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Improving productivity

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Kenichi Ohno is a Japanese professor at the National Graduate Institute for Policy Studies. He specialized in comparative research on industrial strategies how 21st century latecomer countries can industrialize under globalization pressure from the economic as well as political and social perspectives, in Asia and Africa. He have been working on economic issues of east Asia and east Africa. He has advised Vietnam for 15 years and currently conducts regular policy dialogue with the Ethiopian government. For the last 12 years he was advising governments on the economic issues of the country.
Recently he was participating to conduct policy dialog on Ethiopian productivity jointly with Ethiopian Policy Study Institution (PSI) and national graduate institute for the policy studies. He talked to Capital about his work. Excerpts;

Capital: The Ethiopian policy studies institute in collaboration with the national graduate institute for policy studies has conduct Ethiopian productivity report, what was your role?
Kenichi Ohno: My role on the report was to guide the Ethiopian researchers from the PSI. When you do research to the government you have to do it differently from scientific, academic or journals, you have to write or speak the government language, you don’t get to be too theoretical or mathematical and you use easier language.
I wrote the most miner things, which will help them to attract the attention of the policy makers. And the other is that to initiating the fund to conduct the research, to make it join effort between the Ethiopia government and the Japanese.

Capital: What are the major findings of the research?
Kenichi Ohno: There are a lot of findings that are listed on the executive summary of the report, but the strong findings is that labor productivity grew at the annual average of 4.9 percent, which is not bad but not good, still low. Ethiopia should accelerate to catch up with other countries. Services grew fastest in labor productivity. The very interesting fact in Ethiopia is that of migration to the urban areas. In other countries migration of farmers to the next developed city is high, in Ethiopia it is low even if there is high industrializing and urban development. It is very unusual at this level of development, farmers migration is very low, why is not happening like the other countries is one of my questions, and when they migrate they move to the service sector not the manufacturing, we don’t know what kind of services, is the other question.

Capital: What was the major challenge that you face when you conduct the report?
Kenichi Ohno: The main challenge is finding data.

Capital: How do you see the current foreign exchange shortage in the country as an economist?
Kenichi Ohno: In terms of this I got three suggestions which are the short term, middle term and the long term solutions: the first is that the short term, which is borrowing a big amount of money from somewhere, but not with commercial interest rate which is very high so borrow from IMF, world bank and other donors with low interest rate, I think PM Abiy’s government is doing it, I agree with that. This may not be enough so they should go to other donors and the diaspora.
Allocation of foreign exchange to vital sectors such as medication should be done. The medium term and the long term solution is that the country needs to generate more and create value. Value creation in Ethiopia is very limited.
Many officials says more FDI is coming so wait a little bit and you will have more foreign currency, I don’t think that is true because the value creation in Ethiopia is very limited which doesn’t generate more profit and income, not competitive things are imported and exported with a little bit of adding value.
There will be a turning point so you have to use multiple approaches to solve it, don’t expect a miracle in one night.
Another thing is remittance from the diaspora, this will be positive and long term solution if Ethiopian diaspora become more confident about the government’s policy. It will happen faster than FDI in turning surplus like the Vietnams experience.
If the government is working right and Ethiopia continues to grow, many Ethiopians would be happy to invest and do business. At the same time as I said it before the government need to save money, improving buildings, government offices and parks; it is good it costs too much money and you have to limit the budget, these visible achievements should be seen. In japan if you go to the minister’s office it is very crowded and old.

Capital: What should be done to attract more FDI into the country? What is your suggestion?
Kenichi Ohno: It is very complicated and difficult. First you have to know the different types of FDI, I was telling the Ethiopian investment commission about this. You have to know what is happening in other countries about FDI and industrial parks.
You have to know what modern countries investors want. Should also provide small shades in the industrial parks for investors who need small place and they can produce a lot, because some investors want to have small investment and some tends to have huge investment so it should be ready to serve both, for example Korean investors invest huge amount of money and Japanese don’t do that. So you have to know all these and let them create value, these requires a lot of knowledge and experience.
The other thing is that don’t limit the minimum investment flows the new proclamation stated investment starting from 250,000 dollar, that is too big size for Japanese investors, so don’t limit the capital size and allow the small one also to invest.

Capital: Can you compare the economic development and capacity of east Africa and East Asia?
Kenichi Ohno: Each country is different, Japan and Korea are different and some of the countries are backward because of some political and other issues. The way of handling industries and investors is also different, even if there are some common areas. Making good policies is the main point.
Many people say east Asia is developed and east Africa is lagging behind so we have to adopt different approach. My approach is that, we don’t need to worry about whether the country is in Africa or in Asia, treat the country individually. Something that works in Vietnam may not work in Ethiopia.

Addis Abeba Diplomatic Capital of Africa?

Addis Abeba is known as the ‘Diplomatic Capital of Africa’, with every nation, particularly Continental, situating an Embassy or Chancery in the fast moving mountain city. That said, we would expect Addis to be one of the most diverse, prolific Pan African cities on the continent. Is it? If not then why not? How can this change and whose responsibility is it to realize this transformation? So here we go. No, Addis is not the most culturally diverse Pan African city in Africa. And though filled with substantial continental political, cultural and social institutions/missions, they appear to go about their jobs and mandates, hosting private events for colleagues, kith and kin and ofcourse maintaining good relations with local and federal government, paying their rent, taxes and “dues”.
Now don’t get me wrong, we are well aware of the “African music” nights at clubs and African restaurants that pop up here and there, typically close to the AU. But beyond that, there is not a whole lot happening on the Pan African cultural or social scene that says Addis Abeba IS a dynamic African hotspot. In all fairness, its typically private sector that identifies need in the market and proceeds to meet said. Enters Qetselawork Seifu, a decade plus producer and host of Sheger FM’s Africa Weyan. The Ethiopian born, Sandford educated and internationally travelled, mom of two and wife to renowned musician Tewodros “Teddy Ahadoo” Akililu, is on a mission to make sure Africa unites through music. Her popular radio show includes music from the Africa’s 6 regions woven together with touches of history and heritage in an effort to educate and entertain her mostly Ethiopian listenership. Qetsela also keeps those of us seeking musical retreats after work or on weekends with her African-reggae mix on Sundays at Metro Club located at the Hyatt Regency on Bole. The easy going music and cultural promoter has also made her mark working with artists from North, South and West of Ethiopia hosting renowned African musicians and vocalists around the city with a stream of shows, simply stating, “I am committed…”.
In the past, on the visual art side, artist/curator Konjit Seyoume of Asni Art Gallery has also made strides hosting African artists for exhibitions and workshops alike. These collaborations have created lifetime friendships and connections to Addis with artists such as Zambian Zenzele Chulu. There were also one offs with embassies such as the South Africa Embassy’s 2019 pop up show for motorcycle marvel of an artist Reggie Khumalo. He rode from the Cape to Cairo, stopping n Addis where his large paintings depicting Ubuntu, the South African proverb, “I am because you are,” were snapped up by ETREP’s Gossa Oda in an auction. Reggie’s paintings are now displayed in the ETREP/Goma Kuteba’s CSR initiative, Medemer Africa Art & Sculpture Space known as Medemer Africa or MAASS. Located in the heart of the business district, directly across from the Ministry of Health, Medemer Africa has been positioned to become the space that all African artists, art lovers and inquiring minds seeking a cool space in the city to chill are welcomed. A cup of coffee, a stroll around Tesfahun Kibru’s spectacular sculptures, the cozy fire pit amphitheater for poets, or just to sit and think for a moment during lunch break for bankers and builders …there is something for everyone. Though incomparable in size, it reminds me of Central Park in New York City, an oasis amidst the high rise buildings where the green space adds value to the quality of life for city dwellers. Full disclosure, it is my pleasure and honor to work with Goma Kuteba to ensure a well-curated space for all.
So there is hope on the horizon and Addis Abeba should not be counted out as a significant future contemporary cultural mecca in Africa based on our past and even present situation. Instead, the prospect for the city to become the Diplomatic Capital twinned with a Cultural Pan African identity is feasible. This should be a wider discourse and desire to connect with the continent and grow culture and tourism aimed at those who are already here on post. As they say, “ A bird in the hand in the more than two in the bush…” So as hundreds of youth pour out of the Tourism Schools dotting the city and as we realize that folks don’t and can’t always leave the city for historic sightseeing etc. we must find ways to capitalize on the opportunities to provide for all Africans living in Addis. With this comes employment and expansion of minds and hearts. And with the “invention being the mother of necessity” let us continue to support the efforts of promoters like Qetsela and ensure spaces like Medemer Africa are given the opportunity and support to thrive, for the sake of our city, Addis Abeba, diplomatic capital of Africa.

Dr. Desta Meghoo is a Jamaican born
Creative Consultant, Curator and cultural promoter based in Ethiopia since 2005. She also serves as Liaison to the AU for the Ghana based, Diaspora African Forum.

Eyerusalem Meshesha

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Name: Eyerusalem Meshesha

Education: Degree in Architecture

Company name: Balubet

Title: Founder and Owner

Founded in: 2019

What it does: Delivery and tracking system

HQ: Addis Ababa

Number of employees: 17

Startup Capital: 1,000,000 birr

Current capital: Growing

Reasons for starting the business: To create system for better job opportunity

Biggest perk of ownership: Seeing everything as an opportunity

Biggest strength: Risk taker

Biggest challenging: Culture of new thing acceptance and communicating with government bodies

Plan: Creating safe and strong delivery company

First career: Architect

Most interested in meeting: Dagmawit Mogess, Minister of Transport

Most admired person: My mother

Stress reducer: Mingle with people

Favorite past time: Having time with my friends

Favorite book: “poor dad, rich dad”

Favorite destination: Silicon Valley

Favorite automobile: Electric cars

“Antroshet” Mother’s day celebration

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The traditional mother’s day ‘Antroshet’ was celebrated among Gurage people in Cheha woreda, in the southern part of the country.
This year festival was organized by the women’s, children and youth affairs of the zone. The cultural mother’s day event was celebrated by the people with different cultural and traditional activities and foods, drinks, dances and mostly by remembering and expressing thanks to all mothers.