Saturday, October 25, 2025
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Running on empty

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If you, like me, drive around town regularly, you will be familiar with the occasional car – usually a taxi – that has come to a stand still because the fuel tank has run dry. Next you will see the driver pick a bottle or small jerry can from the trunk and empty its contents into the filler gap. The one or two litres of fuel thus added will allow the driver to reach the next fuel station or run dry again. In the last case he will now make it to the nearest fuel station on foot to fill up the container and go back to the car, which has most likely been left on the road just where it coughed itself to a final stop. Running out of fuel doesn’t seem to be a reason to panic for the driver as it happens frequently and he is used to running on empty. He makes ends meet with the little money he scratches together day by day; a hand to mouth way of making a living.
It is like running a business on credit although the consequences seem more drastic as the car abruptly comes to a stand still once the engine runs dry. Normally there are warning signs as the fuel meter reaches the red area, unless of course it doesn’t work anymore, which is not unlikely. In that case the driver estimates how far the little fuel left will still take him but often misjudges the distance he can still go.
Similar practice can be observed in running a more formal business as the cash at hand falls short of the required running costs. There may be warning signs but just as in our example above, they may be misinterpreted or ignored. In the worst case there are no warning signs – like in the case of the dysfunctional fuel gauge – as there may be no system in place providing essential management information, based on which appropriate and timely measures can be taken. Anyhow, the business owner will now turn to the crisis management mode, a strategy we are good at in Ethiopia but which rarely provides for lasting solutions to a recurrent problem: stagnant cash flow.
The crisis management strategies thus applied will include using money which was reserved for other important purposes (savings for example or maintenance), borrowing money or taking a bank loan. Where the business owner has a good relationship with the bank and the bank considers the business creditworthy, they may agree on a credit facility. Formal credits and loans cost money though in the form of interest and should therefore be kept to a minimum.
It is surprising though that many businesses are run without basic systems in place to manage the finances of the company. Like in the example of the taxi, it is hand to mouth. In addition the finances are usually supervised by the bookkeeper or the accountant, while the secretary handles the petty cash. Rarely are the data provided by the accountant analysed to provide strategic management information. Another issue is that the business owner may decide to provide services to frequent clients on credit. While this seems a good strategy to attract and keep clients this is not without risk either as it is sometimes difficult to recover credits in time. This only leads to more crisis management and meanwhile the company is running on empty. This is not a good situation to be in as the running costs need to be paid, like rent, utility bills, production costs and not to forget the salaries of the workers.
So what can be done to avoid the dreaded recurrent stagnation of cash flow and to prevent having to resort to crisis management all the time? Without pretending to be exhaustive, here follow a few simple suggestions that may help, as I observe that many small businesses don’t have such rather basic measures in place.
Have a financial management policy, which describes the monetary dos and don’ts in your company. Here you describe all financial management procedures you want to follow, set the limits of outstanding credits, stock value, reservations, etc. Make sure you adhere to it and your managers know the policy.
Make a budget and make sure to include all production costs and overhead in your pricing.
Have a contingency plan and replenish your contingency fund monthly.
Appoint a finance manager who is capable of analysing the financial situation of the business, points out risks in time and suggests corrective measures to management.
Review your financial situation frequently and adjust your plans accordingly.
Negotiate a credit facility with your bank and include payable interest in your pricing.
Be service minded, build good relationships with your clients and provide incentives to encourage timely payment.
Deliver high quality services and keep your promises to enhance your own trustworthiness.
Get rid of defaulters.
Manage your finances in a disciplined manner, make savings, reinvest and avoid unnecessary consumption of hard-earned profits.
Be proactive and don’t wait until it is too late.
In conclusion: Keep your business financially healthy; don’t run it on empty. Once it stalls it is not easy to kick start it again.

Ton Haverkort
ton.haverkort@gmail.com

A bomb shell from League Company President Fekade Mamo

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While the cut throat Ethiopian Football Federation Presidential and Executive body election is getting momentum, the League Share Company President Lieutenant Fekade Mamo gave an earth shaking press conference that rocked the football family.
According to Fekade Mamo the press conference is just to give an insight to the General Assembly what is really happening surrounding the country’s football. “I am here on behalf of the Share Company just to give you some information about big scandals taking place in the name of the country’s football” Fekade remarked at the conference.
Fekade disclosed four major scandals that happened under the very eye of the incumbent executive body. Failure to deliver proprietorship certification for the 95 million Birr Football Federation office building, a messy deal with sports Equipment Manufacturer UMBRO and a 200,000 Birr commission payment for a certain individual and issuing a business class round trip 345,000 Birr worth air ticket to one of the Executive members are the real sensitive issues mentioned at the conference. “We were told that we do not have a right to give the press conference. But we simply ignored it and here we are with crude facts” Fekade stated firmly.
In the meantime the Football Federation General Secretary Baheru Tilahun appeared in ETV sport to declare that the League Committee’s press-conference is both illegal and quite a defamation campaign to rub dirt on the executive body members. “The League Committee could have done lots to better the country’s football rather than staying busy in such defamation acts” Baheru remarked at his brief stay with the sport news.

Sundowns impressed by Abubeker Naser’s first appearance

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Mamelodi Sundowns have confirmed the arrival of Ethiopian striker Abubeker Nassir from Ethiopian Coffee after the player received his long-awaited international clearance.
There had been some suggestions that the 22-year-old would be loaned out this campaign, but judging by the welcome afforded to him, it appears he is very much in the plans of co-coaches Manqoba Mngqithi and Rhulani Mokwena. Nassir has been a prolific scorer in the Ethiopian league in the last three years, used as a central striker although he started out on the left wing.
It was his 29 goals in 23 games in the 2020-21 season that caught the eye of the technical team at Sundowns and they made their move, signing the player in January, but loaning him back to Ethiopian Coffee for the remainder of last season.
Clearly a player of some quality – he was also a star for his country as they shocked Egypt in the 2023 Africa Cup of Nations qualifiers early this month – Nassir has largely only been tested in his domestic league.
The slight concern for Sundowns is how he will adapt to the rigours of the much more physical and technically-superior DStv Premiership.
Sundowns beat Kaizer Chiefs to the signature of the forward, who also represented Ethiopia at the Africa Cup of Nations in Cameroon and featured against Bafana Bafana in the 2022 Fifa World Cup qualifiers.
Nassir came through the ranks at local club Harar City but was signed by Ethiopian Coffee in 2016.
He initially played in the reserve side but worked his way into the first team and was an instant hit, with a number of clubs across the continent taking notice of his talent.
It is reported he also had offers from Europe, though the lower leagues in Spain and Georgia are mentioned, as well as North Africa.
He made his international debut in 2019 and had five goals to date, the latest in June against Malawi in the 2023 Cup of Nations qualifiers.

St George get Sudan’s Al Hilal; Fasil face Burundi’s Bumamuru

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Ethiopian Premier League Champions, St George FC will face Sudanese outfit Al Hilal in the preliminary round of the 2022/23 CAF Champions League while Fasil paired with Bumamuru.
The fixture was announced on Tuesday in Cairo where the draw for the 2022-2023 CAF Interclub competitions Preliminary Rounds took place.
If they progress, St George will face the winner of Tanzania’s Young Africans between Zalan FC of South Sudan in the second round.
Preliminary fixtures will be played on the weekends of September 9-11 and 16-18 while the last-32 fixtures are set for the weekends of October 7-9 and 14-16.
The reigning African champions Wydad Casablanca of Morocco are one of six teams to be given a bye into the second qualifying round of the tournament.
They will begin the defense of their title against either Nigeria’s Rivers United or Watanga of Liberia.
The 16 winners of the second-round ties will advance to the group stage of the tournament, while beaten sides will drop into play-offs for the Caf Confederation Cup.
Fasil paired with Bumamuru
Ethiopian representative Fasil Kenema FC will play against Bumamuru FC of Burundi in the preliminary round of the 2022-23 Caf Confederation Cup competition.
Fasil are playing in the confederation cup thanks to their runner-up finish in the 2021/22 Ethiopian Premier League campaign.
Fasil, should they progress, will face three-time champions CS Sfaxien of Tunisia for a place in the group stage.
Including CS Sfaxien and reigning champions RS Berkane of Morocco, six clubs were given byes into the second round of qualifying for this competition.
The Cup holders RS Berkane will play either Kwara United from Nigeria or Niger’s AS Douanes in the second round.
The first two rounds will be held in September and October, with a final play-off round against African Champions League second qualifying round losers in November.
Unlike the three previous seasons, the final of this edition will be played in a two-legged format.