I retired from full time employment just over a year ago. I made up my mind to retire long before that though, so the last few years, I spent time to think about how best to hand over the work I used to do, managing and representing an international organization. This is quite a challenging question as it seems rather normal for humans to hang on to a position of power as long as possible and not spend time and energy to prepare for an effective exit. Looking for answers I stumbled upon an article by Andrew Blackman and below I quote his suggestions as to what to consider when planning for an exit:
“You’ll find plenty of advice on building a successful business, but people don’t talk so much about how to leave it behind. And yet there are many good reasons for wanting to exit a business. Maybe you’ve found a better opportunity elsewhere and want to start a new venture. Maybe you want to retire or scale back. Maybe your business has just run its course, and you don’t have the passion for it anymore. Maybe you need to raise cash quickly, and selling your business is the only way. Even if you don’t plan to leave any time soon, it’s worth thinking through your exit options and having a strategy in place. Each one has its own particular advantages and disadvantages:
1. Pass It On
The natural transition for many family businesses is simply to pass ownership on to the next generation. In reality, however, it’s often not quite so simple. Here are some things to be aware of.
Advantages
When you pass your business on to a family member, the main advantage is continuity. No outsiders need to be involved: you can pass on your business to someone you trust, and see it stay in the family for another generation. It’s also a great way to provide for your children’s future, if running the family business is something that interests them.
Also, it can be relatively simple to complete the transition if everyone is in agreement. You don’t have to go in search of external buyers, negotiate a sale, and endure a complex due diligence process. It can be a smooth transition with minimal impact on the running of the business.
Disadvantages
Unfortunately, not all transitions to the next generation go so smoothly. Sometimes your son or daughter may have different ideas about how to run the business, or there can be conflict between siblings over who has control.
In extreme cases, families can be torn apart by disputes over the direction of the business. Also consider the tax implications. If you transfer ownership of the company either for no payment or for less than its market value, the tax authorities may view it as a gift and charge gift tax.
Tips for Success
Know your family, and make a decision, based on what’s right for the business. Management consultants Ernst & Young recommend taking on external advisors to get a more objective view, as well as creating a formal succession plan to ensure that expectations are set clearly on all sides.
Also ensure that you’ve passed on all the necessary skills and training to your successor and consider creating a “roundtable” or family board to ensure that major decisions are made fairly, with involvement of all family members, and that any potential conflict is quickly defused.
2. Management or Employee Buyout
If passing your business on to a family member is not an option, consider another “friendly buyer” like your existing managers or a group of employees. They can pool their funds and buy the business from you.
Advantages
A management or employee buyout is also great for continuity. These are people who know exactly how your business is run and have the skills to continue running it successfully. They may pursue a slightly different strategy, but it’s still likely to be a smooth transition. It’s also satisfying: business owners often worry about what will happen to their long-term employees when they leave, and what better way to know they’re well taken care of than for them to be the new owners?
Disadvantages
For your employees to buy you out, they must get the money together first. This can be a problem, especially with larger, high-value businesses. In some cases, the group of managers or employees will need to take out a large loan to fund the purchase, which can be difficult to arrange.
One solution is for them to pay you gradually over time out of the company’s profits, but this is an obvious disadvantage for you as a seller, both because there’s a delay in receiving the money, and because there’s a risk that the company will struggle, and they won’t be able to pay you the full amount.
Tips for Success
As with option one, the main danger here is in letting personal relationships cloud your judgment. Negotiating a price can be difficult with people you know well, and you may end up leaving money on the table. So, try to keep things strictly business, and bring in outsiders to value the business and draw up a fair agreement. When the deal is completed, resist the urge to stay involved, unless you’re asked to of course. Generally, it’s better to step away and let the new owners run things in their own way.
3. Trade Sale
This option involves selling to another company—perhaps one of your competitors, or a larger firm looking to acquire a subsidiary in your industry.
The 69th UN Commission on the Status of Women (UNCSW) convenes in New York from March 10 to 21, 2025. This annual gathering of governments at the UN reviews progress made on the Beijing Declaration and other relevant commitments aimed at advancing gender equality and empowering women globally. This year’s event marks the 30th anniversary of the landmark Beijing Declaration for Action. However, the 69th UNCSW is overshadowed by recent significant budget reductions in official development assistance from the US government and various European nations against a backdrop of pressing challenges we face today, including poverty, gender inequality, universal healthcare, universal education, and support for humanitarian needs arising from natural and man-made disasters. What is even more concerning is that these decisions are abrupt, leaving no time to prepare for the reduced assistance for essential humanitarian and development needs. Adolescent and youth sexual reproductive health and rights, along with investment in gender equality, are at risk. According to the World Economic Forum report, at the current pace, it will take 134 years to achieve gender equality. With the funding cuts in place, the progress we have made in reducing poverty, improving access to youth-friendly health services, and combating HIV/AIDS is likely to reverse unless alternative mechanisms are introduced to finance development. The SDGs are, by and large, far from their targets, even though we have only five years remaining. Developing countries, UN institutions, academics engaged in research and development, and local and international civil society organizations are all significantly affected.
Middle and low-income countries receiving ODA will now be heavily affected. Funding cuts mean fewer women will have access to family planning, leading to increased maternal mortality, a key priority that the SDGs aim to reduce significantly. Additionally, women will have fewer choices of modern contraceptives, which hampers their human rights, the essence of multilateralism.
Governments in the global south need to call for urgent action on this devastating trend, which is being witnessed in Europe and the US. Here are some of the key issues that require attention.
Debt distress
Sources from the IMF, World Bank, and African Development Bank indicate that most developing countries are significantly hindered by debt distress. Many heavily indebted nations allocate 20-30% of their annual budgets to service their debt. The debt-to-GDP ratio in some Sub-Saharan African countries is notably high, with Zambia and Mozambique exceeding 100%, Angola at 90%, Ghana at 80%, and Kenya at 70%. Ethiopia, Democratic Republic of Congo, and Chad are 50-60%. In 2022, Ghana sought assistance from the IMF to address its debt crisis. Zambia defaulted on its debt in 2020 and is currently undergoing debt restructuring. In 2021, Ethiopia sought debt relief under the G20 Common Framework.
Some countries, like Pakistan, allocate 50% of their GDP to debt interest payments. This, in turn, places pressure on public finances and restricts spending on essential services such as health, education, and infrastructure. Achieving the SDGs-targeted plans will be at risk.
Therefore, a mechanism must be established to revisit the previously successful Heavily Indebted Poor Countries (HIPC) initiative and the recently launched Debt Service Suspension Initiative (DSSI), introduced in 2020, which aimed to assist countries in addressing the economic impacts of COVID-19 by suspending debt service payments. Additionally, robust mechanisms need to be implemented.
Revisiting International Accords
Official development assistance is crucial for promoting development and alleviating poverty worldwide by providing essential resources to low- and middle-income countries. Many of these resources are geared towards sub-Saharan African nations. Organizations such as the Organization for Economic Cooperation and Development (OECD) are responsible for establishing standards for ODA, including definitions, reporting, and monitoring. The Paris Declaration on Aid Effectiveness (2005) outlines key principles of ODA, including ensuring country ownership, aligning with national development priorities, harmonizing efforts to minimize duplication, focusing on results, and promoting mutual accountability, among others. The commitments made at the G7 and G20 groups over the years need to be revisited considering current developments, with industrial countries providing ODA facing a reduction in aid and selecting sectors in which they would prefer to invest. How will this align with a previous agreement to align their support with country priorities?
The global south needs to take a firm stand on this, particularly in owning their development and setting priorities based on the realities of their countries. Donor countries must be encouraged to respect this, as it was previously introduced in a rigorous process, allowing them to avoid reinventing the wheel.
Long Term Prospects
The countries of the Global South, particularly those in Sub-Saharan Africa, need to begin discussing new approaches to development and prepare for rapid progress. We are in an era that requires unlearning and relearning to ensure that the hard-won development gains of recent decades do not regress. At the African Union level and within the Regional Economic Communities, effective strategies are in place, including the newly introduced promising African Continental Free Trade Area (AfCFTA). If implemented as planned, with the renewed commitment of member states at the African Union level, it has the potential to transform the economies of countries by creating access to large markets in the region and providing incentives for investors to engage in various sectors, benefiting from economies of scale through large-scale production. Coupled with the growing population in the African region and its median age of 19, it will undoubtedly become the world’s next manufacturing, fashion, and entertainment hub.
The newly appointed AU chairperson and the respective commissioners have these key responsibilities on their shoulders.
Ephrem Berhanu is an economist, currently serving as the Managing Director of TaYA in Ethiopia. You can reach the writer via email at ephrember@gmail.com.
In many countries, governments rely heavily on taxation as a primary source of revenue to fund public services and infrastructure. However, there is a delicate balance between taxation and economic growth. Excessive taxation and restrictive regulatory environments can stifle business development, leading to reduced investments, layoffs, and ultimately, lower tax revenues. This paradox, where governments seek to increase revenue by imposing high taxes but simultaneously hinder the very businesses that generate taxable income, is a challenge that policymakers must address with care.
Taxation is an essential component of any economy, but excessive taxation can have detrimental effects on businesses. High corporate taxes, complicated compliance requirements, and burdensome regulatory frameworks can make it difficult for businesses to operate efficiently. Some of the negative effects include:
High taxes discourage both local and foreign investors from injecting capital into the economy. When businesses anticipate lower profits due to high taxation, they may relocate to countries with more favorable tax policies.
Small and medium-sized enterprises (SMEs) are particularly vulnerable to high taxes. Many SMEs operate on thin profit margins, and excessive tax burdens can push them out of business, leading to job losses and economic stagnation.
When businesses perceive taxes as excessive or unfair, they may seek ways to avoid them, either by shifting operations to the informal sector or engaging in outright tax evasion. This not only reduces government revenue but also creates an uneven playing field for compliant businesses.
Governments face a difficult challenge. They need tax revenue to fund essential services such as education, healthcare, and infrastructure, but they must also create a conducive environment for businesses to thrive. Striking this balance requires a strategic approach to taxation.
Instead of imposing blanket high taxes, governments can implement progressive tax systems that ensure that larger, more profitable businesses contribute proportionally while providing tax relief or incentives to SMEs. Bureaucratic red tape can be as harmful as high tax rates. Simplifying tax codes and making compliance easier for businesses can enhance tax collection without suffocating businesses.
Instead of focusing on higher tax rates, governments should foster business growth, leading to a larger taxable base. Economic policies that encourage entrepreneurship, innovation, and job creation can ultimately lead to higher tax revenues without overburdening individual businesses.
Several countries provide clear examples of how over-taxation has hindered economic growth. France’s High Tax Burden: France has historically imposed high taxes on businesses, leading to capital flight and reduced investment. Many companies have relocated headquarters to tax-friendly nations, causing the government to reconsider its tax policies.
Singapore’s Business-Friendly Model: Singapore, on the other hand, has one of the most competitive tax regimes in the world. By keeping corporate taxes low and providing incentives for business growth, Singapore has successfully attracted multinational corporations and sustained economic growth while maintaining healthy tax revenue streams.
To conclude, taxation is necessary for economic and social development, but excessive taxation can be counterproductive. Governments must avoid policies that kill businesses while attempting to increase revenue. A balanced approach, where taxation is fair, compliance is simple, and economic growth is encouraged, can ensure a sustainable tax system that benefits both the government and businesses. By fostering an environment where businesses can thrive, governments can ultimately collect more tax revenue without stifling economic progress.
Yohanna Reta is a dynamic leader driving transformative change across education, culture, and global development. As the founder of Golden Stars College and Golden Bridge Training and Consultancy, a higher education investor, and Global Ambassador of the African Heritage Center in Ontario, Canada, she empowers individuals and communities. Her work spans forging international university partnerships, advocating for Pan-Africanism, and championing women’s leadership, making her a powerful force for African prosperity.
Capital: Why should you think international organizations and investors focus on Africa’s youth and education?
Yohanna Reta:-Africa’s greatest asset is its people. It is the hands and minds of our youth that will build the future of our continent. We are blessed with vast untapped land, a favorable climate, and a strategic geographic location that makes Africa an attractive destination for investment. However, to fully harness these advantages, we must prioritize education, skills training, and youth empowerment.
With over 60% of Africa’s population under 30, our human capital is the most valuable resource—far greater than minerals or oil in the coming years. By investing in education and creating opportunities, we are not just transforming Africa; we are shaping a globally competitive generation that will drive innovation, entrepreneurship, and sustainable development.
For Africa to thrive, we must also ensure peace and security, creating a stable environment where talent can flourish and investments can grow. The future of Africa is the future of the world. Let’s invest in it, nurture it, and build a legacy of prosperity.
Capital: What inspired you to invest in higher education, and how do you see it as a tool for transformation in Africa?
Yohanna: As I mentioned earlier, I experienced firsthand the limitations of charity. While it can provide temporary relief, it doesn’t create lasting change. I realized that true transformation comes through education it empowers individuals, fosters critical thinking, and equips people with the skills needed to break cycles of poverty and drive innovation.
Growing up in Ethiopia, I saw the struggles of marginalized communities, particularly women, who lacked access to quality education. I knew I had to be part of the solution by creating opportunities for those who wouldn’t otherwise have access to learning. Higher education is not just about acquiring knowledge; it’s about shaping critical thinkers, innovators, and problem-solvers who will propel Africa forward.
That’s why I chose to invest in education. Through Golden Stars College, we are not just teaching we are building future leaders, entrepreneurs, and changemakers who will transform Africa and compete on a global stage. Education, combined with technology andinnovation, is the key to unlocking Africa’s full potential.
Capital: Why are global education partnerships essential for Africa?
Yohanna: Africa has enormous potential in terms of talent, especially among its youth. However, many educational systems in Africa are still developing and face challenges in providing quality education. Through international partnerships, African students and educators can access world-class education, technology, and global networks. These collaborations bring African innovation and excellence to the world, allowing us to close the gap and ensure our students are equipped compete internationally. They also create opportunities for student exchanges, faculty training, and research that directly contribute to Africa’s development. Our institution successfully signed a partnership MOU with five American and two Canadian universities, opening doors for collaboration on a global scale. This includes the opportunity to be a member of the Global Community and Consortium for Global Education in both the USA. We are also working closely with the Canadian Embassy in Addis Ababa to further strengthen these partnerships and enhance educational opportunities for our students.
Many foreign higher education institutions aim to recruit international students from Africa. However, these students often face challenges such as visa restrictions and high tuition costs. Additionally, many do not return to their home countries, limiting their contribution to local development. This is not a sustainable solution. Instead, we invite foreign universities to partner with local institutions to bring quality, internationalized education to Africa, ensuring greater accessibility and long-term impact.
Capital: You are also deeply involved in cultural advocacy and Pan-Africanism. How does this connect to your work in education?
Yohanna: Education is not just about academics; it’s about identity. Africa has a rich history, culture, and intellectual legacy that the world must recognize. Through my work as the Global Ambassador of the African Heritage Center in Ontario Canada and my role as a columnist for Sable and Gold, I advocate for cultural, heritage preservation and African and African decent unity.
I believe that when Africans and African decent embrace their identity and history, they develop confidence, resilience, and pride in their heritage. Education must go beyond textbooks it must inspire a sense of belonging, purpose, and global citizenship while strengthening our Pan-African roots. We must build institutions that teach our true history, cultivate innovation, and equip our youth with the skills to lead Africa into a prosperous future.
Capital: What challenges did you face as a business owner, entrepreneur, and leader in Ethiopia, and how did you overcome them?
Yohanna: As a business owner, entrepreneur, and leader in Ethiopia, I have encountered several challenges, many of which stem from societal and cultural norms, financial constraints, discrimination, and the balance between family and work responsibilities. These obstacles have been difficult, but they have also shaped my resilience and reinforced my commitment to making a lasting impact.
One of the biggest challenges is societal and cultural norms that often underestimate the potential of women in leadership and business. In Ethiopia, leadership is traditionally seen as a male role, and women are expected to focus on family. I faced doubts and skepticism when I founded Golden Stars College, as many questioned whether a woman could lead such an institution. I overcame this by focusing on results, providing quality education, and building strategic partnerships, proving that leadership is about vision and impact, not gender.
Financial constraints have also been a significant hurdle. Access to funding for women-led businesses is limited, and financial institutions are often hesitant to invest in women entrepreneurs due to biases or a lack of collateral. In the early stages of my business, I had to self-fund, reinvesting every bit of profit to sustain growth. Even now, securing the financial resources needed to fully implement my vision is still a challenge.
Additionally, lack of professional networks has been a barrier. Many business networks in Ethiopia are male-dominated, making it harder for women to break in. To address this, I created Golden Bridge Training and Consultancy, a platform that connects professionals, entrepreneurs, and women, helping to build networks and create new opportunities.
Family responsibilities also present a challenge, as women are often expected to manage both work and home life. Balancing these roles requires excellent time management and support from others. I had to delegate effectively and set boundaries to ensure that I could fulfill both my career and family responsibilities without compromising either.
Despite these challenges, I see every obstacle as an opportunity forgrowth. My journey has taught me that resilience, innovation, and a clear sense of purpose are crucial to overcoming adversity. By staying focused on my mission, I am committed to breaking down barriers for women and entrepreneurs, not only in Ethiopia but across Africa
Capital: How did your diverse career path lead you here, and how do you manage it all?”
Yohanna: My journey is one of resilience, vision, purpose, and humanity. I was born and raised in Bishoftu, Ethiopia, East Africa, in a family where discipline, integrity, and service were deeply valued. My father, a military officer, sacrificed his life for his country, and my mother, with unwavering strength, raised me to believe that obstacles are simply opportunities for growth.
When you look at my upbringing, it’s clear that I am a person of service someone who believes in sacrifice for future generations. Everything I do whether it’s humanitarian work, business, or education centers on one thing: people and community-based impact.
That’s why my journey began in humanitarian work, founding and managing the Safe Haven Association to support orphans and women affected by HIV/AIDS in Ethiopia. But after eight years of service, I realized that charity alone would never break the cycle of poverty in Africa. It’s a temporary relief, but education, training, and entrepreneurship are the lasting keys to uplifting youth and building a sustainable future.
This realization led me to establish Golden Stars College, a private higher education institution, and Golden Bridge Training and Consultancy, its sister company. Both focus on empowering young people, especially those from marginalized backgrounds, by equipping them with knowledge, skills, and technology to transform their futures.
Capital: What’s the impact of your ambassadorship and column?”
Yohanna: I am appointed both by different organization from Canada as the Global Ambassador for the African Heritage Center, my role is to advocate for the preservation and global recognition of Africa’s rich cultural heritage and lifestyles. The center celebrates African history, excellence, arts, music, food, language, and the diverse ethnicities that make up our continent in Canada and beyond. It is a space that is distinctly African but open to the world, where we can highlight the history, civilization and the true non-biased story of Africa in all its forms to the world.
Living in Ethiopia, which is home to the headquarters of the African Union, places me in the ideal position to engage with African delegates, embassies, and global organizations. This unique location allows me to build connections.
In addition to my commitment with the African Heritage Center, my role as a columnist for Sable and Gold magazine publish in Canada provides another platform to advocate for Africa. Through this magazine, I have the opportunity to amplify African voices, discuss our culture, history, and lifestyles, and reshape the global narrative about Africa.
Capital: What is the most inspiring success story you’ve witnessed through your work?
Yohanna: Success is not a destination it’s a journey of impact, resilience, and transformation. For me, success isn’t measured by wealth only but in the lives changed, barriers broken, and opportunities created along the way. Every day, I strive to push boundaries, open new doors, and introduce fresh approaches that empower individuals to rise beyond their circumstances.
I have witnessed young women who once had no access to education now becoming leaders in their communities. I have seen students, once uncertain of their future, transform into innovators and entrepreneurs. These stories are the true measure of success the ripple effect of change that continues beyond my own journey. I am not just working toward success; I am building a legacy of impact that will outlive me.
Capital: What are your future plans and how do you envision the next steps for your ventures?
Yohanna: My future plans are centered around creating sustainable change and expanding the impact of both Golden Stars College and Golden Bridge Training and Consultancy. I envision transforming education in Ethiopia and across East Africa by building a more inclusive, accessible, and innovative educational system that empowers individuals—particularly women and young people.
One of my key goals is to expand Golden Stars College into new regions and enhance its academic offerings. I plan to establish a KG-12 educational system and a Women’s Leadership Center in multiple cities, providing more comprehensive education and training opportunities. This will help bridge the gap in quality education and give students a clear path to success in their careers and lives.
Additionally, I am working towards fostering stronger international partnerships with universities and institutions worldwide to bring global knowledge and opportunities to African students to ensure our students have a global perspective and competitive edge.
Finally, I’m looking into investing in technology and research. We are entering an era where tech-driven solutions can address many challenges in education, business, and leadership development. Ultimately, my future plan is to scale my impact through continuous innovation, collaboration, and leadership, building a legacy of empowerment that will resonate for generations to come
