Despite improvements in the overall activities of Chambers in promoting the trade and investment goals of the country, the sub-sector is still facing various challenges, experts say.
Ethiopia’s century and plus years of experience in bringing the business community together for its own cause did not go smoothly over the years, says Shiferaw Shitahun, a researcher with Addis Ababa University College of Business and Economics.
“In my view, the past economic system [the command economy and mixed economy during Derg regime] critically hampered the thriving of the private business sector, while making the country to lag behind a fast moving world of business.
Incumbent rifts of Chambers in attracting trade and investment as well as linking its members to international experiences is, therefore, traceable to the past economic systems, he argues.
Africa Insurance Company Resource Management Deputy Managing Director Kassahun Begashaw for his part says the Chambers have also limitations in creating informed business community at all sectors.
It is common to see less informed persons engaging in business areas that fetch quick returns (or in businesses that draw easy monetary benefits). If this trend continues, then who will invest in schemes -such as manufacturing -that have delayed returns?
He continues saying that the business community needs to nourish labor intensive sectors, which also promote innovation, to lay the development of the country on a sturdy base.
For him, the business mentality of the community can only be cured with the strong and sustainable efforts of chambers.
He also identifies another debilitating factor. The chambers lack well-functioning structures that help them be efficient in all of their works, he says, adding that Addis Ababa Chamber of Commerce and Sectoral Associations (AACCSA) has been doing better jobs in this regard. But, State chambers and sectoral associations are far behind it.
It is evident that the largest members of the business community have been stuffed in the capital. Thus, AACCSA is likely to build more experience than state chambers. The latter, therefore, need to get ample platforms to emulate best experiences of the former, he comments.
Getachew Regassa_is Secretary General with AACCSA. He says that a lot of tasks have been undertaken over the past years to help State Chambers emulate AACCSA’s experiences. But, he also admits as the platforms are not still adequate.
For him, constraints relating to human capital and other basic facilities are some of factors that widen the chasm among Chambers. The Chamber is also working jointly with the government and other pertinent bodies to address bottlenecks step by step, he adds.
Despite the challenges, ample success stories have been registered over the past decade. For instance, hundreds of thousands of people visit Addis Chamber International Trade Fair every year. And a number of members of the business community–both local and foreign ones– participate in the event.
“The fair allows local business community to draw international experiences.”
Besides, AACCSA hosts Agriculture and Food International Trade Fair, Tourism and Travel Fair and Manufacturing and Technology International Fair. These fairs attract a growing number of participants from across the globe, he says.
However, there is a tough challenge ahead pertaining to the unavailability of standard exhibition and convention center in the capital. “Of course, Addis-Africa International convention and exhibition center–which is under construction– will bring a good solution to it.”
AACCSA Trade and Investment Promotion Director Abraham Hailemariam builds on the points at issue.
The business community is busy of doing business as usual, he says. Thus, Addis Chamber has intensified efforts of equipping the community with knowledge and skills of doing business differently.
“Through offering various trainings, we are attempting the businesses to catch up with international standards,” he adds.
But, to sustainably overcome the challenges, the Chambers ought to extend structures that are in line with the interests of the business community.
Apart from creating informed members, the Chambers has also a responsibility in advocating for the expansion of business friendly environment. For this to come to success, the Chambers need to create strong linkages among their members and with other similar institutions.
By doing so, it is possible to boost their experience, promote innovation and attract local and foreign investment, he notes.
It goes without saying that if the Chambers are well managed, the business community can foster regional and international trade, cultural and humanitarian exchanges. In this regard, all stakeholders need to come together to strengthen the capability of Chambers both in representing the business community and delivering the required skills to their members, the commentators hint.