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The Hospitality Culture of Ethiopia and Its Potential for Business Success

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The Hospitality Culture of Ethiopia and Its Potential for Business Success

I’ve had the privilege of penning over 11 insightful articles on branding for The Weekly Capital, covering topics like ‘The Misconceptions About Branding,’ ‘The Basics of Successful Branding,’ ‘Why Brands Matter,’ ‘Can Anything Be Branded?’ ‘How to Choose the Right Logo for Your Business and Amplifying Brands: The Power of the Right Brand Ambassador,’ to name just a few. In this article, however, I’m stepping away from the branding world to dive into the heart of every organization’s success: the customer.

Ethiopia is a nation with a long and rich cultural history, and one of the most notable aspects of this culture is the renowned hospitality of its people. Ethiopians are celebrated for their warmth, generosity, and willingness to go out of their way to make guests feel welcome in their homes. Whether in rural villages or urban centers, the spirit of hospitality is woven into the very fabric of everyday life. When a guest arrives at an Ethiopian home, it is customary to offer food, drink, and company, with the aim of making them feel comfortable and valued. This hospitality is not limited to the home, as it often extends to social gatherings, religious ceremonies, and cultural festivities, where the act of welcoming others is at the heart of Ethiopian social traditions.

However, there is a noticeable contrast when one steps into the realm of business. The level of service and the attitude towards customers in many locally owned businesses or government organizations in Ethiopia often falls short of the hospitality observed in personal settings. Employees in these environments are sometimes indifferent, distracted, or not genuinely interested in providing a pleasant customer experience. This discrepancy represents a missed opportunity. If Ethiopian businesses can learn to take the same warmth and attentiveness they show in their personal lives and apply it to their customer interactions, they could unlock a powerful competitive advantage. Creating an environment where hospitality is integrated into business practice would set Ethiopian companies apart from others, create loyal customers, and help them compete effectively in both local and global markets.

Hospitality in the Home vs. Business Settings

Ethiopian hospitality is ingrained in the culture and seen as a duty, a way to honor others and build positive relationships. When people visit an Ethiopian household, they are treated with the utmost respect and care. Whether it’s offering a cup of coffee, food, or a place to sit, hosts go above and beyond to make their guests feel comfortable, often treating them like family. This behavior is part of the broader Ethiopian worldview, where kindness and generosity are seen as fundamental values. It’s a ritual that’s embedded in the daily rhythm of Ethiopian life, and it’s something that many Ethiopians are immensely proud of.

Yet, the business environment presents a stark contrast. Too often, customers in Ethiopia encounter a cold, transactional service experience. Whether in a retail store, a bank, or a government office, the focus tends to be on completing the transaction as quickly as possible, with little regard for building a relationship with the customer. Employees in these settings may not take the time to acknowledge customers warmly, nor do they actively engage in creating a welcoming environment. This gap between the cultural norm of hospitality at home and the business setting is something that needs to be addressed. When Ethiopian businesses embrace the values of hospitality in the workplace, it can significantly enhance the customer experience. Customers who feel valued and respected are more likely to return, and they are also more likely to share their positive experiences with others. The businesses that adopt this mindset will stand out in the market, cultivate customer loyalty, and foster an atmosphere of trust and satisfaction.

The Importance of Customer Satisfaction for Business Growth

Customer satisfaction is one of the most critical elements of any successful business strategy. In today’s competitive global market, customer satisfaction is no longer just a “nice-to-have”—it is an absolute necessity for growth and survival. Research consistently shows that businesses with a strong focus on customer service experience higher customer retention, more frequent repeat business, and stronger recommendations from existing customers. This leads to long-term success and contributes to a positive reputation that can drive both brand loyalty and market share.

In my books, Make a Difference with Customer Service and ደንበኛ ይቅደም/Customer First, I explore the critical role customer service plays in determining the success of an organization. When companies invest in delivering high-quality service and making customers feel valued, they build a strong, lasting bond with their clientele. This bond results in repeat business, referrals, and increased customer lifetime value. Moreover, in today’s increasingly customer-driven global economy, businesses that fail to prioritize customer satisfaction are likely to be left behind. Companies that excel in customer service have a unique opportunity to differentiate themselves in the marketplace, thereby attracting and retaining customers even in the face of fierce competition. For locally owned Ethiopian businesses, this presents an incredible opportunity to thrive, especially if they can weave the core value of hospitality into their customer service practices.

Building Customer-Centric Businesses

The foundation of a successful business lies not only in the quality of its products or services but also in the experience it offers its customers. In today’s business environment, customers are looking for more than just a transaction—they seek a relationship with the brands they interact with. A business that prioritizes customer satisfaction fosters a positive relationship with its clients, which in turn translates into customer loyalty. Satisfied customers will return for additional purchases, recommend the business to others, and often become a company’s most effective promoters. Word-of-mouth referrals are one of the most powerful forms of marketing, and they can provide a significant boost to a business’s reputation and bottom line.

However, customer satisfaction is not something that happens by accident. It must be intentional, consistent, and integrated into the DNA of the organization. This requires a shift in mindset, starting from the top of the company and permeating throughout the entire workforce. The company’s leadership must recognize the importance of customer service and make it a key part of the company’s strategy. Customer service should not be an afterthought or an isolated department but should be central to the business’s core values. Every interaction with customers, whether in-person, online, or over the phone, should reflect the business’s commitment to putting customers first. Leadership must also ensure that customer service is regularly discussed in management meetings, that employees are held accountable for their performance, and that continuous improvement is part of the organizational culture. By making customer service a key agenda item, businesses can help ensure that employees are motivated, engaged, and aligned with the company’s mission to satisfy customers.

Hiring the Right People for Customer Service Excellence

One of the most critical elements in building a customer-focused organization is hiring the right people. Customer service starts with the employees, and their attitudes, behaviors, and skills directly affect the overall customer experience. The right employees can make a huge difference in how customers perceive a company. A person with a positive, proactive attitude will go above and beyond to meet the needs of customers, offering solutions, and demonstrating a genuine interest in the customer’s experience. Conversely, employees with a poor attitude or lack of customer service skills can have a detrimental effect on a business’s reputation.

The hiring process is crucial. Companies should focus on hiring individuals who possess not only the required technical skills but also a customer-first attitude. This means looking for candidates who are empathetic, communicative, and solution-oriented. Once the right people are hired, it is essential to continue investing in their development. Ongoing training is vital for keeping employees engaged and updated on best practices in customer service. Regular training sessions, workshops, and feedback loops are essential in maintaining a high standard of customer service across all areas of the organization. Furthermore, it is important to recognize and reward employees who excel in customer service, as this reinforces the behaviors that lead to customer satisfaction.

By hiring the right people and providing them with the tools and training they need to succeed, businesses can create a team that is equipped to deliver exceptional customer service. This, in turn, leads to happier customers, increased customer loyalty, and ultimately, long-term business success

We’d love to hear your thoughts on Ethiopia’s hospitality culture and the lack of customer service in many local companies. Share your feedback with us via email at info@hayasebat.com or give us a call at +251 988 272 327.

Aschalew Tamiru is the founder and CEO of HayaSebat Marketing and Branding PLC. With extensive experience in senior management roles across various companies, he has made significant contributions to the industry. Aschalew is also a producer and host of popular business radio and TV shows. He is the author of two books: Make a Difference with Customer Service and Denbegna Yikidem (in Amharic). A certified Management Consultant, he is passionate about empowering businesses and individuals to achieve success.

Why Russia-US talks are a good sign for all

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Why Russia-US talks are a good sign for all

The shift in relations between Russia and the US may open a door for a more balanced multipolar system

Africa has been heavily affected by the conflict between Russia and Ukraine since the start of Russia’s military operation in February 2022.

According to a report compiled by ODI Global, the African Economic Research Consortium (AERC), the Economic Research Forum (ERF), and Partnership for Economic Policy (PEP), ‘Impact of the Russia–Ukraine war on Africa: policy implications for navigating shocks and building resilience’, Africa has been caught in the crossfire due to lack of supplies of food and agricultural commodities.

The report features case studies on Egypt, Ethiopia, Kenya, Morocco, Mozambique, Senegal, South Africa, and Sudan, and finds that while direct trade exposure is low, Africa relies on Russia and Ukraine for food and fertilizer imports.

Prices up

The conflict has driven up prices of oil, food and fertilizers globally. Simulations suggest that a 10% shock in oil, food and fertilizer prices may reduce Africa’s annual GDP by $7 billion. Actual impacts are likely to be higher since oil, food and fertilizer prices increased by larger shares, at 40%, 18% and 55%, respectively, in 2022.

Global commodity price increases also prompted an increase in interest rates in high-income countries, which in turn triggered capital outflows, exchange rate depreciation and higher borrowing costs for many African countries. The magnitude of an individual country’s impacts varies based on commodity dependence, financial openness, and domestic vulnerabilities.

The conflict may have exacerbated the impact of the Covid-19 pandemic on the deterioration of Africa’s macroeconomic and social performance. The overlapping crises have slowed Africa’s development progress and risk long-term “scarring” effects. In 2022, 18 million new poor people were added to the 546 million Africans already living in poverty, and one out of five Africans faced high levels of food insecurity. Women and vulnerable groups also tend to be disproportionately impacted by shocks.

Wheat and fertilizers

In Kenya and Egypt, for example, Russian and Ukrainian wheat once accounted for as much as 85% and 67% of wheat imports respectively. Fertilizers, vital for agriculture, have also become scarce and expensive. Egypt, Ethiopia, Morocco, Senegal, and South Africa sourced 11%–41% of their fertilizer imports from Russia and Ukraine. As a result, food prices have soared, pushing millions into food insecurity.

Energy bills have surged, putting pressure on national budgets and household finances. Fuel prices in some countries have more than doubled, forcing governments to pass costs onto consumers or risk bankruptcy. The economic strain has also forced many African families to cut spending on once-affordable essentials, with the most vulnerable populations being hit the hardest.

In West Africa, the situation is the same. The economic crisis in Nigeria has been substantially driven by the conflict, which has had an impact on the costs of important commodities as well as everyday living expenses. The Russia-Ukraine conflict has led to shortages in fertilizer availability, leading to high prices of fertilizer. Likewise, prices of major food commodities, such as maize, rice, wheat and cooking oils, have been on the rise. This has exposed the country’s vulnerable agrifood system and weakened the local currency, leading to foreign exchange shortages and high inflation rates.

According to a Global Agricultural Information Network report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture, Nigeria is spending more on wheat imports amid high global wheat prices. The situation has negatively impacted Nigeria’s wheat supply value chain. More importantly, official records showed a drastic reduction in durum wheat imports from Russia in 2022. Russia was one of the country’s primary sources of cheap wheat.

Grain deal collapse

The issue of supply disruption has a direct link with the Black Sea grain deal that collapsed. The deal, which was initially brokered by the UN and Türkiye in July 2022, was meant to facilitate the export of Ukrainian grain, such as wheat, corn and sunflower products, to world markets, primarily to poorer countries.

In exchange for allowing the shipments of Ukrainian grain, Moscow was promised that Western sanctions would be lifted from its own agricultural exports. A year after it was struck, Russia had to abandon the deal, arguing that it was still unable to get any of its grain or fertilizer out to world markets and that the West had completely ignored its end of the bargain.

Additionally, Moscow noted that more than 70% of the shipments under the initiative had failed to reach poor countries, especially in Africa, and were instead delivered to wealthy nations.

Russia then announced it would deliver free grain directly to African countries, in order to help with food security. In July 2023, during the Russia-Africa summit in St. Petersburg, President Vladimir Putin pledged to provide free food assistance to six African countries, and Moscow had successfully completed delivery of 200,000 tons of food aid by February 2024.

Oil and gas

On the oil and gas market, Nigeria’s National Oil Company NNPC Limited affirmed that the crisis has affected the supply chain of Nigeria’s energy outlook. Maryamu Idris, executive director, Crude & Condensate, NNPC Trading Limited, said in a November 2023 panel presentation at the Argus European Crude Conference in London, that in addition to the substantial price shocks impacting commodity and energy prices globally, the conflict between Russia and Ukraine has triggered a situation where India, a primary destination for Nigerian crude oil increased its appetite for discounted Russian barrels to the detriment of some Nigerian volumes.

“To illustrate the extent of this shift, Nigeria’s crude exports to India dwindled from approximately 250,000 barrels per day (bpd) in the six months preceding the February 2022 invasion of Ukraine to 194,000 in the subsequent six months afterwards. And so far, this year, only around 120,000 bpd of Nigerian crude volumes have made their way to India,” she said.

What’s next?

Now that the prospect of peace is here, it looks portent that the African economy will be revived to a more positive direction.

What is even more significant is the prospect of the American acceptance to the new reality of the multipolar world. Saudi Arabia, not Belgium or France or the United Kingdom, was chosen for talks between the US and Russia. Under President Donald Trump, the US is indicating its disconnect to the old order where everything starts and ends in the West. This, however, remain somewhat twisted, considering Trump’s unfavorable stand against the BRICS.

The fact is, Africa will be better with the new multipolar order. Most of the current multilateral institutions were created before many African states gain their independence. The United Nations, International Monetary Fund, World Bank, World Trade Organization, SWIFT Payment system, etc. were all created, engineered and controlled by the Western powers, often deployed at the detriment of African progress.

These institutions help in strengthening the unipolar system, with the US as the leader of hegemony, supported by the European Union. These institutions have long been tagged as the neocolonial assets used in shortchanging the African continent on its valuable resources, weakening the growth and development of the entire continent through unfair treatment and practices.

More balance needed

Hence the quest for Africa is to have a new, more balanced international system.

Africa has long demanded to be a permanent member of the UN Security Council, several promises were made by the US and other powers, yet nothing was granted. Africa requested enough trade to fund its infrastructure, healthcare and education programs that will serve the needs of the people, yet the Western powers deem it more appropriate to respond to African demands for equal participation and representation with aid, rather than with mutually beneficial proposals to both parties.

The new peace talks between Russia and the US may open the door for a more equal, balanced and orderly multipolar system that will be formed when Africa is fully aware, independent and at the table. This will help Africa as a continent to push forward its interests within the emerging BRICS multipolar system.

The Global Economy President Trump Wants

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The Global Economy President Trump Wants

Since his entry into the political arena, former U.S. President Donald Trump has been a vocal advocate of economic policies centered on nationalism, protectionism, and strategic trade deals. His vision of the global economy diverges from traditional globalization, emphasizing the primacy of American interests, domestic job creation, and a recalibrated approach to trade. Understanding the global economy that Trump envisions requires an examination of his policies on trade, manufacturing, international alliances, and financial markets.

One of Trump’s defining economic strategies has been protectionism. He argues that the U.S. has been disadvantaged by unfavorable trade deals, often blaming previous administrations for allowing foreign competitors to undermine American industries. Central to his economic vision is renegotiating trade agreements to ensure what he perceives as a more balanced playing field.

The United States-Mexico-Canada Agreement (USMCA), which replaced the North American Free Trade Agreement (NAFTA), serves as a key example of Trump’s desired trade framework. The agreement sought to bring manufacturing back to the U.S. by increasing labor protections and requiring higher domestic content in auto production. Additionally, Trump’s administration imposed tariffs on Chinese goods, arguing that they were necessary to curb unfair trade practices, intellectual property theft, and the trade deficit with China.

A second Trump presidency would likely see an expansion of tariffs, particularly targeting China and other nations perceived as threats to American manufacturing. The global economy under such a framework would shift towards more bilateral agreements, reducing dependence on multilateral trade organizations like the World Trade Organization (WTO).

Trump’s economic vision prioritizes revitalizing domestic manufacturing. He has long championed policies aimed at bringing production back to American soil, criticizing companies that outsource jobs to countries with lower labor costs. His administration’s tax cuts and deregulation were designed to incentivize domestic investment and manufacturing growth.

A global economy under Trump’s vision would see the U.S. continue efforts to decouple from Chinese manufacturing. This could involve expanded incentives for American companies to produce domestically and greater scrutiny of supply chains reliant on foreign materials. While this approach may boost certain industries, it could also lead to higher production costs and consumer prices, disrupting global supply chains.

Trump has often questioned the value of international alliances and institutions, preferring a transactional approach to diplomacy. His skepticism towards NATO, the United Nations, and trade blocs like the European Union stems from a belief that such organizations place disproportionate burdens on the U.S. while benefiting other nations.

His global economic vision would likely reduce U.S. involvement in multilateral agreements in favor of bilateral negotiations that offer direct economic advantages. A second Trump term could see reduced American financial contributions to international organizations and greater pressure on allies to shoulder more economic and military responsibilities. This could create a more fragmented global economy, with the U.S. shifting focus away from traditional alliances and towards strategic partnerships that align with his “America First” ideology.

Trump’s economic policies have generally favored deregulation and tax cuts as tools for stimulating business investment and stock market growth. His administration implemented corporate tax cuts that, while boosting economic growth in the short term, also increased the national deficit. If given another term, Trump would likely pursue additional tax reductions and regulatory rollbacks, particularly in industries such as energy, finance, and technology.

A Trump-led global economy could also see a shift in monetary policy expectations. Trump has previously criticized the Federal Reserve for maintaining high interest rates, arguing that lower rates would stimulate economic expansion. While the Federal Reserve operates independently, pressure from the White House could influence economic sentiment, particularly regarding inflation control and fiscal stimulus.

To conclude, the global economy that Trump envisions is one characterized by protectionism, economic nationalism, and reduced dependence on multilateral institutions. His approach prioritizes American manufacturing, renegotiated trade deals, and a selective approach to international alliances. While this vision may bolster domestic job growth and industries in the short term, it also risks economic fragmentation, strained international relationships, and potential increases in consumer costs. Whether such an approach will lead to long-term economic prosperity or geopolitical instability remains a subject of debate among economists and policymakers worldwide.

Walk ways

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Walk ways
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