Regional and Local Development Studies

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Assessment of Employability of TVET graduates: the case of graduates of two TVET Colleges in Addis Ababa
(Addis Ababa University, 2022-05) Samuel Atalel; Kumela Gudeta (PhD)
The objective of this study was to assess the employment status of TVET graduates in Addis Ababa and how the employers see the strengths and weaknesses on the program in terms of Knowledge, Skill and Attitude. Education in general and TVET education specifically, is one of the pathways towards a better urban decent life that encompasses the acquisition of important tools and competencies to demonstrate in the world of work. For many years, the role played by TVET has been overlooked due to mainly attitudinal and design of the system. Nowadays it‟s becoming more of related with development agenda comprised with employment opportunity, livelihood improvement and source of manufacturing industries. A sample of 257 graduates, 28 employing companies, 15 trainers‟ and 4 key informants were taken for the study. Primary data was collected by questionnaires and semi-structured interviews. Entoto and Misrak Polytechnic Colleges are the prominent TVET institutes in Addis Ababa and in Ethiopia at large. They have the highest enrollment and graduating centers with frequent work relationships with employers/industries. Qualitative and quantitative methods of analysis were used in this study. The interview responses obtained from the management bodies and interviews were analyzed qualitatively. Quantitative data collected was analyzed using SPSS expressed in frequencies and percentages and presented using tables and figures. According to the findings of this study 68.5% got employed mainly by private companies (48%). Also 70% of graduates employed in private sector followed by the government (14.8%). With 60% of employers are on the sector of manufacturing sector over 60% of them got knowledge, skill and attitude of graduates above good and very good. Also the research indicated that there are no huge gaps in those areas, the result of the study point out that the skills delivered by the colleges are not essentially and expectation based on the standard of the employers. 46.4% and 28.6% of employers believe that the competency of graduates is satisfactory and very satisfactory. But there are also 21.4% of companies who believe their competency is unsatisfactory. This creates, employers indicated, another resource wastage incurred by the employers to make graduates „complete‟. Also the study indicates that the core competency of trainee‟s is initially questioned during the cooperative training or internship period by which the trainees get more practical training inside the industries.
Factors Affecting Gender Equality and Women Representation in Leadership Position: The Case of Selected Banks in Addis Ababa
(Addis Ababa University, 2021-09) Martha Adefris; Filimon Hadaro (PhD)
The Banking Industry is the biggest financial institution in Ethiopia. In spite of the fact that the number of both female and male workers of the bank expanded over time, the participation and representation of women in leadership position is less than men. The purpose of the study is to figure out the major variables (individual, organizational and societal factors, representation and gender inequality of women in leadership position) that have impact on gender disparity. The study had utilized mixed method which is (quantitative and qualitative) investigative approaches. Primary data was gathered from 6(six) private and 1(one) governmental bank at Head office level. Human Resource (HR) directors and experts in number 169 were participated, out of 169, 7 where Human Resource Directors have been participated through organized survey to look at the variables (constraints). Moreover, 7 HR Directors from each bank were purposively chosen to explore the primary and secondary information. The collected information was analyzed using statistical tools of SPSS version 23. The finding shows that 54.3% of combined factor of individual, organizational and societal variables influence the representation of women in leadership position. Women’s interest in leadership position influenced by a combination of Individual, organizational and societal factors. In addition to above reasons, parenthood is other major barriers of women to come to leadership positions. Hence, to improve representation of women and gender inequality within the financial industry, the administrations can be committed to actualize in the agreed activity, mindfulness creation programs. Those programs can be useful to incorporate women participation.
Assessment of E-Service Practice and Quality from Users’ Perspectives in the Case of E-Service Platform, the Eservice.gov.et of Ethiopia
(Addis Ababa University, 2022-02-05) Robson Zelalem; Filmon Hadaro (PhD)
This research was conducted with a key objective of assessing and analyzing the e-service quality and practices and evaluating the change e-service has brought about on public service delivery from the evidence of selected federal organizations on e-service delivered @eservices.gov.et. To that end, the study employed a mixed research approach with sequential exploratory and concurrent triangulation research design. It began with collecting qualitative data gathered through four different observations accompanied by unstructured interviews with two key informants to explore the eservice practices followed by unrepresentative survey data collected from fifty users on their perception of the e-service quality based on the adopted D&M IS success model as well as validated on-site. Qualitative findings have revealed that apart from problems related to language and code acquisition the system is showing relative success for the selected organizations. This in another way has been manifested in the quantitative findings which have revealed that all the six variables were quite successful and validated the qualitative finding with relatively lesser results scored on components of information quality (86% completeness, 76% up to date and 92% comprehensibility) and system quality (usability 68%, adaptability 72%, availability scored 80% positive). While time factor, security concerns and convenience generally influence e-service usage, yet in the case of this research security concern was not a point of concern for the users. Adaptability, language barriers and non-automation of back-office processes were identified to be the major problems with the e-service system. Furthermore, the e-service practice showed that the system is only translating the paper process to electronic public service delivery and hence no automation per se of the back office process falling short of transformation. This implies that the eservice system did not achieve the vision of transforming public service delivery as envisaged in the e-government strategic plan 2020 in its current state. Based on this the research recommends among other things; the need for additional language on the portal, careful strategy to phase-out paper version, a body with clear mandate, responsibility, and diligence to coordinate and facilitate integration and interoperability of the e-services and more investment on key ICT infrastructures. Finally, future areas of study considering the context and realities of Ethiopia have been suggested.
Challenges of Micro and Small-Scale Enterprises in Adiss Ababa: In Case of Akaki Kality Sub-City
(Addis Ababa University, 2022-06) Hanna Tilaye; Teshome Tafesse (PhD)
Micro and Small-Scale Enterprises (MSE) are important in almost all developing economies in the world, which is characterized by unemployment, import dependency, and income distribution challenges. The study investigated evidence on the occurrence of challenges of Micro and small-scale enterprises, that were different from one place to another place from the survey of 170 sample data collected from three wederas. This study covered MSEs around Akaki Kality Sub-city area in Addis Ababa. The study was confined to the service and manufacturing provision of Akaki Kality MSEs sectors, using mixed methods research. On top of that, the study area was chosen because of its better center of industrial business activities in the capital city. The general objective of this study was to assess the Challenges of micro and small scale enterprises in the case of Akaki kality sub-city, Addis Ababa Ethiopia. The study employed both quantitative and qualitative data. Also, it was used descriptive and inferential statistics to assess the Challenges of a micro and small-scale enterprise. Furthermore, the major factors that affect the growth of MSEs are sufficient capital, adequate market, Customer attitudes; shortages of premises, quality of the product, shortage of raw materials, poor planning, and lack of sufficient capital were the major challenges of MSEs in Akaki Kality Subcity. From the study result researcher recommends that government bodies must give to advance providing financial access, and working premises, create an adequate market, reduce the interest rate and give awareness to the society that affects the growth of MSEs in the city.
Qualitative Analysis of Ethiopia’s Readiness to African Continental Free Trade Area (AfCFTA)
(Addis Ababa University, 2022-07) Ibsa Chemeda; Andualem Goshu (PhD)
The research paper analyzed Ethiopian readiness to AfCFTA, to conduct this study, qualitative approach was employed. A total of 33 respondents were selected and involved as sample respondents in the study. Semi structured interview technique and both primary and secondary data sources were used. The study used non probability sampling procedure specifically purposive sampling technique in undertaking this research. The collected data were analyzed by thematic analysis method. The findings of this study show SMEs in Ethiopia aren‘t ready to AfCFTA. Awareness wise, majority of the Small-to-Medium Enterprises haven‘t heard about the CFTA, the requirements to participate in it and have not received training about the CFTA. Institutions like AACCSA, ECCSA and MoTRI are not giving equal attention to SMEs as they give big businesses and corporations. The research found in trade facilitation aspect Ethiopia is ready for AfCFTA. Almost all requirements set by AfCFTA about trade facilitation are implemented or are in the project phase. The research also found Ethiopia is ready to AfCFTA in macroeconomic policies aspect, the plans government hasn‘t been finished yet and projects in initial stages are hope givers. In digitalization, supply chain, national studies for the CFTA, Foreign Direct Investment (FDI) and industrialization related macroeconomic activities: Ethiopia is doing well to be ready while infrastructure, private sector, and sub-committee related policies and actions need better focus to be ready for the CFTA. Recommendation and future studies are forwarded.
The Effect of Work Environment on Employee Performance: The Case of Beautifying Sheger Project
(Addis Ababa University, 2022-06) Endashaw Belachew; Teshome Tafesse (PhD)
The main objective of this study was to assess the effect of work environment on employee performance in the case of Beautifying Sheger Project. It also tried to examine the impact of physical work place environment aspects, reward aspects of the job, and training and development opportunities in the work place, work life balance on the performance of these employees. Quantitative research approach with explanatory research design was adopted in carrying out this research. A survey method was used to gather data from the employees, after questionnaire data were collected, percentage, frequency, mean and standard deviation were used as a tool for descriptive methodology as well as regression and correlation analysis was used from inferential statistics. Convenience sampling was used to select the specific individuals. The correlational results of this study showed that physical work place environment (r = .122), reward aspects of the work (r= .643) and work- life balance have been were positively and significantly related with performance of employees of Beautifying Sheger Project. The study also found working conditions are important factor of overall perceived performance of for employees of Beautifying Sheger Project. In addition, the regression model resulted that, 53.3% of variance in employees’ performance is due to work environment conditions (Physical work place environment, Reward aspects of the work, Training and development opportunities and Work- life balance). Moreover, it can be observed from the results of this study that working conditions correlation with performance of employees. This paper suggests the project managers to work towards improving working environment and building good relationships with their employees. This friendly and positive interaction of employees will craft innovative and creative staff.
Impact of Interventions by NGOs on Women Empowerment in Ethiopia: The case of ActionAid Interventions in Ilfeta and Semen Bench Districts
(Addis Ababa University, 2022-06) Dawit Eshete; Filmon Hadaro (PhD)
The study is basically designed to access the impact of women empowerment interventions by NGOs in the case of Action Aid Ethiopia in two different woredas which are Ilfeta from the Oromia region and Semen Bench from Southern people Nation and Nationalities of Ethiopia. In most cases, Ethiopian community culture is dominated by patriarchy which gives more opportunity and space to men rather than women. Power and opportunity of resources are compromised. Land and other resource management were mostly given to men while women had no resource ownership and decision-making power both at home and in public, especially in rural areas. Unpaid care is not well redistributed and considered valueless but women spend much of their time caring for the family. Therefore, most rural women in Ethiopia had no time to attend school, employment, or participation in social gatherings and other public events that makes them deprived of their rights. The research objective is to explore the impact of women empowerment from personal, social, economic, and political perspectives by applying both qualitative and quantitative research methods. A survey questionnaire is used for quantitative analysis whereas focus group discussion and key informant interviews are also used for qualitative data analysis. Survey of 288 was conducted on the targeted women and data was analysed and presented in different forms. XI The study reveals that Women empowerment intervention by non-Governmental organizations in Ethiopia is not able to bring holistic transformation. Women's Economic and political empowerment does not meet the desired empowerment level compared with that of social and personal empowerment. The study depicts that women's membership in saving and credit cooperatives is not adequate and micro-level business engagement for sustainable income sources is below the expected status. A political and legal right is found to be insignificant. The study finding indicates that weak institutional support from the government, population pressure, Harmful traditional practice, widow inheritance, and other factors contributed to low women's economic and political empowerment in the study area. The study forwarded recommendations to address women empowerment needs by non Governmental organizations and proposed strategic direction to address the women empowerment gap in Ethiopia
Households Multidimensional Poverty Analysis in Case of Urban Productive Safetynet Program Beneficeries in Addis Ababa City
(Addis Ababa University, 2021-12) Samuel Eshete; Kumela Gudeta (PhD)
Poverty alleviation is a priority area of intervention for government and non-government organizations including Sustainable development goal agenda. Although there is a difference in the characteristics and dimension of the problem, it can be found in both urban and rural areas. Establishing effective tools for indicators and poverty measurements are also important for a decision making. In addition to the traditional income poverty indicator, multidimensional poverty measurement became the new way of measuring poverty. This study covered the multidimensional poverty status of urban productive safety net beneficiaries in Addis Ketema and Kolfe Keraniyo subcities. The study employed cross-sectional method of research design and Mixed research method of data gathering and analysis methods. Explanatory sequential design method was utilised to collect & analysed the data. Household Survey, Key informant interview and observation were conducted to collect the relevant primary data and secondary data from the relevant organizations & respondents. A total of 270 respondents were randomly selected from the six woredas in the study area. Descriptive methods and binary logistic regression method was conducted to analyse the data. Alkire and foster method of Multidimensional poverty measurement method were deployed to assess the severity and deprivation status of the respondents. Hence, the severity level of poverty is around 25% and observed that the existence of high number of vulnerable households. And it also confirmed the result of OPHI on the existence of high number of vulnerabilities compared with other regions of the country. The MPI of the addis ketema and kolfe keraniyo found 14% and 12.7% respectively. On the other hand, although the program contributed on the improvement of income poverty status households, its impact on education, health and living standard of the beneficiaries were insignificant. On the deprivation status of the households education (36.4%) and Health (25.3%) were major contributors for multidimensional poverty of households. Economic factors such as unemployment and income variability including inflation were major determinant factors besides to multidimensional indicators. Therefore, from regression result it was noted that, household size, unemployed size, health status, housing ownership status, and person per room of the households were significant positive determinant and contributor while educational status is negative determinant for poverty status of the households respectively. The study recommends revising scale of program support of households which considers the economic context of the country and promoting similar poverty alleviation programs which works on human capital, health, improvement of living standard of household’s & job creation activities.
The Role of Life Style Incompatibility in Condo Housing Preference of Condo Owners among Slumdwellers in Addis Ababab: The Case of Lideta Condominium
(Addis Ababa University, 2021-09) Shemsu Kemal; Girma Semu (Ato)
Lack of affordable, standard housing in all urban areas in Ethiopia in general and Addis Ababa in particular, is one of the most pressing matters that called for immediate action. Consequently, the the defunct EPRDF government launched what it called „Integrated Housing Development Programme (IHDP)‟since 2006 aimimg to construct 400,000 low cost housing units targetting low and middle income citizens. Sofar, total of 1,859 condominium units were constructed and distributed in Lideta sub city (MUDHCo,2015). However majority of the condo winners either left their new condo residence or never moved in asper the expectations, rather rented it out to the better off and they remained slum dwellers. Therefore, this study intends to identify if the housing preferences of condo- winners slum -dwellers is influenced by in compatibilites in lifestyles at Lideta sub city, in Addis Ababa. The study employed lifestyle concept and measurement using housing AIOs (Activity, Interest and Opinion statements) to help determine lifestyle characterstics of condo-winners slumdwellers and their housing choice. It further examines socioeconomic influences in housing consumption preferences of the study participants. To this end, the researcher used quantitative and qualitative approach as a methodology to address the research questions. Data were collected through a semi-structured questionnaire distributed to 160 selected respondents, with 4 key informant interviews and a focus group discussion conducted at area of the study. The technique used to analyze data was frequency, percentage and crosstabulations along with Person Chi squares tests. The findings indicated that the housing preferences of condo lottery winners but slum dwellers appeared to have been adversely impacted by incompatiblity of lifestyle changes at Lideta condo dwellings. Due to socioeconomic constraints and limited upward mobility the commoning, primordial household activities and modes of living practiced at the kebele houses are largely maintained at the condo dwelling, and are unaccommodated at the site owing to lack of specific condo housing and community features. The long standing and highly regarded socio-cultural welfare systems such as Idire, Eqube, mahiber/Jemaat are either rarely or never practiced at the site, resulting in reduced social interaction at the condo dwelling. Thus, both sociocultural and economic constraints combined to to hinder lifestyle transitions of the condo lottery winners who remained slum dwellers. It is, therefore, suggested that pertinent government bodies and housing developers need to take steps to prioritize congruity in design interms of accommodating our commoning household activities, socio-cultural heritages to ensure smooth housing transition. It was also suggested that the city authorities, in collaboration with financial institutions, need to work out incomegenerating schemes to enhance socio-economic status of condo winners slum dwellers to help them afford the housing consumption
External Intervention in the Current Ethiopia-Sudan Border Dispute
(Addis Ababa University, 2022-07) Beyene Ejigu; Yeshitila Wondemeneh (PhD)
The border dispute between Ethiopia and Sudan was full of complication since the start of negotiation process for treaty making during Emperor Menilik II. Even if in 1972 both countries have agreed to re-demarcate the boundary upon reaching an amicable solution, till now they have not reached into any solution. Currently the Sudanese government has occupied the land which is under the effective control of Ethiopian administration. The main objective of this study is to assess the role of external interventions on the ongoing Ethiopia-Sudan border dispute. I used qualitative approach in this research. In addition to document analysis and researcher observation, the primary data was collected from respondents’ interviews that are selected from Ministry of Foreign Affairs and other relevant institutions. Major findings and conclusions of this study shows that Egypt is the main actor behind the current Ethiopia-Sudan border dispute either in relation to GERD stalemate or other geopolitical interest. In addition, some Western countries, Arab countries and emerging super powers from other parts of the world have been complicating the problem to advance their own national interest. As short term solution, diplomatic efforts should be made intensively until Sudan shows good faith to evacuate from the disputed territory for a fruitful discussion to be made. The government of Ethiopia should raise international awareness about the continuing provocative action of Sudan. As a long term solution, they should re-activate joint boundary mechanisms to finalize the remaining task of finding an amicable solution. In addition, economic cooperation& joint development programs should be applied to ease the tension.
The Role of Urban Agriculture on Women Empowerment in Addis Ababa: The Case of Vegetable, Dairy and Poultry Production Program Beneficiaries in Akaki Kality Sub City
(Addis Ababa University, 2021-06) Mitke Alemu; Filmon Hadaro (PhD)
Urban agriculture considered as a means of women empowerment and poverty alleviation specially minimizing food insecurity of urban poor. Thus this study is aimed to evaluate the role of urban agriculture in women empowerment considering political, social, economic and psychological dimensions among women engaged in urban farming at Akaki sub-city, Addis Ababa. Quantitative research design was mainly employed by complementing it with a qualitative approach to triangulate the findings. A total of 274 study subjects were selected for quantitative study and 14 key informants were selected for qualitative interview. Five dimensions and 10 indicators (5DE) were used to measure empowerment and multiple linear regressions were estimated to assess predictors of empowerment index. Thematic analysis was done for qualitative data and responses with similar ideas were summarised and discussed. The study finding revealed that women farmer in the study area empowered with 80% of empowerment proportion and 0.93 5DE scores. Control over autonomy in production, control over income, and decision on Purchase, sale, or transfer of assets were the three top contributing indicators for women empowerment. However, access to loans or credit was the least contributing indicator. Money-saving habits, years of stay in the activity, and women's education status were some of the factors which were positively linked with the empowerment of women. Based on the qualitative finding women are highly benefited from their participation in urban agriculture in terms of getting access to income, having a good social cohesion, and access to fresh food. Adequate land, waste disposal site, and inadequate support from governmental bodies, inadequate working land, and lack of finance were challenging situations for urban women farmers. Generally, urban farming highly contributes to women's empowerment therefore government should provide different support for women farmer to sustain women empowerment.
Analysis of the Performance of Exports and Competitive Advantage for Growth and Development in Ethiopa: The Case of Sesame Seed
(Addis Ababa University, 2021-11) Masresha Yimer; Andualem Goshu (PhD)
Based on the general objective of the research to describe and analyze the sesame seeds production, comparative advantage and export trade performance, competitiveness and export potentials of Ethiopia, from the perspective of the global and African regional levels, the study addressed four specific objectives, covering the period 1970 to 2018, by using market share, growth rate and related trade performance indicators, RCA and RSCA, export and import geographic concentration ratios analysis, econometric analysis using the ARDL model, and also carried out assessment of sesame seed export potential by utilizing UNCTAD export potential and gap methodology. For the ARDL econometric model post estimation diagnostic tests were also carried out. Africa’s share of world sesame seed export volume is about 65.5%, the leading exporters and their global export volume share are: Sudan (21.8%), Ethiopia (11.4%), followed by Nigeria (10.6%). Ethiopia’s RCA and RSCA have been higher though showing declines recently. Ethiopia’s leading export destination (61.9%) is China (also the world number one importer) and 20.4% to Israel (the world 6th importer of sesame seed). Ethiopia’s export concentration ratio was a high of 0.33, higher than the global average of 0.11; while the importer’s concentration ratio of the leading importing country, China, was 0.18, indicative of higher number of supplying countries, and implying higher competition in exporting to China. The ARDL econometric model analysis revealed that in both the short run and the long run, EXVAL (sesame export value) and EXVOL (sesame export volume) are affected statistically significantly by GDPeth (positively), REER (negatively), IMPDD (negatively). On elasticity results, both equation 1 (EXVAL) and equation 2 (EXVOL) are highly elastic to three of the four independent variables, namely, GDPeth, REER and IMPDD, both in the short and long run. Regarding Pairwise Granger Causality Test results, while both EXVAL and EXVOL does granger cause GDPeth, reinforcing the importance of export development as engine of economic growth, EXPPPRATIO granger cause EXVAL as well as EXVOL. Besides, EXVAL as well as EXVOL have bi directional causality with REER. Regarding the export potentials, Ethiopia has huge untapped export potential in sesame seeds, with current export to total world potential percentage share at 32.7% - an export untapped potential of 67.3%. Finally, towards maintaining and improving the comparative advantage & boosting the competitiveness of sesame seeds export, the study recommends: expanding sesame seed of production; improving product quality and value additions and the domestic marketing system (including ECX trading system); pursuing export market and product development and diversification; streamlining trade logistical and other domestic cost push factors; addressing the misalignment in exchange rate and the appreciating REER; developing and maintaining highly professional exporter companies, by implementing the identified respective strategies for action.
The Implications of Fractious Central and Sub-National Governments’ Relations for Ethiopia’s Decentralized Federation: The Case of Tigray-Federal Feud
(Addis Ababa University, 2021-11) Brook Abdu; Yeshtila Wondimeneh (PhD)
One of the major political developments the country witnessed since the reform government of Prime Minister Abiy Ahmed took power was different parties governing at the center and regional level. Since disagreeing with the merger of the EPRDF and the formation of the Prosperity Party, the TPLF was minimized from central power and went on administering Tigray region; losing its dominance in the country’s central politics. This happened for the first time since the formation of the federation as a result of the constitution enacted in 1995. This trend in the federation resulted in a feud between the state of Tigray and the federal government to later get intensified by different factors such as the postponement of the sixth general elections, the conduct of a regional election in Tigray, as well as the formation of the Boundaries and Identities Commission and Reconciliation Commission at the federal level. This research found out that the root causes of the feud between the two sides were the disagreements in the manner the EPRDF was merged and the Prosperity Party emerged, the power struggle and the sixth general elections, the mishandling of the national reform agenda mainly manifested in the lack of institutionalization of the Eritrean peace deal as well as the resentment from the TPLF side because of blames for all faults during the EPRDF era and mishaps afterwards during the reform period. This feud is destined to affect the center and region relations in the federation as well as lead to a reexamination of the party-state relations in the country. The departure in the narrative of the reform government to move away from the TPLF era marriage of state and party affairs, the promises to deliver this are expected to be acted up on. But this remains pretty much the same and would likely continue to be the same given the results of the sixth general elections. On the other hand, the administration’s commitments to bring about real federalism shifting from the legacy of centralized system through party discipline, the center-region relations in the federation are expected to be rules based and balanced fitting the constitutional stipulation. However, the strong military buildup in the regions as well as the tendency of centralization by the federal government could affect the realization of this aspiration. The study concluded that, the feud with the TPLF will have an impact on the two factors and the remaining sub-national entities could take lessons to challenge the federal government which in some instances threaten the national unity and fate of the federation itself
The Race to the Bottom in Labor Standards: A Critical Perspective on the Flow of Foreign Direct Investment in the Ethiopian Textile and Apparel Industrial Parks
(Addis Ababa University, 2020-02) Gifawosen Markos; Andualem Goshu (PhD)
In an attempt to attract Foreign Direct Investment and gain access to the western markets, developing countries most often compete with each other. Due to this competition, nations put downward pressure on wages and working conditions leading to a phenomenon called the race to the bottom. This research aims to explore the effect of labor standards in the flow of FDI in the textile and apparel industries in Ethiopia with a particular focus on the Bole-Lemi Industrial Park and a flagship Hawassa Industrial Park. The study employed a qualitative research design. For the practical investigation of the research questions, data were collected from both primary (through a Key informant semi-structured interview) and secondary sources and analyzed through the theoretical lens of the race-to-the-bottom thesis. The research has found out that the core labour standards are being violated in the Hawasa and Bole-Lemi industrial parks where by none of the industries in the parks have the basic labor Unions and the workers are not able to exercise their rights of collective bargaining and the right to strike. Concerning conditions at work, it is found out that the workers are laboring under poor conditions, among other things, an unpaid or forced over times, off –the clock jobs and verbal abuses as well as offered poor quality food. Moreover, although it is believed to be in accordance with the workers productivity, Ethiopian workers are being paid a meager wage of $26 per month in the industrial parks. With this, they are the least paid workers compared to any of the countries producing textile and apparel for the international market. This study identified that the the low implementation of national labor laws, the impotence of top level trade unions and absence of minimum wage policy in the country has subjected the workers to grave exploitation in a way that does not represent their human dignity. This, in turn, is paving the way for profit seeking companies to invest in the country and causing a race to the bottom in labor standards in the Ethiopian textile industries. As a result of these dynamics, poor jobs are becoming the rule of the game in the country. In the end, the research has suggested that the state must strive to reconcile the effort to attract investment with the standard of jobs generated in its industrial parks through setting a wage structure that could still preserve the country's competitive advantage while practically applying labor regulations in the industrial parks.
Analysis of Malt Barley Value Chain Finance: A Case of Lemu Bilbilo District, Arsi Zone.
(Addis Ababa University, 2022-12) Jemal Abdo; MuluAdam Alemu (PhD)
Ethiopia is the second largest barley producer in Africa next to Morocco. Financial constraints in agriculture specifically in malt barley value chain remains outward and agricultural finance are costly and inequitably distributed, limiting producers’ ability to use quality input, use machinery to produce more. The purpose of the study was to analyze malt barley value chain and determinants of malt barley value chain finance. To comprehend the objectives, data were collected from both primary and secondary data sources. Data analyzed by descriptive statistics and econometric analysis. Binary Logistic Regression model was used to analyze the determinants of malt barley value chain finance. The study revealed that, major actors in supply function of Malt Barley value chain in the study area are; Galema Union, Ethiopia Seed Enterprise, Oromia Seed Enterprises, Heineken, Soufflét malting plc, Buusaa Gonofaa MFI S. Co, Asella Malting factory, Farmer service center. Smallholder farmers, Commercial farmers, Seed producer cooperatives are major actors in production function. Respondent’s access to finance for inputs was only 40% cost of production needed per hectare of land. About 36% of respondents responded that religious probation (riba) was a major reason hindering farmers to take a loan, followed by 26% and 20% Lack of guaranty/physical collateral and respondents do not know where to take a loan from, respectively. The estimated odds' ratio of respondents gender, Education level 0.157and 2.22 respectively have positive effect whereas that of access to financial service and average productivity per hectare of land with 0.948 and 1.071 p-value respectively has negative effect on access to malt barley value chain finance. Microfinances, rural financial Institute involved in financing malt barley producers shall practice value chain finance approach than disbursing only cash to producers, adopting input finance, warehouse finance and facilitating market linkage. Rural financing institutions or Microfinance Association shall work on improving farmer’s financial literacy, easing credit collateral requirements for agricultural and agricultural output trade loans.
Factors that influencing financial inclusion in Ethiopia
(Addis Ababa University, 2022-11) Tsega Zeraiy; Andualem Goshu (PhD)
This paper examined the factors that affect financial inclusion in Ethiopia as well as the degree of financial inclusion in general and in relation to a few key attributes. To address the objectives of the study, secondary data from the World Bank's LSMS (Ethiopia Socioeconomic Survey Data, 2018/19) were used. After the raw data was cleared, the collected data was analyzed using the binary logistic regression model to assess the influence of various socioeconomic and demographic factors on having or not having a bank account, which is a proxy for financial inclusion in this study. According to the findings, respondent age, gender, whether they live in rural or urban residence, marital status, respondent awareness of formal financial institutions, savings states, poverty level, distance to the bank agent from the respondent's living area, and whether they live in the Amhara, Gambella, or Harer regions all have a significant impact on account ownership. However, account ownership is not significantly impacted by the response to shock remittance, credit availability, and education level. Based on the findings above, this study recommends that government and private financial institutions work together to address the root causes by closing the gender gap, encouraging savings, expanding the financial sector to all regions, and shortening the distance to financial institutions. In general, the government and financial institutions must work together to eradicate financial exclusion and make the financial sector more inclusive.
Effect of Social Capital on Loan Repayment: The Case Study of Oromia Credit and Saving Share Company (OCSSCo) - Sendafa Branch
(Addis Ababa University, 2023-05) Teshome Kebede; Kumela Gudeta (PhD)
This study has identified effects of social capital and other socio economic factors on loan repayment performance in the study MFI(OCSSCO)in Sendafa branch. The study was conducted on a sample of 127 customers selected both from rural and urban customers of the MFI at the rate of 60% and 40% respectively. Both qualitative and quantitative methods were employed to conduct this study. Results of Probit regression have shown that most of the coefficients are consistent with relationships and their tests of significance indicate their importance in explaining the repayment performance of borrowers in the groups. Gender, household size, distance from the MFI office, experience in group borrowing, number of visits by loan officers, pressure in the group, meeting attendance frequency, and heterogeneity in group membership were found to be significant in the model. The results also revealed a positive relationship between loan repayment and socioeconomic factors, with the majority of explanatory variables being statistically significant. However, the distance between borrower's home and the MFI office has a negative coefficient that is statistically significant. From the analysis, it can be said that social capital, shared liability and repayment performance had a very strong positive association. Social capital was found to have a significant impact on repayment performance due to the strong bonds between borrowers and the MFI and trust among the group members. The study has concluded that if the essence of self-help and cooperation is fostered and monitored properly, the poor can fulfill his/her repayment obligations.
Assessment of Urban Multidimensional Poverty and Its Effects on Livelihoods: The Case of Selected Woredas of Bole Sub City, Addis Ababa.
(Addis Ababa University, 2023-06) Wondwosen Gebretsadik Armdie; Andualem Goshu (PhD)
Poverty is a state or condition in which one lacks the financial resources and essentials for a certain standard of living. Poverty can have diverse social, economic, and political causes and effects. Assessing the multidimensional urban poverty and its effect on livelihood is vital in order to tackle the problem and suggest solutions. This study was designed to assess the Urban Multidimensional Poverty and its Effects on Livelihoods: The Case of selected Woredas of Bole sub city. A total of 296 household heads and 5 officers participated in the research and both descriptive and Econometrics analysis were employed in the data analysis. The determinants of multidimensional poverty are investigated using a logistic regression model. Alkire and Foster method of Multidimensional poverty measurement method were employed to assess the severity and deprivation status of the respondents. Thematic analysis was also employed to analyze the qualitative and the quantitative data of the study. It is analyzed by descriptive statistics and econometric technique. According to the descriptive analysis, 62 (20.94 percent) of the households in the sample were multidimensional poor. Hence, the severity level of poverty is around 23%.The results of logistic regression revealed that being female household, being employed household head, and being obtained loan are statistically significant determinants of households for being multidimensional poor. The study identified effects of multidimensional poverty on livelihoods and recommends that poverty alleviation requires coordinated commitment from the government, NGOs and CBOs, researches, the poor themselves, and other stakeholders. Moreover, livelihood diversifications should be given emphasis in all poverty reduction strategies and policies of the city.
The Assessment of Community Self-Help Saving Groups In Improving The Livelihoods of Vulnerable Households: The Case of Children’s Hopechest Addis Ababa Program
(Addis Ababa University, 2023-06) Yared Ayele; Kumela Gudeta (Ass. Professor)
Poverty with its multifaced have negatively impacted the urban populations who have been resided in the city like Addis Ababa. Because of the prevailing challenges, people have been struggling to alleviate vulnerabilities in one or another way. These vulnerabilities caused by not only financial limitations but also impeded the households’ active social role which pave the way for social marginalization. That is why its saying poverty is multifaced. To alleviative and minimize the vulnerability, there are a number of organizations, which are working on. One of is Children’s HopeChest.In doing so, the organization launched the Community Self-Help Saving Groups Economic Empowerment Program as a means of ensuring community economic sustainability with the goal of establishing Income Generating Activities (IGA). These initiatives each have their own favorable effects on the areas where the Children's HopeChest Program is active. At this time, 32 program areas have more than 204 Community Self-Help Saving Groups (SHG)with around 3140 participants each. However, the determinates of the SHG in improvements of the livelihoods of the vulnerable households has not been that much impacted the financial assets the given members of SHG which are challenged by poor time management, lack of motivations for saving of SHG members and lack of accountability among groups leader and lack of clear and Measurable follow-up structures. Data which is required for the study it can be primary and secondary sources. The research has employed both qualitative and quantitative research approaches. The data questionnaires, interview and focused groups discussion, were collected from the members of SHG of Children’s HopeChest Addis Ababa program. The final analysis of this study demonstrated that the women SHG initiative has indeed changed the beneficiaries' livelihood assets in particular by enhancing the women's attitudes and skills, expanding their social networks, enabling access to finances and IGAs, improving housing, and encouraging local decision-making. SHGs are not a panacea, though, and in the study area they have run against all listed challenges, such as the high cost of living and unpredictable inflation, negligent leadership of SHG, poor time management among SHG members and low levels of dedication and literacy as well as the lack of a formal or legal registration option.
The Impact of Index Based Livestock Insurance on the Livelihoods of Pastoralists: The Case of Borana, Moyale Woreda
(Addis Ababa University, 2022-05) Melkachew Temesgen; Andualem Goshu (PhD)
The aim of the research was to assess the impact of Index Based Livestock Insurance on the livelihoods of the pastoralists. The study was conducted in Moyale woreda, Borana zone, Oromia regional state. The required data set forth for the study was obtained from primally, the survey questioners from 95 respondents randomly selected households, from both non-insured and insured. A cross sectional mixed research was adopted as it involves qualitative and quantitative research methods. The data were collected though both open-ended and closed ended structured interview, focus group discussion and key informant interview methods. Secondary data were collected from reports and other documents. To analyze the qualitative data, descriptive, inferential statistical tools and econometric models were used. Though it is not statistically significant, the insured household’s income was found to be higher as compared to their non-insured counter parts, it had positive impact as a drought risk management practice, as traditional coping strategies were no longer dependable and the insured pastoralists were able to buy feeds, water and were able to get treatment for their sick herds. Most importantly, none of the insured households were looking for aid as a traditional coping strategy and migration was found to be the last option. However, the premium rate of the product was found to be on the higher side and government has to provide a subsidy. To upscale the product the, quality of the product and agricultural insurance policy found to have a profound effect. It is highly recommended that ILRI and OIC should work on the product quality improvement and at the same time government should work on to put in place the agricultural insurance policy and should work on awareness creation and com unity mobilization activities at the same time.

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