Department of Business Management

Permanent URI for this collectionhttps://repository.mu.edu.et/handle/123456789/117

Browse

Filters

20252

Settings

Has files: YesSubject: search.filters.subject.challenges

Search Results

Now showing 1 - 2 of 2
  • Item
    RISK AND OPPORTUNITIES of CHINESE CONSTRUCTION COMPANIES IN ETHIOPIA
    (Mekelle University, 2025-12-28) LIU ZHONGHUA
    This research investigates the risks and opportunities faced by Chinese construction companies operating in Ethiopia’s rapidly expanding infrastructure sector. The study adopted a qualitative case study approach complemented by questionnaire surveys and interviews with key informants, including project managers, company executives, government officials, and local contractors. A descriptive research design was applied to analyze the complex political, economic, operational, and socio-cultural environment in which these companies operate. The findings indicate that Ethiopia’s political and policy framework generally supports infrastructure development through government reforms and investment incentives. However, frequent regulatory changes and localized security concerns introduce operational uncertainties. Economic and financial challenges—such as inflation, foreign exchange restrictions, currency devaluation, and inconsistent tax and customs enforcement—significantly impact project costs, cash flow, and procurement processes. Operational difficulties primarily involve language barriers, skill gaps among the local workforce, complex labor laws, and site-specific security risks. Despite these challenges, Chinese firms are actively implementing workforce localization strategies through training programs and increased employment of Ethiopian laborers. Significant opportunities exist due to Ethiopia’s growing infrastructure demand, favorable government incentives, and bilateral cooperation under the Belt and Road Initiative, which provides access to financing and policy support. The research highlights the importance of continuous risk monitoring, proactive engagement with local stakeholders, and strengthened collaboration with local subcontractors and suppliers to ensure sustainable project success and socio-economic benefits. Additional recommendations include enhancing local contractor capacity, improving policy transparency, and promoting structured technology and skills transfer initiatives.
  • Item
    Cash Flow Management Practices and Strategies a Case Study of Selected Chinese Companies Operating In Ethiopia
    (Mekelle University, 2025-12-28) Cai Renjin
    This thesis investigates cash flow management practices and strategies among Chinese companies operating in Ethiopia, with particular focus on the manufacturing, construction, and infrastructure sectors where Chinese investment plays a critical role. The study adopts a descriptive research design and employs a census approach, covering 15 selected Chinese companies that are actively operating in Ethiopia. Data were collected from 45 respondents, comprising financial managers, accountants, and operational staff, using structured questionnaires, interviews, and document review. The findings indicate that Chinese firms in Ethiopia face significant cash flow challenges arising mainly from external factors, including delayed value-added tax refunds and government payments, foreign currency shortages, exchange rate volatility, and infrastructural inefficiencies. Internally, operational inefficiencies, delayed receivables, and supply chain disruptions further intensify liquidity fluctuations. These challenges disrupt operational continuity, increase financing costs, constrain investment capacity, and strain relationships with suppliers and employees, ultimately affecting firm sustainability. Despite these constraints, Chinese companies adopt various coping strategies, such as maintaining liquidity reserves, negotiating flexible payment terms, relying on internal financing, hedging foreign exchange risks, and utilizing technology to enhance cash flow forecasting and control. Effective coordination between headquarters and local management is also found to be essential in adapting corporate financial policies to Ethiopia’s financial and regulatory environment. The study concludes that while Chinese companies benefit from strong financial capacity and operational experience, they must continuously adapt to Ethiopia’s complex financial and regulatory landscape. Accordingly, the study recommends improving cash flow forecasting practices, strengthening stakeholder engagement, diversifying funding sources, optimizing internal operational efficiency, managing foreign exchange risks, and enhancing financial and policy frameworks to support sustainable foreign investment in Ethiopia.