent conflicts effectively and immediately in many instances? Of course the state has made some successful efforts to prevent conflict but it has failed in many others as well.
What explains this failure? There are three very important elements within the party and state structure to properly answer this.
One is division within the ruling party that has been ongoing; of course, it was quite amplified towards the beginning of the political transition. The division contributed to conflicts in two ways. One, it was really difficult for the party to chart a collective vision for managing and transforming conflicts in the country. And two, the party institutions were actually used as an instrument to reproduce societal divisions into the state structures.
The party instead of serving as an instrument to transcend conflict actually served as a mechanism whereby societal divisions are reproduced into the state system. And two, state forces have also been accused of inaction in the face of impending violence, mainly because of the weakening of the coercive apparatus.
And finally, one of the glaring ironies of post 2018 Ethiopia was the coexistence of state inaction and state over-action at the same time.
We sometimes have an inactive state in some places, and an overactive one in others, accused of deploying force disproportionately, and that fueling grievances at a later stage, and thereby maintaining the cycle of violence in the country.

Capital: What have you observed from the Tigray war?

Semir Yusuf: The Tigray war, I believe could be properly analyzed using the same framework that I have outlined so far. For instance, the nationalist scene is quite important, i.e., a heightened level of mobilization among Ethiopian nationalists versus Tigrayian nationalists, one counterpoised against the other.
Similarly for the case of elite competition, Tigray War was not just about nationalist reasons. It was a lot as well about elite rivalry between rising elites and losing elites. And this was about power struggle, as much as it was about disagreements over how to interpret the 27 year rule of EPRDF and how best to understand the origins of the political reform.  Clashing economic interests also pervade the elite dimension.
Similarly, institutional dynamics is also quite important.  State weakness is very important in this regard. The very eruption of the Tigray War typifies the emergence of two social orders in Ethiopia, two social orders with their own legal, economic, military and political systems typifies state weakness. In addition, state fragility has also contributed to the emergence of the Tigray war in the sense that the lack of a proper projection of power by the state/the federal government across its territories triggered the mushrooming of several challengers to its legitimacy. Similarly, state repression in different parts of Ethiopia, for example, in Tigray contributed to the consolidation of the Tigrayian nationalism which then really turned the civil war into a very tense and enduring conflict.
Of course, we can’t talk about the Tigray war without mentioning the international dimension. This is not just about the role of Eritrea but also the fact that Ethiopia was thrown into the global power play and how that power play also came into Ethiopia and contributed to the intensification and durability of the civil war in the country.
Some of the conflicts have subsided as we speak such as the Tigray war, and efforts are underway to tackle some others but I would like to emphasize the root causes of violence in Ethiopia have not yet been addressed very well.
The structural and agency related roots of conflict in this country have yet to be addressed and tackled effectively. Those four dynamics are quite important; the nationalist, the elite, the institutional and international dimensions are central to our understanding of violence and conflict in the country.

Capital: Currently the government has planned certain mechanisms to combat conflicts, including creating the National Dialogue platform. What’s your view on this?

Semir Yusuf: On the one hand there are several post conflict mechanisms to consolidate any peace we have gained so far and on the other we still need to dwell in conflict resolution processes where we have active conflicts. So, we have to consider both mechanisms. In post conflict times to sustain peace and tackle upcoming conflicts, lots of work is needed and one of these is national dialogue which is integral to transforming conflicts in a country. National dialogue does not mean that we will reach full agreement in all aspects. Of course, arguments, debates and controversies will continue but the aim is to prevent them from descending into violence and manage them through legal and peaceful processes.
Transitional justice is another possibility. Transitional justice is informed by a society’s desire to heal deeply-held grievances, rebuild social trust, reestablish what is right from what is wrong, and repair a fractured justice system in post-war countries. So we need to apply it in a well-thought out and well-organized manner to get sustainable peace.
The other issue is political reform, which we need to rejuvenate to overcome authoritarian tendencies which complicate our security dynamics.

Where conflicts are still rife, additional set of mechanisms beginning from peace negotiations should be applied.