All is fair in love and business

The role of industry in Ethiopia has always been as an afterthought in light of the overwhelmingly agrarian nature of the nation’s economy. Be that as it may, modern industrial enterprise began in the early 1900s with the domestic production of gun powder, cavalry items, ploughshares and sundry farming implements. The commercial milling of cereals was also one of the earliest economic activities that involved machinery.
It was during Haile Selassie’s long reign that industry took tentative steps forward. The monarch focused on establishing light and medium industries in Addis Ababa, Dire Dawa and Asmara - the latter, which had already been given a head start by the Italians, was in the 1940s and 50s one of Africa’s most industrialised cities.
This promising beginning was cut short as the imperial industrial legacy was sorely treated by the next regime. Factories were nationalized and soon became unprofitable derelicts. Though socialism is long gone, its crippling after effects are still with us in many forms. These are a failure to reward initiative, poor labour relations, a snobbishness towards the private sector and fearful resistance to the slightest innovation. It is not surprising then that with such mentality, items produced by some state industries have not even changed labels in decades much less infrastructure.
Industrial enterprises in the former era had guaranteed markets with virtually no competition. The centrally planned economy did not play favourites so there was no need to advertise and promote products. It seems that the syndrome is mostly alive and well among certain state owned industrial enterprises who regard dynamic private or joint venture companies as upstarts who would rock the boat. Resting on their rusty laurels, they produce at subsistence level simply because they persist in resisting changes in plant, machinery and skilled labour.
In contrast, private enterprises struggle and expand, improve products and having done so, embark on aggressive and effective promotional campaigns. True though, there are instances when overzealous businesses and agents may conduct unsanctioned and improper promotion methods, this is a matter for the concerned regulating body to monitor and should not be regarded as cause for disparaging active promotional work.
But the fact remains that expansion plus good product plus good promotion equals higher and growing market share. This is not rocket science but economics 101. Welcome to the world of competition.
There was a time when business promotion was totally banned and when it was finally allowed, conventional wisdom had it that only failing businesses and services advertised. Thankfully this attitude is changing and many enterprises including some owned by the state are now reaping the fruits of re-investment and consistent advertising.
We urge those enterprises whether state owned or not that for one reason or another have not boarded the train of progress to wake up and smell the profits. In the final analysis the competition is not a problem and neither is it a matter of product quality. It is rather a lack of vision and the mistaken reliance on a former market whose loyalty was bred out of scarcity and socialist economics. Needless to say, this shaky consumer loyalty will inevitably fracture as more ambitious, modern and committed private industry lulls away the consumer with its dynamism.
The rapid development of manufacturing industries and providers of goods and services, if sustained may yet take this country out of its agrarian mould. Industrial development must go hand in hand with growth in other sectors such as in the field of advertising and promotions where the boundaries are far from defined. There are many grey eras that need to be clarified if industries and businesses are to avoid misunderstandings over promotion strategy. Formulating clear cut regulations on the limits responsibilities and scope of advertising is absolutely vital.
We should not at this stage in our development be confused about such matters like the role of the lottery administration, and whether enterprises can or cannot run promotional raffles. Any advertising that is performed under such as cloud of uncertainty is destined to at best sow confusion and at worst lead to expensive litigation. It is hoped the concerned authorities will rise to the challenge.