The 21st Addis Chamber International Trade Fair Closes

The 21st edition of Addis Chamber International Trade Fair has its closing ceremony in a symposium organized on the theme “overcoming trade logistics barriers for enhanced export performance”.  The ceremony included a ‘best stand award’ program, which is in recognition of exhibitors with the best performance of the trade fair days of this edition. The event took place at Hilton Addis, on February 28, 2017.

The presentation showed limitations in the Ethiopian logistics system and came up with figures to corroborate the claim. It said that logistics performance index puts Ethiopia 126th out of 160 countries. In customs, infrastructure, international shipment, logistics quality & competence, tracking & trading, and timeliness Ethiopia exhibited poor performance in that it registered below mid-point of the indicator or there about.

Poor performance in trade finance and trade system is behind the poor logistics performance of Ethiopia, the presenter said. Poor coordination, inadequate infrastructure and poor facility management, are other indicators of Ethiopia’s performance. Trade competiveness is influenced by transit time and logistics cost, he said.

High Djibouti port charge, the long dwell time /22 days/, and high inland transport are major factors indicated doing harm to the logistics system. Transaction cost, which takes a big share of the overall cost, is high.

Following the presentation, many ideas were forwarded by participants of the discussion. Best stand award ceremony of the trade fair was the final part of the program.


21st Addis Chamber International Trade Fair Opens

Addis Chamber International Trade Fair 21st edition has been opened on February 23, 2017and will continue until February 30. Addis Ababa Chamber of Commerce and Sectoral Associations Trade and Investment Promotion Department organizes four trade fairs throughout the year.  This year’s Addis Chamber trade fair carries the motto ‘conducive environment for enhanced export performance’.

Participants of the trade fair came from about two dozen nations and include Italy, India, Dubai, and Sudan. There were about 100 foreign companies and around 80 local ones, including small and micro-enterprises.

The closing program of the event will be a symposium under the theme “overcoming trade logistics barriers for enhanced export”. The symposium will be followed by discussion and exchange of ideas surrounding theme and major issues raised in it. The closing ceremony will be tipped with recognition of ‘best standing award’ for exhibitors. Reception and networking wind up the day. The event will take place at Hilton Addis on February 28, 2017.


Chamber Gives Training in Preparation for Coming Trade Fair

Addis Chamber Trade and Investment Promotion Department provided training to representatives of 57 local businesses in preparation for the 21st edition of Addis Chamber International Trade Fair (ACTIF) to be launched on February 23, 2017 at Addis Ababa Exhibition Center. The trade fair will be opened by Minister of Trade and members of the diplomatic community, ambassadors, senior government officials, and other invited guests will attend the event. The trade fair will continue up until February 30, 2017, it was learnt.

Addis Chamber Trade and Investment Promotion Department has been making preparations for the successful execution of the trade fair. One of the preparations made by the Department is provision of training to exhibitors. The department provided half day training to representatives of 57 participating businesses on trade fair organization and execution on February 9, 2017. The training was given by a senior expert with the department, Ato Ayele Gelaneh.  According to the trainer, areas of the training cover:

  • The important role of making preparations ahead of participating in trade fair for it to be effective,
  • Trade fair planning, goal setting and budget preparation,
  • The importance of planning marketing and promotion as well as its preparation,
  • Techniques and tools of trade fair organizing,
  • Awareness on presentation of what is on display to visitors,
  • Technical tools on identifying potential customers, qualifying them and doing follow up, and
  • Evaluating the execution of participating in trade fair.

It is important that exhibitors acquire the capacity to execute participation in trade fair and presenting their services efficiently for the intended fruits to be obtained from the trade fair. Accordingly, participants of the training have been provided the awareness to enable them take part adequately in any local and international trade fairs and promote their goods and services better. Ato Ayele said that the participants of the training have acquired the relevant know-how, which will enable them to promote their goods and services at the 21st Addis Chamber International Trade Fair in a manner that is of more significance to their businesses.

The senior expert went on to say that Addis Ababa Chamber of Commerce and Sectoral Associations is the only organization in the country that provides training on organizing trade fair and its execution. Chamber provides this training accompanying the four trade fairs it undertakes throughout the year. Chamber organizes these four trade fairs throughout the year focusing on various sectors and Addis Chamber International Trade is one of these. This year 77 local and 96 international business companies would take part in the trade fair, it was learnt.



AACCSA acquired ISO 9001:2015 certificate

 AACCSA is happy to inform all our Members that has once again, been ISO 9001:2015 Certified after implementing and maintaining a Quality Management System covering a wide scope of activities.

The Certification process went through an audit, documented in a report, which verifies that AACCSA management system fulfills the requirements of ISO 9001:2015 standard.

AACCSA looks forward and would like to reaffirm its commitment to its valued members to serve them more than ever in the days, months and years to come.


AACCSA Granted Land for Headquarters Building

The Secretary General of AACCSA  congratulate members, partners and friends of the Addis Ababa Chamber of Commerce & Sectoral Associations (AACCSA) on the decision of the Addis Ababa City Government to grant 3,000sq.m. land, at reasonable average lease rate, for the construction of a state of the art AACCSA Headquarters building.

The decision to allocate prime land which is located along the Megnagna roundabout in the Eastern part of Addis Ababa was made by the Addis Ababa City Administration Cabinet on 5 January 2017.

AACCSA sincerely believe and would like to assure the respected members that, with your active participation and unreserved support, we will embark upon the construction of AACCSA’s headquarters building as soon as possible.


Chamber Deliberates on Opportunities & Challenges of Consultancy

Awareness problem has been a major factor constraining the development of the consultancy sub-sector. Lack of appropriate support and incentives to the service sector on the part of the government is a further challenge. Addis Ababa Chamber of Commerce and Sectoral Associations organized a workshop which pondered on opportunities and challenges of consultancy in Ethiopia. The discussion took place at Hilton Addis on February 9, 2017.

Three speakers, who have been involved in consultancy service provision, shared their respective experience in which they touched on what they consider challenges and opportunities in the sub-sector. The speakers forwarded some ideas on what needs to be done.

Due to the multitude of problems the consultancy sub-sector suffers, the nation has not been able to benefit much from the undertaking and the area remained at the very beginnings of its infancy, it was indicated in the course of the discussion.

Inadequate capacity among customers to identify their need properly and articulate specific gaps they expect to be closed by the consultancy service they seek, is one area of challenge raised. Contract administration problem, limitation in application of consultancy service inputs, problems regarding tax, considering consultancy as an additional job, and a tendency to prefer international bids at the expense of local ones, are some challenges raised by speakers and participants at the workshop.

Lack of capacity among consultants themselves is also indicated as a challenge. Lack of appropriate support for the service sector on the part of the government, despite its considerable contribution national GDP, is underlined as an area of concern. A general lack of awareness as to the significance of consultancy was also included as another area that needs serious attention, it was indicated. Misfen Zegey reported.


Chamber staff deliberated on strategic plan, identified critical issues

BY Mesfin Zegey

Staff members of Addis Ababa Chamber of Commerce and Sectoral Associations deliberated on the implementation of the strategic plan in the last four and half years. Organized in groups of four, they approached Chamber human resource management style from various angles and identified important areas to on focus and directions for the way forward.

The four groups employed SWOT analysis tool in approaching the issue and dwelt on various aspects of Chamber operation and overall practice. All the four groups have presentations on their respective areas. They identified issues deemed critical and directions for possible course of action in the coming years.

Chamber advocacy task and its services were among core issues identified in the group discussions. It is reiterated that Chamber needs to pay more attention to ensure proper management of its advocacy undertaking. It is also deemed critical that Chamber put in more efforts in tailoring its services to real and urgent needs of the business community.

Exploiting the opportunities presented by IT technology is another issue deemed important to facilitate Chamber daily operations as well as enabling it to reap the maximum benefit offered by the technology. Lack of a smoothly functioning communication between top management and the staff as well as Chamber board of directors with the staff is yet another gap underlined in the discussion. The absence of such communication obstructs badly needed flow of information back and forth. Communication between management and staff is a natural part of management and gaps in this regard would have adverse impact on execution of tasks and realization of targets, it was indicated.


Leather declared a neglected industry of huge potential

Ethiopian leather industry has enormous potential investment and business opportunities and yet the country has made so little of it so far. Ethiopian investors suffer from dependence on imports for most of their inputs and export unfinished products other countries use as raw materials, tied up operation capital, as well as from lack of modern animal husbandry in the country. The event took place at Hilton Addis on January 24, 2017.

Addis Ababa Chamber of Commerce and Sectoral Associations organized its monthly forum on ‘opportunities and challenges of investment in the Ethiopian leather industry’ in which operators of the sector and related government bodies took part. A professional of extensive experience presented a study on the theme.

There are about 65 major companies of all sizes in the sector and these have created a 22 000 direct jobs. Companies come, among others, from China, Canada, India, and Germany. The sector is considered one strategic area by the government and a priority for 2013 to 25 plan, the presenter of the study said.

Ethiopian leather is composed of four sub-industries: tanning, footwear, glove, and leather garment and goods. However, development of the sector is found at a very low level. Export for the sector in 2011/12, 2012/13, 2013/14, and 2014/15 is USD 112, 123, 132, and 116, respectively. Contribution to the economy is third place after coffee and oilseeds with a GDP contribution of 9 billion birr [0.7% of manufacturing].

All these occur despite the huge potential the sector presents. Ethiopia has 56 million heads of cattle, 26 million sheep, 25 million goats and stands first in Africa and has a high place globally too.  Ethiopia has huge global market opportunities as well: COMESA, AGOA, EBA, China, India, Japan, etc. The global leather market is worth USD 160 billion, with shoe alone claiming 200 billion USD. A lot remains to be done before all these opportunities could produce the benefits to the nation.


Import Promotion Desk (IPD) Conduct Training for AACCSA members

Based on the MOU signed with Import Promotion Desk (IPD) a project financed by Germany Government on July,13,2015 to upgrade the capacity of exporters engaged in natural ingredients, the first IPD capacity building training has given to 26 participants from natural ingredient sectors  on January 24, 2016.

The specialty of the program  is companies who are part of the program will be assessed their readiness to  EU – Germany market, upgrade their capacity on information related with Germany – Eu market, help to attend in one of Germany – Eu trade fair and link with potential buyers.

The purpose of the cooperation is to contribute to the creation of mutual economic prosperity and sustainability through:

  • Export development of selected Ethiopian SMEs onto the German and European export markets in the sectors of Natural Ingredients, Cut Flowers and Fresh Fruits & Vegetables;
  • Organization of joint Study Tours of Ethiopian exporters to Germany in winter of 2015 (natural ingredients);
  • Support the participation of Ethiopian natural ingredients exporters in trade fairs in Germany and Europe (Biofach, In-Cosmetics, ANUGA/SIAL and/or FIE/HIE). IPD supports the Ethiopian exporters by organizing B2B-meetings based on its networks with German importers;
  • IPD supports AACCSA in building up own country pavilions at the trade fairs in Germany and Europe (Biofach, In-Cosmetics, ANUGA/SIAL and/or FIE/HIE as an interim arrangement till the benefits are realized by members of the chamber.
  • Networking activities with AACCSA at selected international trade fairs in Germany (and Europe);
  • Provision of demand-oriented training modules and workshops in joint collaboration between IPD and AACCSA;
  • Partnership aiming at creating synergies between the two organizations for the benefit of their clients and program partners (e.g. German sector organizations). It is built on the joint mission of the two organizations to contribute to trade-LED (local economic development);
  • Provision of information in the field of Economy and Trade of Germany, if possible of the EU.

Wheat Value Chain Needs Fundamental Transformation

As part of the ongoing efforts in place and to contribute in addressing to the challenges the manufacturing sector face, Addis Ababa chamber of commerce and sectoral Associations has initiated a wheat value chain study with a view to manufacturing sector in Ethiopia.

On welcoming speech of the workshop, Secretary General of AACCSA, Ato Getachew Regassa said that such type of value chain studies have crucial contribution for the improvement of wheat production in Ethiopia. Since wheat is among the most nutritious cereal crop, it has to be produced widely. Moreover, to ensure high level production and productivity of wheat and satisfy the whole wheat value chain actors and consumers there is a need to utilize improved wheat manufacturing technology, he stressed.

Wheat is an important staple food in the diets of many Ethiopians. Its production and marketing becomes the means of livelihood for millions of small holder households. It is also a critical raw material for the domestic wheat industry, which provides an important contribution to employment opportunity and value creation activities in the agri-food sector.

In the workshop, consultant of the study, Ato Assefa Hagos presented an overview of wheat value chain analysis in Ethiopia. According to him the strategic importance of wheat production has resulted in a strong involvement of the State and many other stakeholders at all levels of the wheat value chain.

The survey result investigates wheat value chain actors and their value addition roles, analyze major constraints facing manufacturing industries and determine possible strategies for economic actors superior value creation activity.

During the survey, manufacturing industry participants were asked about what really?  The survey result also found in rank order that determines most the quality of their wheat products include; quality of raw material, efficiency and factory plant type, employees work knowledge and Company Leadership.

According to Assefa Hagos, the consultant believes that effective wheat value chain industry in Ethiopia could be made possible through a Fundamental Transformation – Meaning adding meaningful value to a wheat value chain.He added that marketing exchange doesn’t rely on the maximum of learning about customer needs and designing new product offerings to suite those needs.   The study pinpoints that linkage among chain participants is very weak.

Participants in the work shop pointed that traditional way of transaction is one of the challenges in the wheat value chain. So, they stressed to focus on the value creating system, where growers, suppliers, milling industries and customers work together to create value.

The study recommends to the needs of reconfiguration of roles and relationships among actors.Agricultural machineries can be acquired   through different means; via cooperatives,  farmer’s unions and association or close relatives and interested groups coming together,  etc… Growers and milling industries should make a close relationship to create value way beyond focusing on economic value creation only, the study indicated.

Manufacturing industries must actively involve in improving organizational leadership by focusing on    a supply chain activities. Economic Power is still in the hands of growers not consumers, hence company owners should work for an environment of abundance so that they may see economic power shift to consumers.