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Ethiopia

If you want to go far, go together

Jana Malinska's picture

A new global network of Climate Innovation Centers will support the most innovative private-sector solutions for climate change.
 
Pop quiz: What does an organic leather wallet have in common with a cookstove for making flatbread and a pile of recycled concrete?
 
Believe it or not, each of these represents something revolutionary: a private sector-driven approach to climate change. Each of these products – yes, even concrete – is produced by an innovative clean-tech company. And as of March 26th, those businesses, and hundreds more like them, have something else in common. They’re connected through infoDev's newly established global network of Climate Innovation Centers (CICs), an innovative project that is taking the idea of green innovation beyond borders.
 
Having piloted the CIC model in seven different countries – Kenya, South Africa, the Caribbean, Ethiopia, Morocco, Ghana and Vietnam – it was time for infoDev, a global entrepreneurship program in the World Bank Group’s Trade and Competitiveness Global Practice, to follow a time-honored business practice: to scale up and take this movement global.

And so, as part of last month’s South Africa Climate Innovation Conference, we joined forces with 14 experts from the seven different countries where the CICs operate to establish the foundations of the world’s first global network devoted to supporting green growth and clean-tech innovation.



CIC staff debate and discuss the new CIC Network during the South Africa Climate Innovation Conference.

This global network of Climate Innovation Centers – business incubators for small and medium-sized enterprises (SMEs) – has been designed to help local ventures take full advantage of the fast-growing clean-technology market. The infoDev study “Building Competitive Green Industries” estimates that over the next decade $6.4 trillion will be invested in clean technologies in developing countries. An even more promising fact is that, out of this amount, about $1.6 trillion represents future business opportunities for SMEs, which are important drivers of job creation and competitiveness in the clean-tech space.

What’s in a name? How new reforms are easing entry into Ethiopia’s formal sector

Mamo Mihretu's picture

Registering a trade name is a big piece of the puzzle when doing business in Ethiopia. Source - MaziramaIn Ethiopia, registering a trade name-- a precondition for a business startup-- had long been one of the most cumbersome procedures of starting a new business. One had to make frequent visits to the Ministry of Trade with a number of potential trade names, which in most cases were routinely rejected for no clear reason. In one documented instance, an applicant had to submit eighty different names before he was issued a legally registered trade name. The inordinate amount of time that one would spend in the process had created a huge public outcry.
 
Thankfully, things have changed. The Ministry of Trade, with support from the World Bank Group’s Investment Climate Program, has issued a new, simplified, and modern Trade Name Registration Law.

Lessons on Forests from Brazil to Ethiopia and Mozambique

André Rodrigues de Aquino's picture
Photo by Andrea Aquino / World Bank​Can Ethiopia and Mozambique learn a lesson from Brazil on harnessing forests sustainably for economic growth?
 
Thanks to a recent knowledge exchange program, yes!
 
As we can all imagine, Africa’s lush greenery and planted forests offer huge potential but the sector’s expansion faces major barriers like access to land, lack of access to affordable long-term finance and weak prioritization of the sector.
 
Take Ethiopia, for example. About 66.5 million cubic meters of the country (46% of total wood-fuel demand) is subject to non-sustainable extraction from natural forest, wood- and scrublands, resulting in deforestation and land degradation. In Mozambique, charcoal is still produced from native forests, leading to immense pressure on natural resources, and way beyond its regeneration capacity. Both countries want to know how the forest sector can contribute to their national development plans and help grow their economies and reduce rural poverty, while being environmentally sustainable.
 
This topic is of even more importance as we celebrate the International Day of Forests on March 21, and helps us raise awareness on the need to preserve forests and use this natural wealth in a responsible and sustainable manner.

Can we find a real and viable solution for women who need banking services?

Malcolm Ehrenpreis's picture

Since the beginning of time, women have been at a disadvantage when looking for financial loans. One reason is that women have less control over land and assets that can be used as traditional collateral. This puts a real damper on her ability to launch an enterprise or, even when she manages to launch one successfully, to take it to the next level.

In Africa, women’s entrepreneurial knack is self-evident to anyone who sets foot on the continent—just look at any roadside! So, this problem is likely quite costly and holding back development. Can we solve it somehow?

A Arne Hoels it happens, the Entrepreneurial Finance Lab, an entity that spun off from Harvard’s Center for International Development in 2010, has developed a tool using something called “psychometric testing”, which measures personal characteristics such as knowledge, skills, education, abilities, attitudes and personality traits as a means to predict how likely it is a person will pay back a loan. And it is proving quite effective. Could this be a way to finally help find a solution for women who don’t have any credit history or hold formal title to assets that are traditionally accepted as collateral?

The World Bank Group’s Global Practice for Finance and Markets (GFMDR) started thinking seriously about this, and worked to see it if it could be integrated in a Bank-funded project in Ethiopia (the Women Entrepreneurship Development Project, US$50m). Francesco Strobbe leads the project team, and started to discuss the issue with us in the World Bank’s Africa Region Gender Innovation Lab (GIL). “I thought this was a great opportunity to test some innovative measures to see if we could reach a real breakthrough with much potential for women entrepreneurs—in Ethiopia and elsewhere.”

Future Development Forecasts 2015

Shanta Devarajan's picture

Despite their mixed record last year, Future Development's bloggers once again offer their predictions for 2015.  Eight themes emerge.
 
1. Global growth and trade. The US economy will strengthen far above predictions. Together with lower oil prices and a better business climate in emerging markets, this will create substantial positive spill-overs, including to the smaller export-oriented Asian economies, boosting the growth of their manufactured exports well above recent trends. The US will look to open new free trade agreements in Asia—India may try to join—and seek opportunities to do the same in Africa. Meanwhile, Germany will face increasing resistance to the free-trade agreement with America (TTIP), just as Angela Merkel celebrates her 10th year in office.

#BestOf2014: Six Popular Environmental Stories You Shouldn’t Miss

Andy Shuai Liu's picture
As we get ready to kick off the new year, let’s recount the voices and stories about how we can enhance the way we interact with our planet. From Ethiopia to Indonesia, we’ve seen our efforts improve lives and help incomes grow as countries and communities strive for greener landscapes, healthier oceans and cleaner air.
 
Take a look back at some of the most popular stories you may have missed in 2014:
 
1. Raising More Fish to Meet Rising DemandPhoto by Nathan Jones via Flickr CC BY-NC 2.0

Aquaculture is on the rise to help feed a growing population. New #Fish2030 report: http://t.co/0fbH4fLDJO http://t.co/Lm5eHsGZaR

— World Bank (@WorldBank) February 6, 2014

Why We’re Making a Stand for Resilient Landscapes in Lima

Magda Lovei's picture
Photo by Andrea Borgarello / TerrAfrica, World Bank)​World leaders and land actors are in Lima this week to help advance climate action. Climate resilience—including the resilience of African landscapes—will be at center of the agenda as they define the role of sustainable, resilient landscapes for a new development agenda.
 
Why should the world—and Africa in particular—care about resilience?
 
The importance of resilience as an imperative for development is nowhere as obvious as in Africa. Fragile natural resources—at the core of livelihoods and economic opportunities—are under increasing pressure from unsustainable use, population pressure, and the impacts of climate change.
 
Sustainable development will only be possible in Africa if natural resources are valued and protected. It will only be possible if their resilience to shocks such as climate change is improved. ​Resilient landscapes—where natural resources and biodiversity thrive in interconnected ecosystems that can adapt to change and protect people from losses—are important to the work of ending poverty and boosting prosperity.


 

Poverty will only End by 2030 if Growth is Shared

Espen Beer Prydz's picture

Migrant workers cook a meal While the world has seen a rapid reduction in extreme poverty in recent decades, the goal of ‘ending poverty’ by 2030 remains ambitious. The latest estimates show that 1 billion people (14.5% of the world’s population) lived below the $1.25 threshold in 2011. Projections until 2030 suggest that even under optimistic growth scenarios, the global poverty target may not be reached. The latest World Bank estimates show that if developing countries were to grow at the (rather unprecedentedly high) rates they achieved during the 2000’s the global poverty headcount could decline from 14.5% in 2011 to 4.9% in 2030 – short of ‘ending poverty’. These projections assume distribution-neutral growth – that every individual’s income within each country grows at the same rate, essentially keeping inequality unchanged. As in the past, overall growth will be an important driver of future poverty reduction, but the inclusiveness of growth will also matter.

How to De-Enclave the African Resource Sector for More Inclusive Growth and Development

Ken Opalo's picture
Oil drums in Ethiopia. Source - 10b travelling

The recent acceleration in growth rates across much of sub-Saharan Africa may not be purely commodity-driven, but for many of the region’s economies macro-economic stability is still dependent on prudent management of natural resources. For this reason, a strategic shift is required to shield African economies from commodity boom-burst cycles.
 
For much of the last half century, the dominant political economy model of natural resource management in Africa was this: states received royalties from mostly private mining companies and then were supposed to invest in public goods such as roads, hospitals, and schools. Private mining companies, for their part, would pick up the slack whenever states failed. Most of the time this happened through corporate social responsibility (CSR) initiatives, as a way of buying the social license needed to operate in specific communities.
 
This model has proven to be a complete failure in nearly all resource-rich African states, for a number of reasons.
 

Reaping the fruit of determination

Guang Z. Chen's picture


The highlands of Ethiopia, especially Tigray, were notorious for their severely degraded land. High population density, unchanged agricultural practices, climate change, the steep topography and intermittent and extreme rainfalls are the main causes of land degradation in the area.


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