Walking along the street of any low-income settlement in anywhere in the world, one is thumped by the apparent contrast of dwelling and habitat. On one side of the street is a decrepit, single story, windowless house of tin sheets and open drains; across the street is a fine two-storied brick and concrete house with glass windows, paneled doors, and painted walls. While there are many reasons for such disparity, one variable that repeatedly surfaces as a common denominator is the accessibility to different sources and types of credit.
Henok Assefa on June 24, 2010
Any serious economist worth his salt would tell you that the arguments for free trade in general are beyond compelling. While free trade in theory is not questioned as much, what is questioned is in fact its practical implementation. The World Trade Organization (WTO) is the main organization promoting a freer world trade among other entities. Ethiopia is currently an observer with the WTO but the country has applied for membership and is in the process of negotiations.
Yohannes Assefa on June 09, 2010
A recent International Monetary Fund report identified Ethiopia as one of the fastest growing non-oil based economies in Africa, growing by double digits over the past six consecutively years. While Ethiopia’s economy is mostly agrarian, the recent expansion of the country’s middle class and urban population and its per capita income has made the country ripe for international franchising businesses, especially those involved in the consumer retail business. Yet, with the exception of few major international franchisors, few have shown interest in Ethiopia’s up and coming franchise market. The lack of interest from international franchisors in Ethiopia has led to the copying and misappropriation of well known and established brands in the local market. It is inevitable that at some point that some of the major international franchisors will enter the Ethiopian market as the franchise market further matures. Invariable, however, the current lack of interest or active protection of goodwill and intellectual property by the part of international franchisors will complicate any future entry. Hence, it is important for international franchisors to understand the current legal and regulatory environment in Ethiopia for operating an international franchise.