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Betelehem Kassa

Name: Betelehem  Kassa

Education: Level 5 Garment Production Management

Company name: Betty Cultural Cloth

Title: Founder and Manager

 Founded in: 2016

What it does: Designing and Selling clothes

HQ: Jemo 1, JEMO building 2nd floor

Number of employees: 3

Startup Capital :    10,000  birr

Current capital :  Growing

Reasons for starting the business: Interest on the business

Biggest strength: I am confident

Biggest perks of Ownership: Self employment

Plan: To expand the business

Biggest challenge: Finding new customers

First career : Designing instructor

Most interested in meeting : Teddy Afro

Most admired person: My mom

Stress reducer : Walking

Favorite past-time: Reading

Favorite book: The Secret

Favorite destination: France

Favorite automobile : Toyota

About buying and selling

Consumers around the world have many similar needs. All people must eat, drink and have a roof over their heads. Once these basic needs are met, people will try and improve their standard of living: a more comfortable home, more recreation and higher social status. Although basic needs and the desire to improve the standard of living are universal, people’s ability to achieve these objectives is not the same at all. The economic, political and social structures of the country people live in affect the ability of people to achieve these goals. To understand consumers, whether here in Ethiopia or in a country where you intend to export your products to, you must examine four aspects of consumer behaviour:
What they can afford.
What they need.
Why they buy.
And how they buy.
What people can afford varies significantly from country to country and the total wealth in a country is an important indicator of market potential. Governments have a major influence on the distribution of wealth in their country, by means of policies, taxes or ownership of industries for example. Low wages and unemployment are factors that increase the lower income class. Concentration of business ownership in a few families or individuals decreases the size of the upper class.
People spend money to satisfy their needs. They will first fulfil their basic needs like food, clothes and housing before spending money on more luxury items. Consumption patterns therefore differ tremendously between classes of a society and between different countries. In less developed countries people tend to spend a bigger part of their income on food and in richer countries they will spend relatively more on health, recreation and education for example.
Next, we need to find out why people buy what they buy, in other words what are the motives of consumers. Culture and norms come into the picture here. With the rich coffee culture in Ethiopia and the ceremony around it for instance, few Ethiopians will be treating their visitors on a cup of instant coffee. And pork products for example are not eaten by most Ethiopians for religious reasons.
Social class is another factor. People who belong to the same social class, based on their income, education and occupations, tend to have similar buying patterns. They may wear the same kinds of clothes, sunglasses, jewellery, watches, handbags, etc.  At home they may have appliances like a tv, satellite dish, computer, or they will drive a certain type of car. And their children are likely to want certain things as well, e.g. toys and kinds of shoes.
It also matters who makes the decisions at home when it comes to spending the money and buying for the family. Ask yourself who for example buys any of the following items. Is it the husband, the wife or do they decide together on buying the groceries, furniture, the electrical appliances in the house, insurances or the car? And what influence do the children have? Mind you, many marketing strategies target children and they are informed more and more. They hear or have an opinion about what is cool, what is healthy, what is trendy and they tell their parents. Or they know what is hidden as a surprise in the box of cornflakes for instance. Mothers have a hard time explaining that the other brand is just as good.
Levels of education and literacy play a role as well. They go hand in hand with the economic development of a country. A low level of literacy affects the market in two ways. First, it reduces the market for products that require reading such as books and magazines. Second, it reduces the effectiveness of advertising. There may be a relation here with the way companies advertise their products on ETV, in the form of drama. Not a bad strategy I would say, considering most people watching ETV around that time.
We must be careful though not to generalize consumer behaviour too much. Consumption patterns of individual buyers still vary considerably. Not everybody in the same social class will buy the same goods. Many consumers are careful with spending their money and balance quality with the price they are willing to pay. A wise consumer will ask two questions before actually buying a product:
Do I need it? Can I afford it? The challenge for the seller and producer therefore is to find out what people need most and what they afford.

Ton Haverkort

Future foundations

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The Global Alliance for Improved Nutrition (GAIN) set up its Ethiopia Country Office in 2012 and has since engaged in Large Scale Food Fortification such as salt iodization, in cooperation with UNICEF and Complementary Feeding projects. The organization is also working on new activities that are in their development stage are fortification of dairy products (yoghurt) and reducing food loss along selected value chains. Capital Spoke to GAIN’s Executive Director Dr. Lawrence Haddad who visited Ethiopia this week. He discussed the trend of nutrition worldwide and why governments don’t invest as much as they used in nutrition.

 

Capital: What kind of trends are you seeing globally when it comes to nutrition?

Dr Lawrence Haddad: There are different types of malnutrition; there is malnutrition from not having enough food to eat, there is malnutrition from not having the right kinds of food to eat and there is malnutrition from having too much of the wrong food to eat.

The under nutrition from not having enough food to eat that is going down; it is going down slowly but there is still progress. Globally I think about a little over 20 years ago there were 250 million kids worldwide who were stunted; too short for their age: you think they are 5 years old but really they are 9 years old. That number has gone down to 125 million in the last 25 years or so. It’s not rapped enough but it’s still good.

Micronutrient deficiencies; people who don’t get enough Iron, Zink or vitamin A or B and that kind of stuff, those numbers haven’t gone down that quickly; they are quite static. Women’s anemia rates globally, the target is to halve those rates by 2030 but we will miss that target by many years at the rate we are going.

On top of that you have got things like obesity, overweight diabetes which are all linked to poor diet skyrocketing in many countries. My country which is the UK a third of the population is obis, it’s not increasing, but it’s not going down. In countries like Ethiopia it is still very low but it is increasing rapidly.

It’s quite a mixed picture, we need to put our foot on the accelerator under nutrition, and a foot on the break to stop over nutrition and at the center of all of that is diet and the quality of what people eat.

Capital: One of the challenges for the nutrition issue is that there isn’t one specific body that is responsible for it. It is about health, education, agriculture and so on. Which body should be responsible for it?

Dr Haddad: When you look at countries that have done really well, for the last 10, 15 years what we find is that the responsibility for nutrition rests in the Prime Minister’s or the President’s or the vice prime minister’s office, or the ministry of planning which cuts across all sectors and its high up in government. So you need something that cuts across all the sectors.

Ministry of health is obviously very important but sometimes they are not considered a core economic development issue, or even if they are important, they only are part of solution; agriculture, education, water and sanitation, poverty they are all part of the issue, so you need a high level mechanism.

The government of India after a very long time of nagging and encouraging by people like me has created what’s called a national mission which is run out of the Prime Minister’s office which says, ending malnutrition or reducing malnutrition is a national priority and it is going to create a mechanism where all the ministries feed in and coordinate. So every country, to be successful, has to do the same.

Capital: In Ethiopia 80 percent of the population is in farming but we haven’t been able to produce enough food to feed everyone, we still import a large amount of wheat. So how can we focus on nutrition when there isn’t enough food to consume to begin with?

Dr Haddad: Malnutrition is caused by poor water, sanitation, poor education, poverty. Agriculture is really important because it generates food but it also generates income. It generates income for the farmers, it generates income for those people the farmer buys inputs; if the farmer is doing well then the farmer will buy machineries and other things so those people that provide that will do well and if those people are doing well they will buy stuff from the farmers. By having farmers who are more profitable, they will tend to produce more food and also produce it at a lower price.

Most people can buy enough of the stipple food, obviously there are some that can’t; but many more people can’t buy the right kinds of food, they rely on steeple food for 90 percent of their calories. Maybe they get 5 to 10 percent of their calories from fruits and vegetables, dairy and others. It’s these other kinds of food that are very rich in vitamins, minerals and proteins that are so important for a really good growth for children and adults.

What we can do in agriculture is try to make farmers more profitable and productive but not just in cereals but also in things that are really just don’t fill stomachs but also nourish as well.

Capital: Do you think culture plays a role in nutrition and what people prefer to eat as well?

Dr Haddad: I think culture is very important in all countries. It is one of the most important things that determine what families buy and it certainly does in my family. Income and price matters and culture and taste matters, availability also matters.

I think we have been doing two things wrong. One is that we haven’t been creative enough in creating a demand for healthier foods. Most public sector government run campaigns for healthier foods are usually dull.  People don’t buy food because they have more nutrients in them or fiber or because they are good for them. People tend to buy food because it tastes good and because it says something about them as a person.

So most behavior change programs that demand are not creative enough and don’t understand consumers enough. They treat people as recipient of program rather than agents who have choices. GAIN works to try and bring government scientists with marketers not from food companies but just people who know how to sell things. We bring them together to create emotional, funny, engaging messages.

The second thing to do differently is not necessarily relay on farmers or women to do backyard production of fruits and vegetables, it’s difficult to sustain. We really should be rewarding companies; small companies, midsize companies and even big companies who do produce fruits and vegetables, they need to be incentivized, let’s think about giving them lower tax rates, low utility rates.

We create business parks for those who produce for exports because government says it’s important for the economy, we should also create business parks for companies producing health foods.

Capital: Do you think governments are open to ideas of giving incentives to companies as a way of encouragement?

Dr Haddad: Governments are open to giving all kinds of incentives to business and consumers. I think the stumbling point of many governments in Africa, Asia and in my country too, they think it is all about consumer choice and consumers are irresponsible and buying the wrong food. There is an element of choice, but it’s really about the environment we face.

If I am faced with only cheep junk food and expensive food, I will the junk food because that is what I can afford. But if I find healthier and affordable options then maybe I will buy more of that. So it is about choice, but it is also about what space you have to exercise that choice in.

Capital: Can you give us an example of a country that has been successful when it comes to lowering or ending malnutrition?

Dr Haddad: First I want to say that Ethiopia has been quiet successful. It has reduced its stunting rate from 58 percent to almost 38 percent; in a period of 20 years and that is a good rate. Ghana has really done an amazing job in reducing its malnutrition rate; it has reduced it from 38 percent to about 19 percent, halving the stunting rate.

You have to look at reducing malnutrition as a chain; every link in the chain has to be strong. Ghana has had reasonable economic growth and that is important because it means families can afford better food, sanitation and so on.

Ghana has had also a commitment from the top to do something about hunger, not so much about nutrition, but hunger. It all starts with leadership; if I can talk to your Prime Minister I would say that I hope he is as interested in child growth as he is in economic growth.

I would say, Ethiopia stands a chance of being an industrial revolution powerhouse in 15 to 20 years if it invests in its kids today because those kids, if you don’t invest in their nutrition today, their brains won’t develop, their immune system won’t develop, they won’t do well in school, labor market, they are not going to be as innovative, they are less likely to be entrepreneurs and we have got really hard evidence to show this following kids who were well nourished verses kids that are malnourished.

You see what happens to them 20, 30 years down the road, they are more likely to live in poverty, less likely to have jobs, good wages. If you want a demographic dividend you better invest in kids now, if you don’t you are going to have a demographic nightmare.

Capital: The long term effect of malnutrition is devastating for a country’s growth and there is evidence for that. Then why does it continue to be a difficult decision for governments to invest in it?

Dr Haddad: I have had a lot of experience speaking to ministers of finance who say well it should be the responsibility of ministers of health. The economist who won the Nobel Prize a couple of years ago Angus Deaton, spent his life looking at the economic return of improved nutrition. Some of the estimates we have in top economic journals is that for every dollar invested in nutrition interventions, programs, you get 16 dollars back. I think for Ethiopia, that number is even higher.

The trick is that 16 dollars is not realized for about a 20 year period so it is difficult for politicians; they want results now and not in 16 years of time. The way you can appeal to politicians is to appeal to them on lives saved. 45 percent of all deaths under the age of three are related to malnutrition. You just have to figure out what your different politicians are triggered by; is it preventing child death, is it promoting economic growth, laying the foundation for next generations. Nutrition champions have to be really clever in how they approach.

AIs Ababa Health Bureau announces launch of women’s folic acid awareness campaign

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The Addis Ababa Health Bureau announces its newest campaign to combat spina bifida and hydrocephalus, birth defects that affect the development of the spine, spinal cord and the brain, leading to paralysis and early death.
In partnership with the Ministry of Health, Addis Ababa Health Bureau, Rotary International, and ReachAnother Foundation, the campaign  aims to promote the awareness and consumption of folic acid, (a form of vitamin B), which is crucial to the healthy development of newborns.
In Ethiopia, approximately 1 in 500 pregnancies are affected by spina bifida and hydrocephalus. The campaign will feature television and radio advertisements, and pamphlets distributed throughout hospitals and health clinics in Addis Ababa, drawing attention to the need for expectant mothers to consume folic acid before becoming pregnant. Additionally, all health extension workers and maternal health experts have been trained to counsel expectant mothers.
Reach Another Foundation (RAF) is a US-based, non-profit organization committed to promoting better healthcare and special education services for medically underserved communities in Ethiopia.