ssible
!
ADDIS BUSINESS
Dec./Jan. 2023 011-5573544 2458 E-mail: info@addischamber.com www.addischamber.com
Addis Chamber
reinvigorates its
membership at the
International Chamber
of Commerce
By Staff Reporter
Turning its 77th years of Anniversary, Addis
Chamber has persisted to be the voice of
the private sector thus provides business
development and advocacy services to its
members helping them to, start, run, and grow
their businesses.
Furthermore, Addis Chamber has been
recognized for its engagement to strengthen
the private sector through providing multiples
of services to promote trade and investment
and continued its journey serving as a bridge
between the government and private sector.
Boosting its international relations, Addis
Chamber has reinstituted its membership at
the International Chamber of Commerce that
is expected to enhance the engagement the
organization to further boost its services and
outreach.
Such renewed ties with ICC will have also
paramount importance in widening networking
opportunities as well as forging partnership in
the fast dynamic business environment.
Open For Ad
o
It’s P
Preparation is underway to host the 26th Addis
Chamber International Trade Fair
By Ashenafi Mitiku
Undertaking grand trade shows are among key activities of Addis Chamber that intends to promote
trade and investment in Ethiopia. Such events are taking place for long years connecting businesses
and forging networks among local and international businesses.
The 26th Addis Chamber International trade fair is one of the mega events to be held from 22 to
26, February 2024.Having the theme “Spurring Development through Innovation”, the 26th Addis
Chamber International Trade Fair, is one of the highly awaited trade shows to be held in few weeks
of time.
Preparation is also underway to host this grand event that will be expected to attract numerous exhibitors
and actors. The event that will be held at the splendid Addis Ababa Exhibition & Development Center
is expected to bring together all business sectors such as manufacturing, agro industries, service and
the likes to connect and network.
The event that is open for local and international exhibitors are also intends to host symposium as well
as match making platforms for potential joint venture businesses and investments.
THE SERVICE WE OFFER INCLUDE: CONTACT US
Head Office: Dembel City Center 2nd and 11th Floor
• Motor Insurance Bole road Africa avenue
• Property Insurance
• Marine Insurance Tel. 011-552 81 95/96, 011-553 5129-32
• Engineering Insurance 011-554 37 05, 011-552 0475
• Legal Liability Insurance Fax. 011-552 81 93
• Pecuniary Insurance
• Travel Health Insurance Life Insurance Department
• Life Insurance Tel. 011-552 7581, 0911 62 4772
P.O. Box 285 Addis Ababa, Ethiopia
E-mal. nibinsgm@ethionet.et
www.nibinsuranceethiopia.com
 2

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ADDIS BUSINESS DECEMBER 2023

Editorial
Embracing Environmental, Social & Governance (ESG)
Addis Ababa Chamber Standards for Competitiveness
of Commerce & Sectoral Embracing Environmental, social, and governance (ESG) has become the latest trend to do business
sustainably. ESG refers to a set of standards for a company’s behavior used by socially conscious

Associations Monthly investors to screen potential investments and business. Environmental criteria consider how a
company safeguards the environment, including corporate policies addressing climate change and
the likes. This one is particularly important in today’s world where the impacts of climate change are
Newspaper vividly observed among societies. Similarly social criteria examine how it manages relationships
with employees, suppliers, customers, and the communities where it operates. Governance deals
with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.

ADDIS BUSINESS
DECEMBER 2023
Editor-in-Chief
Ashenafi Mitiku
Designer
zgirmamecha@gmail.com
Coloumnists
Israel Manaye
Yidnekachew Alemayehu
Ashenafi Mitiku
Senait Eshetu
Editorial Board
Zekarias Assefa - Chair
Kassahun Mamo - Member
Ashenfi Mitiku - Member
Seyoum Chane- Member
In a country like Ethiopia where there exists immense potentials and opportunities to grow,
incorporating ESG standards among companies and businesses is a must and in this regard Addis
Chamber strongly urges its business members to adhere to the principles of ESG. This is also due to
the fact that contemporary investors specially in developed states prefers to do business with those
companies who obeys to the principles of ESG otherwise they shift away their investment ideas to
other places where ESG is practiced.
In a country like Ethiopia that has introduced capital market in recent periods, embracing
and promoting the ideas and themes of ESG among business communities shall not be left for
tomorrow. Since present day investors are also increasingly informing the investment choices of
large institutional investors such as public pension funds. ESG investing is sometimes referred to
as sustainable investing, responsible investing, impact investing, or socially responsible investing
(SRI).
On the other hand Environmental issues of ESG may include corporate climate policies, energy use,
waste, pollution, natural resource conservation, and treatment of animals. ESG considerations can
also help evaluate any environmental risks a company might face and how the company is managing
those risks to protect communities and ecosystem from the adverse effects of environmental crisis.
Thus it is essential for business communities or companies to consider the potential impacts of
greenhouse gas emissions, solid and liquid waste, management of toxic waste, and compliance with
environmental regulations.
ESG also deals with social or human aspect regarding handling of businesses and industrial
sustainability. Likewise it looks at the company’s relationships with internal and external
stakeholders. Thus it often asks for questions such as does the business or company hold suppliers to
its own ESG standards? Does the company donate a percentage of its profits to the local community
or encourage employees to perform volunteer work there? Do workplace conditions reflect a high
regard for employees’ health and safety? Or does the company take unethical advantage of its
customers and the likes.
The other standard of ESG is the governance issue that is expected to ensure a company uses accurate
and transparent accounting methods, pursues integrity and diversity in selecting its leadership, and
is accountable to shareholders.

Thus Addis Chamber strongly urges its members and the entire business communities to strictly
adhere to the standards of ESG for environmental & business sustainability.

TEL. 011-5518055 | 011-5519713

011-5155221
Fax. 011-5511479 P.O.BoX. 2458
 3

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ADDIS BUSINESS DECEMBER 2023
NEWS

Addis Chamber Donates Food items to Destitute

acts of CSR differ from supporting kinds of interventions are part
internally displaced people (IDPs) and parcel of CSR that has been
to destitute households residing in persisted for long. She however
urban. underlined that long term solution
is key change the living conditions
As part of the continuation of this of the destitute and meanwhile
effort, Addis Chamber during disclosed the interest of Addis
the eve of Ethiopian Christmas Chamber to work closely with
has donated food items to such Kirkos Sub city and to address the
disadvantages people and people needy ones sustainably.
with disabilities at Kirkos Subcity
Wereda 5. During the food handing over
ceremony, an official from Kirkos
While handing over the food Subcity extends his gratitude to
items to such families, Mesenbet Addis Chamber on behalf of the
Shenkute, President of Addis residents of Kirkos subcity and
By Staff Reporter promoting business and investment, Chamber, said the donation is expressed the readiness of his
Addis Chamber discharges its intended reach out the needy ones administration to find sustainable
(Addis Chamber January 08, 2024) corporate social responsibility and to feel them delighted during solution for the impoverished ones.
Apart from its regular activities of (CSR) since a while ago. Such Christmas. She also said that such

Chamber Trains its Members on Digital Marketing

, it is important that they properly
take in account of values, culture,
gender, religion and other norms of
their target group, Hanna added.

Local companies need to stand

competitive in the volatile global
market through efficient use of e-mail
campaign, social media plat forms
and building engaging websites
among others . Locally, digital
marketing is getting poplar as many
individuals and companies market
their services and goods using social
media such as FaceBook, Telegram,
etc. The introduction of electronic
payments, various financial services
by local banks is encouraging
moves towards entering the digital
business world, said Micahel Bekele,
another trainer. Policy steps taken by
the government such as formulating
laws and directives in relation of the
By Yidnekachew Alemayehu and suppliers have now largely concluded electronically without digital marketing, such as electronic
inclined to conduct business through physical presence of suppliers and signature, e-receipt, business
The training was intended to help electronic means than the old and buyers, said Hanna Gebeyehu, a registration, licensing and renewal
member companies get familiarized conventional ways. digital marketing consultant. While are encouraging developments. He
with the latest techniques, conducting business, both buyers however, believes the country’s
instruments and ethical values while Digital marketing is therefore and sellers have follow globally level of digital marketing is not to
conducting business in a digital more than promoting and accepted rules such as respecting the satisfaction as compared to other
platform. advertising. It largely the sum the rights and privileges of other countries. Therefore, the government
of all business activities geared parties, respect the principles of fair has to take the matter seriously and
Nowadays, it has become imperative towards concluding transactions competition, observe ethical values closely work with the private sector
for business persons to do business between buyers and sellers. Digital and standards of modern business to improve the digital business
through electronic platforms at the marketing is a modern electronic conduct. For companies, before ecosystem, he recommended.
global market stage. Both buyers business model, where deals are entering the global digital market

ADDIS BUSINESS DECEMBER 2023
A closing workshop that calls for Shaping Africa’s Future Cities
held in Addis Ababa
By Ashenafi Mitiku
(Addis Chamber, January 12,
2024): The African Cities
Research Consortium (ACRC) is a
collaborative research programme
seeking to tackle complex urban
development challenges in the
continents rapidly changing cities.
ACRC intends to generate robust
insight and evidence that will help
to improve the living conditions
and urban services for all city
residents, especially disadvantages
communities.
ACRCs research integrates political
settlements thinking with city systems
analysis to understand the dynamics
underpinning infrastructure
and service challenges in cities.
Targeted analysis of specific urban
development domains provides
deeper insights in to how sectoral
shortcomings can be overcome and
residents’ needs addressed.
Addis Ababa is one of 12 African
NEWS
cities in which ACRC is engaging
community organizations,
researchers, key state actors and
non-state agencies, to co-produce
knowledge and evidence to advance
urban transformation.
As part of this program a final
workshop was held in the capital
Addis Ababa with the theme
“Working Together for Urban
Progress”. Embracing key
stakeholders, the daylong workshop
discussed on key areas of housing,
youth and structural transformation
domains.
FSS, the leading think tank
organization in Africa jointly with the
African Cities Research Consortium
(ACRC), conducted the workshop
that also aims to gather valuable
input from key stakeholders.
The workshop kicked off with brief
introduction of the project that was
followed by presentation by teams
of researchers and discussed among
participants of the workshop. The
workshop also highlighted on key
messages and way forward for future
engagements and interventions.
Some of these include many
programs in African cities are siloes
so fail to address the complexity of
urban development challenges thus
ACRC to emphasize on a holistic
approach by integrating systems
thinking with political and domain
studies to support unrab reform
efforts.
It is also said that the urban poor
cannot afford some services in the
city and as a result resort to informal
providers such as informal water
providers in the case of water or
resort to alternatives such as walking
in the case of transport.
Regarding the housing domain the
workshop highlighted on the need to
develop policy, legal and institutional
frameworks that accommodate
informal governance arrangements
in the housing domain as well as
underlined the need to unpack the
4
PAGE
PPP model and its implementation
in housing in order to maximize
its potential to sustainably address
the housing needs of low income
households in the city.
Regarding the youth domain the
panel has highlighted about the
informal labor market in which the
youth engaged is seen as a source
of political and security threats
since it is not totally governed by
the bureaucratic and administrative
powers of the city and the panel
also suggested policy ideas practices
are fragmented as manifested in the
contradictions of the government’s
approach to defining the household
within Ethiopia and other parts of
the world.
As a way forward the workshop
emphasized the need to undertake
action research and joint collaboration
between city administration and
research organizations to create
better cities and societies.
 54

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ADDIS BUSINESS DECEMBER
SEPTEMBER2023
2022 Advertisment
 6

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ADDIS BUSINESS DECEMBER 2023

New research calls for spice exporters to adhere to the

stringent EU Market

By Ashenafi Mitiku support of GIZ and Sequa is intended market in the world, worth of 29 forwarded their opinions and
to address the multiple challenges billion USD, where most of the spice comments concerning how to
(Addis Chamber January 4, of agricultural value chains that product is entering the EU market improve the quality of spice product
2024): Endowed with rich agro impedes export competitiveness of from developing nations such as in Ethiopia that are destined to the
ecology, Ethiopia is one of the few Ethiopia in the global market, said India, China, Vietnam and Brazil EU and local market. Some of these
countries to grow spice products yet Seyoum Chane , Deputy Secretary among the few to cite. include the need for integrated
the country is unable to fully unleash General from Addis Chamber. approach to promote the quality of
its spice potential for various factors, The dynamic and fast growing spice products, financial constraints
a latest study reports. According The panel, hosted by Addis food and beverage industries in facing exporters, the need to regulate
to the study, spice is produced in Chamber, has brought together Europe coupled with high interest food fraud, raising the awareness of
Ethiopia dominantly by small holder various stakeholders to deal with for organic food products are major product branding and the likes.
farmers and likewise the product is the spice sector, opportunities and driving factors for such countries to
consumed locally up to 90 percent. challenges and the way forward. eye on high quality spice products. Reviewing the impacts of existing
While presenting the new report, it policies, laws and regulations
The research also uncovers the was disclosed that Ethiopia’s export However the study calls on local and their impact towards spice
exiting policy provisions, strategic volume is less than one percent spice exporters to adhere to the production and promotion is key
plans including the latest spice despite immense potential the stringent European market standards to attain the intended result in the
quality control regulations of 2023, country possesses. and regulations on food. The study sector, the panel further discloses.
yet much remains to be done to lift also urges exporters to ensure According to panelists, a decade ago
out the spice sector from quagmire The new study also depicts the sustainability of production along the Ethiopia had been among the few
and to improve the quality of spice untapped European spice market that entire value chain and to avoid food ginger exporting countries in Africa
produced in the country. is growing steadfast with 3 percent fraud, to ensure product labeling, and in 2011 the country exported
The new study commissioned by per annum. The EU, according to the organic certification and the likes. ginger to the European market worth
Addis Chamber with financial study, has become the largest spice Discussants of the session also of 33 million USD.

ECA’s Economic Report on Africa/ERA 2023: Building Africa’s

Resilience to Global Economic Shocks
Abuja, Nigeria, December, to Global Economic Shocks”, the decline in real GDP growth, eroding the livelihoods of millions of people
2023(ECA) -Climate-induced report shows that climate shocks the benefits from positive shocks, that mainly rely on agriculture and
catastrophic events have led to generally are highly correlated with such as commodity price booms, and small businesses. Droughts, floods,
severe humanitarian crises in Africa. the cyclical component of GDP amplifying the impact of negative frosts, and other natural events that
Between 2000 and 2022, a total of growth and not with the long-term shocks. In addition, preliminary lead to crop failure affect the welfare
407.5 million people in Africa were trend in Africa, which suggests results of the report show that of households that live in rural areas
affected by natural disasters. During that part of the volatility observed the frequency of natural disasters and small towns. A one unit increase
this time, 4.2 million people became in growth emanates from climate- increases public debt levels directly. in natural disaster frequency
homeless, 53,610 people died and induced shocks. A temperature A unit increase in natural disasters would increase the percentage of
52,205 were injured. increases beyond a threshold of 0.7 could lead to a 0.25 percentage point households living in extreme poverty
degree centigrade results in reduced increase in the ratio of net public by 4.4 percentage, says the report.
This is according to the Economic real GDP growth. At 1.8-degree debt to GDP.
Report on Africa 2023 (ERA2023) centigrade change in temperature, The report carries important lessons
which will be launched on December which is expected to prevail by More significantly, climate change regarding how African countries
18, 2023, in Abuja, Nigeria. 2030, if current trends persist, we in Africa tends to derail poverty must incorporate climate change in
Titled: “Building Africa’s Resilience could expect a 2-percentage point reduction and, in some cases, destroy the design and implementation of
Continued to pg 9

ADDIS BUSINESS DECEMBER 2023
Impacts of Currency Devaluation in Private Sector
By Etsubdink Sileshi(PhD)
People have traded mainly goods
for millennia (service sector as big
chunk of the economy is recent
development). Both domestic and
international trades were conducted
either by bartering or using
commodity money such as gold or
silver coins (Example: gold coins
during the Axumite period, silver
and Amole during 18th to 19th
Century Ethiopia, were among the
media of transaction). Since silver
and gold coins can be measured in
weight and in purity, the degree of
acceptability of a foreign coin was
not as problematic as paper currency
or (fiat money). With emergence
of the industrial revolution, the
expansion of trade in the 18th and
19th century’s exchange rate systems
started to take the modern form.
However, due to the gold standard
(paper currencies backed by gold
reserve), exchange rates were mostly
stable and predictable in the late 19th
and most of the 20th century( except
a few periods when countries went
off the gold standard).
Exchange rate related volatility
became a regular phenomenon after
the US dollar stopped being back by
gold (during Nixon administration
early 1970s). Since then many
currency related crises have taken
place. These days, the financial
market, and especially the forex
market is one of the most closely
watched markets by businesses,
policy makers, individuals and
multilateral institutions. The
criticality of the forex market
becomes even more pronounced
in developing countries which are
prone for large and protracted trade
deficit and subsequently foreign
debt.
7
PAGE
the more elastic it will be -the fall This makes planning very difficult
in export prices due to devaluation for the private sector-particularly to
encourages foreigners to buy our those whose operation requires the
goods and services. Similarly, the heavy-usage of a foreign currency.
elasticity of imports are different for Moreover, since there occurs
different goods. external trade imbalance (imports
Theory and empirical evidences exceeding exports in our case), the
show that devaluation helps rectify government or businesses themselves
trade imbalance in industrialized may resort in to foreign loan. While
countries. This will even take time securing foreign currency through
to see the effect of the exchange rate debt may solve liquidity problems
policy (devaluation)- j-curve effect( in the short term, the debt servicing
trade balance deteriorates right after phase drains resources which may
What really is currency devaluation? the devaluation. Then, it recovers and force the government to increase
The value of a given country’s eventually goes to surplus.). In any taxes on businesses. The increase in
currency in terms others fluctuates case devaluation affects businesses. taxes reduces consumer demand and
for two reasons. First, due to the thereby businesses’ profitability.
market forces of supply and demand. How does devaluation of a currency
Like goods and services in their affect the private sector in Ethiopia? What about the positive effects
respective markets, currencies are There are various channels via of birr devaluation? When the
also supplied and demanded in forex which the business community gains level of economic development
market (exporters are supplied with benefits and incurs costs. Let’s is higher (say the industry
foreign currency while importers begin with the costs. The first impact dominates agriculture), devaluation
demand foreign currency. Inbound is through increase in the price of makes Ethiopian exporters price
tourists demand birr while outbound imported goods and services. This is competitive in the international
tourists demand a foreign currency; due to the fact that devaluation of birr market. Although export goods and
Ethiopians investing abroad supply (or any domestic currency anywhere) services become cheaper after the
birr and demand dollar or other makes foreign currencies more policy, the gain in volume of exports
currencies in exchange…). When expensive. So now, businesses which (effect) overcompensate the price
the demand for a particular currency are directly engaged in importing effect. However, given the current
rises, it is said to be currency goods and those who in some way state of the Ethiopian economy,
appreciation vis-a-vis depreciation. or another use foreign goods and the export sector is less diversified
services for their business operations and mostly commodity based (not
Second, the value of currency may have to face rising costs. Of course high level industrial outputs). In
change due to deliberate policy action. part of this burden is transferred to addition, the nature of export items
The change can be an increase in the the consumers. However, the degree necessitates longer time to expand
value of a currency- revaluation or a to which consumers shoulder the their production and benefit from the
weakening of currency devaluation. rise in the price of imported goods volume effect of birr devaluation is
Fixed exchange rate is a variety of due to birr devaluation depends on less likely to be gained. Even for the
these two (central banks deciding the the elasticity of demand for foreign industrialized countries, devaluation
number of units of domestic currency goods( by how do consumers reduce will not automatically correct their
required to purchase a unit of foreign their demand for foreign goods trade deficit. There goes sometime
currency. And the fixed rate stays for when their prices rise by 1%). due to adjustment in the export and
a considerable period). Devaluation import sectors (so trade balance may
is the most common policy in The second negative impact of deteriorate in the short run).
developing countries’ central banks devaluation, in developing countries
even though its impact for the public such as Ethiopia, comes through To sum up, currency devaluation
and private sectors is highly debated. shortage of foreign currencies (as in countries like Ethiopia where
exports have become cheaper, say in the economy has less industrial
Where and when does devaluation dollar terms, following devaluation. base and the main export source is
work? Let’s make one concept And if the rise in the volume of agriculture, devaluation is expected
clear -first. It is elasticity- the exports doesn’t compensate for the to deteriorate trade balance due to
responsiveness of an outcome to a fall in the price of export goods, forex the inelastic nature of exports and
change in a factor ( e.g if the price earnings decline). This shortage will imports. Thus, such efforts without
of coffee increases by 100% by how manifest itself in three ways. One proper structural transformation of
much percent does your demand for way is delay in the processing of LCs the economy are doomed to fail in
coffee change? May by 50% or 100% by banks. Another way, businesses achieving objectives. Especially the
or 120%.This is price elasticity of receive less forex than they request private sector will suffer in various
demand for coffee. Imported and (quota allocation). One last way ways.
exported goods too have elasticity.). may be the subsequent rise in the
The elasticity of exports is different exchange rate of the parallel market.
for different goods. Generally the The third cost to businesses comes in
more processed an export good is, the form of forex market instability.

ADDIS BUSINESS DECEMBER 2023
By Ashenafi Mitiku
Agriculture is the most important
sector in Ethiopia that it accounts
for 29.3% of GDP, 72% of export
value, provides 65% of employment.
It is also a means of generating
livelihood for about 83% of the rural
population (ATA, 2017). The sector
still remains largely dominated
by rain-fed subsistence farming
by smallholders who cultivate an
average land holding of less than
a hectare. Although agriculture
has a long history in the country’s
economy, development of the sector
has been hampered by a range of
constraints which include land
degradation, low technological
inputs, weak institutions, and lack of
appropriate and effective agricultural
policies and strategies.
Horticultural crops such as fruits
and vegetables in the country are
produced mostly by smallholder
private peasants in small patches
of lands using traditional farming
practices where no improved
varieties, fertilizers, chemicals and
other inputs are used. The areas
allocated for the production of
fruits and vegetables are also very
small. Thus, the production and
productivity of fruits and vegetables
in the country level is very low.
Currently, very few commercial
farms are participated in the
production of fruits and vegetables
in the country mostly to Oromia and
SNNP states.
The country has different agro-
ecology, fertile soil and suitable
policies and strategies for the
development of the horticulture
subsector of agriculture. Both
tropical, subtropical and temperate
crops of horticultural crops can
be grown in different parts of the
8
PAGE
Unleashing the potential of lemon
farming practice and marketing that can be addressed to make
systems of lemon crop. In order to the country lemon product to be
bolster market competitiveness of promoted. The biggest opportunity
the lemon crop, it is imperative that lies in the export horizon, which
policies to ensure distribution of if tapped can be a good source of
improved seed to enhance the value export and revenue diversification
chain and value addition of the crop. for the country.
In order to create a sustainable
lemon production and market The study on lemon also suggests
linkage among producers and actors that as long as lemon growers are
in the value chains, the latest study largely small holder rural farmers, it
on lemon recommended that all is essential to provide the market led
stakeholders at all level should opportunities like crop management,
work together on extension and providing improved Varieties of
capacity building on lemon crop, lemon seedling, improving quality of
contract farming schemes, lemon the fruit, adding more value through
marketing center for producers, processing will develop and expand
export destination diversification the production and marketing of
country. Besides, the country has and improvement strategies. lemon sustainably in the country and
tremendous surface irrigation water regional boarder countries.
potential which is estimated to be 122 Strengthening the existing
billion cubic meters (EHPEA, 2013). multipurpose cooperatives to The study also pinpointed the
The underground water potential engage in the lemon value chains export potentials of lemon
of the country is estimated to be 40 and establishing the new farmers’ from Ethiopia thus the need for
billion M3. The water potential of cooperatives is the other possible developing the quality management
the country is enough to develop intervention that can take the roles practices, improving supply chains,
10 million hectares of irrigable of linking producers and potential establishing certification scheme
land however until now only 1% of buyers nationally and internationally. and reducing post-harvest losses are
the water potential is used for crop Moreover, they may involve in agro- key to enhance the performance of
production (EIA, 2012). processing and other value adding export in different parts of the world.
activities which is at infant stage in
This piece of writing tries to look the country. It is also suggested that supporting and
at the potential, opportunities and strengthening the competitiveness
challenges of lemon production in Beside the cooperatives/unions of local produce and building local
Ethiopia. Lemon product is largely as intermediaries are expected to brands, quality standards and quality
produced by large number of small collect lemon products directly from management, cooperation among
producers dispersed in various smallholder farmers and then sell farmers organizing them as cluster-
regions with diverse products products by looking for potential based cooperatives to promote high
of heterogeneous quality. In the markets, up to the central markets, safety and quality standards for
recent past, an emerging trend of Addis Ababa and other countries. improved supply of lemon.
globalization has transformed Based on discussion made with In addition to these, the study calls
marketing system in which supply relevant stakeholders at all level on the need to support farmers and
chain management and value chain it was revealed that fragmented enhancing marketing practices and
analysis (VCA) had become key production of local variety lemon is logistics: to set up own product
business processes. one of the major weaknesses which consolidation and standardization
contribute less volume of products (and transport logistics) sorting,
The recent study commissioned to the market. grading, and packaging equipment
by Addis Chamber revealed that and practices.
use of local lemon variety and The study commissioned by
traditional farming practices Addis Chamber has also put Introducing better varieties of
dominated the sector. The study its recommendations for better seeds, fertilizers and extension
finds out that limiting factors to the production of lemon in Ethiopia. services to the farmers to ensure
lemon value chain performance to Some of these recommendations high productivity is key to enhance
include limited supply of improved include the need for lemon grower productivity, suggests the study.
lemon .variety, use of unimproved association to be organized so that In order to support farmers from
production practices, poor post- inefficient production, post-harvest lemon production , providing proper
harvest management and limited losses, low grade lemon, poor disease warehouse is expected to stabilize
value addition of the crop, lack of control, lack of input utilization the price of lemon market.
extension and capacity building for soil nutrient management and Finally the latest study of Addis
specific to the crop, limited access to inefficient supply and market chains Chamber calls on the development of
credit service for the production and are will be resolved. marketing strategy and encouraging
marketing of the crop, fragmented private sector to involve in the
and traditional production system, It was found that lemon value chains production of lemon in commercial
low volume of product to enhance can be majorly unprocessed for both and mechanized manner.
value chain. The major weaknesses local markets and export market
within the value chain were linked mostly used for juice extraction and
with low focus on extension and salad houses consumption. There are
capacity building to enhance the some challenges and opportunities

ADDIS BUSINESS DECEMBER 2023
Continued from 6
their long-term growth strategies.
The report calls among other
for a development strategy for
countries that “leverage their
natural resource endowments in a
manner that stimulates economic
growth while gradually reducing
the intensity of carbonization
associated with economic activity,
especially production, transport
and consumption”. This requires
ECA’s Economic Report on Africa...
embracing green industrial
policy at the core of the design
and implementation of national
development strategy.
To finance this sustainability
transitions, the report recommends
the issuance of green and blue
bonds which can exclusively direct
financing to projects with climate
and environmental outcomes aligned
with Sustainable Development
Goals (SDGs). The debt-for-
nature swaps envisage climate and
nature transactions with positive
environmental impacts and can
also contribute to Africa’s debt
sustainability and provide countries
with additional fiscal space to invest
in climate resilience and adaptation
actions. The development of a
mechanism which would facilitate
debt buybacks and re-issuance at
9
PAGE
cheaper rates would be a key factor
in allowing countries to sustainably
restructure expensive existing debts
and enable investment of savings in
climate resilience.
Currently, ECA supports the
operationalization of the Sustainable
Debt Coalition initiative, which
upholds these financing mechanisms
to assist in addressing Africa’s debt
management challenges.