Wednesday, September 23, 2026
Home Blog Page 69

Fetiya Mohammed

0

2. Education: (የት/ት ደረጃ)
    BA in Sociology

3. Company name: (የመስሪያ ቤቱ ስም)
Liyu Liquid Soap Manufacturing and Chemical Supplier

4. Title: (የስራ ድርሻህ)
   Owner
5. Founded in: (መቼ ተመሰረተ)
    2025
6. What it does: (ምንድነው የሚሰራው)

 Providing soap-making training and manufacturing liquid soap


7. Headquarters: (ዋና መስሪያ ቤት)
     Addis Ababa
8. Start-up capital: (በምን ያህል ገንዘብ ስራዉን ጀመርሽ/ክ)
     50,000 birr
9. Current capital: (የአሁን ካፒታል )
    growing
10. Number of employees:(የሰራተኞች ቁጥር)
    2
11. Reason for starting the business: (ለስራው መጀመር ምክንያት)

Being unable to find a satisfactory job that could change my life in my field of study
12. Biggest perk of ownership: (የባለቤትነት ጥቅም)
   
Being your own boss
13. Biggest strength: (ጥንካሬህ/ሽ)
     Creating strong business networks

14. Biggest challenge: (ተግዳሮት)
     Rising cost of raw materials
15. Plan: (እቅድ)
     Opening a training center

16. First career path: (የመጀመሪያ ስራ)
None
17. Most interested in meeting: (ማግኘት የምትፈልጊ/ገው ሰው)
   Successful people in this sector, especially women

18. Most admired person:(የምታደንቂ/ቀው ሰው)
My mother
19. Stress reducer: (ጭንቀትን የሚያቀልልሽ/ለህ)
    
Walking long distances in silence
20. Favorite book: (የመፅሐፍ ምርጫ)
     Qur’an
21. Favorite pastime: (ማድረግ የሚያስደስትህ)
     Watching movies
22. Favorite destination to travel to: (ከኢትዮጵያ ውጪ መሄድ የምትፈልጊ/ገዉ ስፍራ)
Dubai
23. Favorite automobile: (የመኪና ምርጫ)
None

The missing link: From classroom to boardroom

0

There is a need to address the missing link between the level of responsibility entrusted to people and the failures they often exhibit. What metrics should be used to assess whether someone is truly fit for a role? It is clear that corrupt assignment practices based on social relations, ethnic ties, godfatherly favors, and nepotism—forms of identity-based patronage—seriously undermine fairness and narrow the space for merit and healthy competition. This impedes meaningful progress and weakens useful institutional practice. How can we create a rational space that allows capable and skilled individuals to emerge, discharge their responsibilities effectively, and contribute to the betterment of the system?

Many people say the answer is simple: merit-based competency frameworks and transparent track-record verification, supported by oversight and qualification documents that testify to an individual’s experience. But the challenge is that most credential letters from different organizations have become routine instruments of politeness. They often provide warm exit statements, glowing testimonials, and flattering language that wish departing employees well, regardless of actual performance. This creates a weak link between real competence and the documents that are supposed to prove it.

Many organizations default to issuing sanitized exit letters to avoid conflict or to show undue favor. If hiring or promotion decisions rely heavily on such credential letters, the system becomes merit-based in name but patronage-based in practice, because the verification layer is soft and easily manipulated.

This is one of the most frustrating and pervasive challenges in organizational governance. Credential inflation is not a problem limited to one department or one institution. It is a systemic issue that contributes to the failure of many institutions.

To create a rational space where truly capable people can emerge, organizations must stop relying on proxy metrics to evaluate quality. Genuine mechanisms must be developed to bypass soft verification layers and accurately assess a person’s fitness for a role.

To reduce the influence of nepotism and generic recommendation letters, assessment metrics must be observable, quantifiable, and difficult to fake. Instead of simply asking candidates whether they can do a job, give them a real slice of the work. This might mean presenting them with a current, anonymized crisis the organization is facing and asking them to draft a turnaround strategy or complete a similar practical test as a gate exam.

An effective assessment should examine how an individual responds to high-stakes, ethically complex, or ambiguous situations. This helps test judgment and character, not just technical knowledge. During the assessment, candidates should also be required to provide verifiable metrics from a project that failed under their watch, along with the structural changes they implemented to fix it. If they can offer only vague or generic explanations, that should be treated as a warning sign rather than as proof of capability.

Subordinates and peers often know a leader’s true capability better than the executives who hired them. That is why incorporating blind evaluations from a candidate’s former peers—not just their superiors—can help pierce the veil of favoritism in the assessment process. This would reduce the flaws in traditional verification.

It is also possible to conduct background checks by reaching out to shared connections, former clients, or external stakeholders who worked with the candidate, in order to obtain supporting evidence. Going deeper into claimed achievements by asking how they were accomplished, what the budget was, and who else was on the team can help expose exaggerated credit and provide stronger evidence of competence.

Unless fair metrics are established, capable people will continue to be blocked by a traditional evaluation system that relies too heavily on flattering credential letters. There is a serious need to build firewalls against identity-based patronage.

Removing names, gender markers, ethnic identifiers, and even the names of specific universities from the first round of application screening can help evaluators assess candidates more objectively, based purely on their answers to technical or situational questions. This immediately reduces the advantage of social connection at the starting line.

There is also a need for panel-based decisions rather than solo hires. Otherwise, nepotism thrives in the dark, especially when one powerful individual has unilateral hiring and firing power. Decisions for critical roles should be made by a diverse panel that includes stakeholders from outside the immediate department. Each panel member should use a strict, pre-agreed scoring rubric so that subjective “gut feelings” are minimized.

In addition, the best way to counter inflated resumes is to enforce rigorous probationary periods and make the first phase of employment a genuine test. Clear, objective Key Performance Indicators should be set from day one. If the employee fails to meet them because they lack the competence their resume claimed, the contract should be terminated. Probation must stop being a rubber stamp and become the final, most rigorous phase of the hiring process.

A committee or process that automatically approves decisions without real review, critical thinking, or oversight—or a board that simply agrees with whatever the CEO or senior official wants—creates a fatal flaw in the hiring system.

When an employee is hired on probation or a trial period, management has a chance to decide on permanent employment based on actual performance. This may also help address the wider problem of poor educational outcomes that have long gone unnoticed in our country.

This approach can help diagnose persistent problems of nepotism, credential inflation, and rubber-stamp oversight with concrete, observable solutions. It can serve as a comprehensive and effective blueprint for institutional reform.

The recent reality in the national education system, where exam pass rates reportedly dropped to around 3 percent after strict anti-cheating and standardized verification measures were enforced, mirrors this institutional crisis. For years, the education system suffered from its own version of credential inflation. Students advanced, grades were awarded, and certificates were printed, but the verification layer was weak. In that sense, the existence of such a problem is no surprise.

If the credentialing layer that is supposed to certify competence is itself inflated, then every downstream mechanism that relies on “checking the qualification document” is inheriting a corrupted signal from the very beginning. The exit-letter problem described earlier is not an isolated organizational failure; it is the same soft-verification pathology recurring at an earlier stage of the pipeline.

A student who advances through a system with weak grading standards becomes a job candidate with an inflated transcript, who then enters a workplace that hires partly on transcript strength and warm credential letters that serve as testimony for evaluators. Sometimes, someone who was never rigorously tested later sits on a committee to judge whether others meet a standard they themselves never had to clear. In that way, each layer normalizes the next.

Verification is not a single checkpoint; it is a chain. A weak link anywhere upstream propagates forward. A 3 percent pass rate under strict verification, compared with the pass rate under the old regime, is itself a measurement of how much slack had built up in the system. That gap reveals the scale of the inflation problem for the first time.

This matters because “fixing the missing link” and “making up for the fact that it has been missing” are two different projects. You cannot simply restore rigorous verification going forward and call the problem solved. You are left with a large existing population of graduates, credential holders, and evaluators whose paper trail was produced under a broken system.

I believe this reveals a structural failure and the need to rebuild meritocracy from education to employment. We must address the whole missing link in the system and fix the problem through competency-based frameworks.

NBE defends stance amid banks’ liquidity concerns

0

The National Bank of Ethiopia (NBE) is pushing back against calls for increased intervention in managing banks’ liquidity challenges. The central bank asserts that commercial banks are responsible for their own financial management, while its role is limited to providing regulatory frameworks and liquidity instruments.

This debate has arisen following concerns from financial sector experts about growing liquidity pressures on banks. These pressures include sudden deposit withdrawals and increased competition for savings from non-bank financial institutions, such as Savings and Credit Cooperative Societies (SACCOs).

Some experts advocate for the central bank to expand its oversight to identify potential risks to banks’ liquidity and implement preventive measures to safeguard financial system stability. They point to recent challenges faced by some banks, including Global Bank of Ethiopia (GBE), as evidence of vulnerabilities in deposit mobilization and liquidity management, particularly among small and medium-sized financial institutions.

While details of GBE’s recent difficulties remain largely undisclosed, sector sources indicate that sudden erosion of deposits, especially time deposits, was a significant factor. Although governance issues were also identified at GBE, liquidity management has become a broader concern for several emerging banks.

However, NBE Chief Economist and Vice Governor Fikadu Digafe stated that the central bank already provides several support mechanisms and expects institutions to manage their liquidity based on their capacity and business strategies.

“As a basic principle, banks are established by shareholders with the objective of making profits while operating under the rules and regulations set by the central bank. They know their responsibilities and what is expected from them,” Fikadu told Capital.

He highlighted that the NBE has introduced various liquidity management tools, including the interbank money market, standing facilities, and emergency liquidity support mechanisms.

“We have put instruments, codes of conduct, directives, and standing facilities that banks can use to fill their liquidity needs. There are also liquidity and reserve requirements,” he explained.

According to Fikadu, managing deposits, interest rates, and daily operations remains the responsibility of bank management and boards of directors.

“The question is what a bank will do regarding the rise of deposit interest rates and how it will manage its business. The responsibility of running the bank remains with the institution itself,” he emphasized.

This discussion comes shortly after the NBE removed former Global Bank of Ethiopia CEO Tesfaye Boru following a special inspection that uncovered regulatory violations.

The central bank reported that the inspection covered corporate governance, lending practices, human resource management, foreign exchange operations, and overall financial management. The findings revealed deficiencies and breaches of regulatory requirements and internal policies.

The NBE stated that the bank’s board and senior management acknowledged the findings and submitted a corrective action plan. However, the regulator deemed the issues sufficiently serious, especially considering previous warnings issued to Tesfaye, to necessitate stronger action.

Consequently, Tesfaye was removed from his position, effective July 28, 2026, and banned for five years from holding senior executive or board positions in any Ethiopian financial institution.

On Friday, August 7, GBE announced it had implemented administrative measures but did not provide further details.

Meanwhile, experts have expressed concerns about the competition between SACCOs and banks for attracting deposits.

Industry sources indicate that some SACCOs are offering interest rates as high as 35 percent on certain savings products, significantly exceeding the approximately 26 percent offered by commercial banks on time deposits.

While acknowledging the crucial role SACCOs play in expanding financial access and serving communities underserved by traditional banks, experts argued that aggressive deposit mobilization by SACCOs could put additional pressure on banks, particularly smaller ones.

They also questioned whether the current regulatory framework for SACCOs adequately addresses their impact on the broader financial sector.

Fikadu explained that SACCOs are not regulated by the NBE because they are not classified as deposit-taking financial institutions under the central bank’s mandate.

“SACCOs have never been under NBE regulation, so the central bank has no role in regulating them,” he stated.

He maintained that liquidity within the banking system remains under the central bank’s supervision and that monetary policy tools enable the regulator to manage inflationary pressures.

“We can monitor liquidity at banks, and inflationary behavior is fully controlled through the monetary system. Since currency circulation occurs either within or outside banks, controlling these channels allows us to manage liquidity,” he explained.

Nevertheless, experts contend that as Ethiopia’s financial sector expands and competition intensifies, enhanced coordination among financial regulators will be essential to safeguard financial stability and maintain public confidence in the banking system.

Local entrepreneurs present innovative solutions to strengthen food systems and resilience

0

Iceaddis, in partnership with the United Nations World Food Programme (WFP), today hosted the IGNITE Food Systems Innovation Challenge Ethiopia 2.0 Demonstration Day, celebrating seven Ethiopian ventures developing innovative and scalable solutions to strengthen food security, sustainable agriculture, and climate resilience.

Held at Capital Hotel in Addis Ababa, the event brought together government representatives, development partners, investors, entrepreneurs, civil society organizations, and media to spotlight locally led innovations that are helping transform Ethiopia’s food systems and create economic opportunities for communities.

The event showcased seven innovative agrifood ventures from the Somali and Tigray regions that have completed the second round of the IGNITE Food Systems Innovation Challenge, a programme designed to support entrepreneurs developing solutions that strengthen food security, improve agricultural productivity, create livelihoods, and build resilience to climate-related shocks.