The Addis Ababa Chamber of Commerce and Sectoral Association reached a partnership agreement with the Ethiopian Development Research Institute.
The collaboration between the two organizations is intended to enhance development in the private sector through improving the low performance seen in the areas of business competition, managerial skills and lack of flexibility.
Profit in the market generally arises from efficiency but traditional practices in the Ethiopian market allow dominant traders to benefit from largely inefficient means which is abnormal explained Newai Gebre-ab, Executive Director of the EDRI.
There are rarely clear boundaries between owners and businesses prohibiting clear managerial roles and financial bookkeeping which is the reason why traditional business are struggling and unable to adopt modern business practices he noted.The partnership between the chamber and the research think tank is particularly targeted on shaping the traditional business environment to be more in line with the national developmental agenda according to Newai.
The Addis Ababa Chamber intends to launch the Ethiopian Corporate Governance Institute which will be like the Peer Review Mechanism of the African Union with member states evaluating the economic, political and social performance of counterparts on a voluntary basis.
The code of conduct for the proposed institute has already been drafted and institute will be launched within 18 months claimed Ayalew Zegeye, President of the Chamber.
Source: Capital
