College of Business and Economics

Permanent URI for this communityhttps://repository.mu.edu.et/handle/123456789/38

Browse

Now showing 1 - 20 of 39

Assessment on the Practices and Challenges of Humanitarian Supply Chain Management in the case of International Rescue Committee Ethiopia (IRC)
(Mekelle University, 2020-07-25) Rigat Gebretinsae
The effectiveness of humanitarian supply chains is critical for ensuring the timely and equitable delivery of aid to populations affected by crises. This study examines the practices and challenges of supply chain management within the International Rescue Committee (IRC) Ethiopia, focusing on procurement planning, inventory utilization, warehousing, and distribution. Primary and secondary data were collected through structured interviews, observations, and reviews of organizational reports and standard operating procedures, with analysis conducted using SPSS. Key findings reveal significant issues in procurement planning, including inaccuracies in specifications, pricing, and delivery timelines, which lead to unutilized inventory and reduced supply chain efficiency. Although the IRC demonstrates strong practices in warehousing and distribution, these are often dependent on timely inputs from program teams. Additionally, while inventory utilization is generally effective, leftover stock at the end of projects highlights areas for improvement. The study recommends enhancing procurement planning processes, implementing accountability tools, optimizing inventory utilization, strengthening coordination between warehousing and program teams, increasing senior management oversight, and investing in technology to improve forecasting and inventory management. By addressing these challenges, the IRC can further enhance its supply chain efficiency, ensuring resources are used effectively to support its humanitarian mission. This research contributes to the field by offering evidence-based recommendations for improving the resilience and performance of humanitarian supply chains, particularly in resource-constrained environments like Ethiopia.
THE EFECT OF WAR ON SOCIO-ECONOMIC SITUATION ON LOW INCOME HOUSEHOLDS IN MEKELLE: CASE OF AYDER SUBCITY
(Mekelle University, 2024) Beriha Kiros
The world has witnessed and experienced conflicts in several forms, and this has enormously subjected humanity in untold suffering and unprecedented levels of destitutions and deprivation encountered by those who are directly or indirectly affected as a result. Sub-Saharan Africa, for instance, is a region highly plunged into conflicts because of either weak institutional governance structures put in place, or the manipulation of the system by the few ruling elites and their associates to retain and maintain power perpetually. This thesis examines the influence war on socio-economic low-income households in case of Tigray the resident of Ayder sub City. It is worth noting that, Ethiopia and Tigray had been engaged in armed conflicts that lasted Three and above years (2020-2023). The study used sequential exploratory research design, Purposive sampling to select study area, yemane formula to determine sample population. Both primary and secondary data was taken. Questionnaire, focus group discussion and key informant interview were applied to collect data. Data was analyzed using qualitative and quantitative methods. Bar graph, pie charts, table was used to present the data. Findings were presented via percentage, frequency, mean and standard deviation. The results obtained from the thesis indicate that, the majority of Tigraians nationalist have experienced various armed conflicts fought between Ethiopia and Tigray region resulting into general insecurity and therefore, School destruction, health facilities water and sanitation lack of electric access and consequence on humanitarian and infrastructure and also disruption of basic service delivery to the people on low income households in to Mekelle - Ayder sub city. Additionally, armed conflicts caused an immense destruction of both Social and economic Situation, and therefore rendering the economy of the country/region weak, and the civil population into a state of destitution and impoverishment because their means of survival are either destroyed or left behind due to insecurity. Accordingly it is recommended that, The Devastation caused by the war in the economic and social situation as a country/region of the city low income HHs, mostly the youngest people like the age from 31- 40 years old was affected by the war. The warring parties in armed conflicts should not convert developmental facilities such as schools and Health institutions into military and displaced people barracks, which are used to deliver basic service to the population and by so doing frightened workers who are supposed to manned these facilities, and therefore resulting into abandonment of these professions.
DETERMINANTS OF LOAN REPAYMENT PREFORMANCE OF RURAL SAVING AND CREDIT COOPERATIVE MEMBER BORROWERS IN CASE OF TSAEDA EMBA WOREDA, TIGRAY, ETHIOPIA
(Mekelle University, 2024-01-25) GEBREHAWERIA ALEMU ARAIA
Rural Savings and Credit Co-operatives (RuSACCOs) are cooperatives of financial institution that are owned and controlled by members for the purpose of encouraging members for saving and using the pooled fund to give loan to its members for their short and immediate financial need and as startup capital for small business. There are many demographic, socio-economic and institutional factors influencing loan repayment in the RuSACCOs, and other community based financial institutions. The study was aimed to identify the determinant factors for loan repayment performance of Rural Savings and Credit Co-operatives (RuSACCOs). This study was conducted with the objective of analyzing and identifying the determinant factors for loan repayment performance of rural savings and credit co-operatives (RuSACCOs). To achieve this objective, primarily data were collected from 424 randomly selected member borrowers (334 defaulters and 90 non-defaulters) by using semi-structured interview. For the data analysis, descriptive statistics including frequency, percentages and graph were used to describe the socio-economic characteristics of the member borrowers, institutional factors. Moreover, multicollinearity, correlation and chi-square analyses were employed to fulfil the assumption of binary logistic regression and compare the defaulters and non-defaulters’ group. Binary logistic regression was also, used to identify the determinant factors of loan repayment performance. The analysis found that six explanatory variables; marital status, family size, education, provision of training, follow up/supervision and model of lending become significant variables at 5% significance level. One of the assumptions of binary logistic regression was run to identify which of the independent variables significantly determine loan repayment performance. The omnibus Tests of model coefficients gives an overall indication of how well the model performs; the result obtained when none of the predictors are entered into the model. This is referred to as a „goodness of fit‟ test and indicated a highly significant value.
PROSPECTS AND CHALLENGES OF MICRO AND SMALL MANUFACTURING ENTERPRISES: THE CASE OF MEKELLE CITY
(Mekelle University, 2024-01-25) KEYRAT MOHAMMEDBIRHAN LILAY
This study was intended to investigate the challenges and prospects of the micro and small manufacturing enterprises. The purpose (reason) why the researcher intended study (investigate) the problems were in order to solve the challenges encountered and also so as to eradicate poverty by expanding & encouraging or creating so many enterprises. Note that when the researcher tries to describe the question who did what? The researcher should do (accomplish) so as to identify the problems that affect the performance of MSMES and then the government expected to fulfill the gap and then preparing a conductive loan facility, rendering suitable working place and providing market linkages and so on. Both primary and secondary sources were used in generating valuable and relevant data, 416 are taken as target population of the study & the researcher used 204 samples of the micro and small manufacturing enterprises were selected using a stratified random sampling technique, from which the required data generated and analyzed employing the descriptive research design. This study both qualitative and quantitative research (a mixed approach) that attempts to accumulate existing information. The finding reveals that the majorities of respondents have low educational status and shortage of marketing skill and information. Furthermore, uncertain nature of the market & lack of market information, shortage of working capital and collateral requirements are found as a general challenge to entrepreneurs of the MSMEs in the study area. To conclude financial, marketing and working premise constraints are major constraints. Based on the major findings some recommendations are drawn. The Mekelle city Administration official would be responsible to provide affordable alternative sources of finance by dealing with responsible bodies (banks and other credit institutions) and better to provide additional market opportunities by making linkage with public project and advertising their product and also to enhance the capacity and skill of the operators through continuous training experience sharing from successful enterprises.
Challenges and Opportunities of Honey Market in Tigray: In the Case of Kilte Awlaelo Woreda
(Mekelle University, 2024-01-25) Yukum G/Michael Desta
The honey market in Kilte Awlaelo Woreda, Tigray, presents both significant challenges and promising opportunities for local beekeepers. This study assesses the current status of the market, identifies key barriers to its development, and explores potential avenues for growth. Employing a mixed-methods approach—including surveys, interviews, focus group discussions, and field observations—the research highlights major constraints such as a shortage of skilled labor, poor post-harvest management, inadequate extension services, and market-related issues like price instability and limited access to profitable markets. These factors hinder the productivity and economic viability of the honey sector in the region. Despite these obstacles, the study identifies substantial opportunities for market expansion. Growing demand for honey, the region’s rich biodiversity, and potential for international trade create a strong foundation for industry growth. If properly harnessed, these opportunities can transform the honey market into a more efficient and profitable sector. To address the existing challenges and maximize market potential, the study recommends targeted interventions, including capacity-building initiatives, improved infrastructure, enhanced market linkages, and stronger collaboration between stakeholders. Additionally, it emphasizes the need for further research to develop sustainable strategies that will support the long-term growth of the honey industry in Kilte Awlaelo Woreda and contribute to the broader economic development of Tigray
DETERMINANT OF LENDING RATE FOR COMMERCIAL BANKS IN ETHIOPIA: CASE OF SELECTED PRIVATE COMMERCIAL BANKS
(Mekelle University, 2024-09) SELAMAWIT GEBREEGZIABHER HAGOS
This study examines the determinants of lending rate in Ethiopian private commercial banking sector. The study used panel data collected from annual reports of nine private commercial banks operating in Ethiopia during the period 2013 - 2022. Accordingly, the lending rate of commercial banks is determined by bank, industry and macro-economic related factors. A quantitative research approach and explanatory design were adopted in carrying out this research. Secondary data were collected from annual audited reports of selected private commercial banks using purposive sampling technique. The study employed descriptive and econometric estimation techniques to analyze the influence of bank, industry and macroeconomic factors on lending rate. The analysis conducted using the econometric package STATA V.13. The study revealed that credit risk and market share have a positive and significant impact on bank lending rate; whereas, operating cost, reserve requirements and liquidity risk have a negative and significant effect on lending rate. However, bank size and inflation are not significant determinant of lending rate. The study recommends commercial banks to improve operational efficiency and effectiveness.
Assessment of Challenges and Opportunities of Private Investment in Garment &Textile Firms :( A Case study inMekelle City)
(Mekelle University, 2024-09) ZenebuFitsum
Many Private investments in manufacturing have played their roles to employment creation and poverty alleviation of wider group of the society in general and urban youth in particular.However these sectors have been bound with various complicated and interlocked constraintsThe purpose of this study is thereforeto investigate the opportunities and challenges of private investment in Mekelle citywith particular emphasis to the garment & textile sector. Clear understanding of these will enable to harness the potential benefit and to face the challenges that hindered their growth. The study has used both primary and secondary data source.The target populations of the study were investors & owners involved in the private investment of the garment and textile sector and government officials in the study area. By stratifying the investment stage, samples were selected by employing proportional stratified sampling technique and 188 questionnaires were distributed; out of which 166 were returned. An interview is also conducted with 20 respondents: 10 selected from operators/owners and 10 from investment officials. Data gathered were analyzed based on these 166 responses using SPSS 20 software package. Descriptive research design was employed and Outputs were reported using frequency, percentage and mean results. The findings indicated that even though the investment environment in such sector is improving, still there are problems in the area of financial access, inadequate infrastructure, production inefficiency, influx of smuggled goods, and forex shortages that hinder their growth.These sectors have bright prospects if action is taken by the government. To benefit from opportunities and overcome its challenges, government should control smuggled goods and supportand facilitate these sectors to modernize and further increase their production capacity and enhance human resource capacity through training and working capital.Hence, to promote the performance these sectors, it is essential to take measures that can improve real income of people, and make public investment in basic infrastructures and institutions that are crucial to attract private investment. Besides, ensuring stable investment environment and macro-economic and political stability are necessary to build lasting confidence of privateinvestors.
DETERMINANTS OF EFFECTIVNESS OF RISK MANAGEMENT in PRIVATE COMMERCIAL BANKS IN ETHIOPIA.
(Mekelle University, 2024-09) KIROS WELDU
Banks and other financial institutions usually play a significant intermediary role between borrowers and lenders for the progress of a stable and healthy economy of a nation. In Ethiopian banking industry Commercial banks are the most dominant banks categorized as public and private banks. This study was designed to examine the relationship between risk management effectiveness and its determinants in private commercial banks. Capital adequacy was used as a proxy for risk management effectiveness in commercial banks. Ten explanatory variables namely bank specific factors (credit risk, liquidity risk, profitability, bank size, operating effectiveness, market risk) and Macroeconomic factors (GDP growth, inflation, lending interest rate and exchange rate) were used as independent variables. From the total population of 16 private commercial banks purposive sampling technique was used to select eight private commercial banks in Ethiopia. Secondary data were used to estimate the relationship between independent variables and capital adequacy ratio of banks. Balanced panel data set of ten fiscal years was collected from the audited financial statements of selected private banks in Ethiopia for the period of 2012 – 2022. Both descriptive statistics and econometric model was employed where descriptive statistics were used to describe the variables. In a panel regression analysis random effect model was used to determine the effect of bank specific and macroeconomic variables on risk management effectiveness of banks. The regression result shows that credit risk has negative impact where Bank size and profitability has a positive effect on risk management effectiveness in private commercial banks. The macroeconomic factors have positive effect on risk management effectiveness of private banks where exchange rate has a significant effect. The study concludes that risk management effectiveness of banks is highly determined by bank specific and macroeconomic factors and private commercial banks are recommended to introduce risk based control systems in overall banking system operations and Businesses.
DETERMINANTS OF LOAN DEFAULT IN LEASE FINANCING A CASE OF DEVELOPMENT BANK OF ETHIOPIA
(Mekelle University, 2024-09) BELAY TAFESSE
This study identifies determinants of lease loan default, including Lessor related, Lessee related and external factors, on lease loan default. The aim of this research was to examine determinants of lease loan default; there is a causal relationship between each factor and lease loan default. The study utilizes primary data collected through a close-ended questionnaire. The study presents the results obtained from 75 survey questionnaires completed by customers of selected districts of DBE. To present and describe the respondents' demographic characteristics, descriptive data analysis using tables was employed. For examining determinants of lease loan independent variable (Lessor related, Lessee related and external factors) on the dependent variable (lease loan default), an explanatory research design is adopted, employing regression analysis. The collected data is analyzed using descriptive statistics, correlation analysis, and regression analysis through SPSS software. The correlation analysis reveals a Moderate association between Lessor related factors, Lessee related factors weakly related with External factors and lease loan default (r=0.534, 0.0.617, and 0.0895 respectively, p<0.01). The regression result found that independent variables such as lack of credit monitoring, appraisal, KYC and longer lease processing time, lack of educational literacy, managerial experience and inappropriate business location, political instability, foreign currency fluctuation and inflation, significantly and positively influence lease loan default. Therefore, these factors primarily determine the lease loan default in Development Bank of Ethiopia. Therefore, the Development Bank of Ethiopia should prioritize improving its operations to mitigate the risk of defaults and consider location-based risk assessments when extending leases to lessees, particularly in regions with less favorable economic conditions. It is also crucial for DBE to factor external influences when assessing credit risk and designing lease agreements, and government and policy makers should have to maintain external factors in order to have sound finance through lease.
DETERMINANTS OF LIVELIHOOD DIVERSIFICATION AND ITS IMPLICATION ON VULNERABILITY OF PASTORAL AND AGROPASTORAL COMMUNITY IN AFAMBO WOREDA OF AFAR REGION, NORTHEASTERN ETHIOPIA
(Mekelle University, 2024-10-20) ABNET SISAY TESHOME
Livelihood diversification has been recognized as a tool to cope with economic shocks and reduce vulnerability. This paper focused, identifying the current livelihoods strategy, determinant factors of livelihood diversification, major constraints of livelihood diversification, and the effects of livelihood diversification to reduce vulnerability of pastoral and agro-pastoral household in Afambo Woreda of Afar region. The study was followed the multi-stage sampling procedure with a sample household of 351 of these 139 from pastoral and 212 from agropastoral households. Quantitative and qualitative data types was collected using structured survey questionnaires. Both descriptive statistics and inferential statistics were used for interpretation of the result. The Simpson index of diversity was computed to investigate the degree of livelihood diversification. The findings of the result showed that both pastoral and agro-pastoral households have medium level of livelihood diversification portfolio with a mean value of 0.579 diversity index which covers 55.56 percent. The range of medium level of livelihood diversity were 4 to 6 livelihood options. The maximum level of diversity index was only cover 19.37 per cent of the households which classified a high level of diversified income sources. The major determinate factors of livelihood diversification were households’ level of income, access to training, provision of livelihood support, family size, years of experience in age and exposure to shocks contributed positively significant at 5% level. While, consumption expenditure, distance to market, land size and dependency ratio were negatively significant at 5% level. The majority of households’ livelihood vulnerability ranges highly vulnerable and moderately vulnerable for both pastoral and agro-pastoralist. Major indicators of vulnerability to shocks and stress include a decline of the pasture lands, death of livestock, reduction of water availability, losses of crop production, food insecurity months and outbreaks of human and livestock diseases. To curve the livelihood diversification challenges, the woreda pastoral development office, local lined sector institutions and Non-governmental development actors should support the pastoral and agro-pastoralists with provision training, provision of livelihood support which would enhance livelihood choices in addition to primary livestock production.
Assessing the Challenges facing External Auditors Auditing Public Enterprises in Ethiopia; the case of Auditors of Audit Service Corporation
(Mekelle University, 2024-11) Feven Antonious
This research explores the major challenges faced by external auditors in auditing public enterprises, specifically focusing on the Auditors of Audit Service Corporation (ASC). Utilizing a descriptive survey research design, the study employs a quantitative methods approach. The quantitative aspect involves the use of structured questionnaires distributed to 95 ASC audit directorate staff whereas 93 questionnaires were returned. Data analysis is conducted using SPSS version 20, presenting results through frequency tables and summary statistics. Key findings reveal significant challenges such as lack of cooperation from management, difficulties in obtaining necessary documentation, complexity of regulations, issues with internal controls, and political influences affecting audit objectivity. Additionally, resource constraints, challenges in assessing risk management practices, and resistance from public enterprises are highlighted. The role of external audit committees, training adequacy, and the impact of technology on mitigating audit challenges are also examined. Results show significant challenges, including resistance from management, difficulties in obtaining documentation, complex regulatory environments, issues with internal controls, and political influences on audit objectivity. The study underscores the need for improved methodologies, regulatory framework changes, and enhanced training programs to better equip auditors in addressing these challenges effectively. Overall, the research provides a comprehensive understanding of the obstacles faced by external auditors in auditing public enterprises and offers recommendations for enhancing the audit process.
Assessment of Tax Audit practice and its Challenges: case study Ministry of Revenue, Mekelle Branch
(Mekelle University, 2024-11) Gibtsawit Bokure
This study tried to assess the practices and the challenges of tax audits with a selected Ministry of Revenue, Ministry of Revenue Mekelle Branch Office. For this end, intending to get the relevant data, this study considered only the audit department staff office and Mekelle city audited taxpayers as the population of the study. As the sources of data, the current study used both primary and secondary sources. To collect primary data, survey questionnaires were used as the methods of data collection. The questionnaires were distributed to 28 tax audit staff respondents, and out of those, 24 were returned. They were also distributed to 105 taxpayers’ respondents; out of those 87 that were returned, the secondary data was from scholarly published studies, internet sources, journals, MOR published, and unpublished documents. The questionnaires were rated at a 5-point scale rate. To analyse the collected data, statistical analysis using SPSS 20 was applied. From the data analysis, it is revealed that comprehensive tax audit was a repetitively performed tax audit type. There is a wellestablished role of tax audit. The tax audit practice of the office has weaknesses in applying IT (information technology). The department applies statistical techniques and an automatic risk scoring system for its audit selection case. The primary purpose of the tax audit in the office is not ensuring tax compliance behaviour but increasing tax revenue collection. There is a problem in the supply of audit resources such as skilled and experienced tax auditors and an organized and suitable office structure. In addition, an inadequate number of auditors, a lack of skilled and qualified auditors, and the unwillingness of taxpayers to present necessary records were some challenges of tax auditing in the office. Based on these findings, it was recommended that the office should have skilled and qualified tax auditors through training, focus on ensuring tax compliance behaviour, and apply different tax audit types. Lastly, it is suggested that the office need to have continuous assessment of the auditor's efficiency and level of tax compliance behaviour enhanced every time.
Determinants of Financial performance of Microfinance institutions (MFIs) in Ethiopia
(Mekelle University, 2024-11) Kibrom Welday
The main objective of this study was to investigate and analyze the Determinants of financial performance in the case of selected micro finance institutions (MFIs) in Ethiopia, with specific emphasis on how Capital to Asset ratio, Firms growth rate, Portfolio at Risk, Operating Efficiency ratio, Age of MFI, real gross domestic product growth, Size of MFI, and Government support affect financial self-sufficiency of the MFIs in Ethiopia. Quantitative research approach was used, and the study included a selected sample of 22 MFIs in Ethiopia covering a time period of nine years from 2015 to 2023 (198 observations). The study employed secondary data collection method and the data were obtained from the financial annual reports of MFIs that were available in the national bank of Ethiopia. Fixed effect was used for the Panel data regression analysis of variables. To test the accuracy of the model, the researcher has employed important classical regression assumption tests. The fixed effect regression model’s result coefficient of determination (R-squared) was 0.706, implying that 70.6% of variation in financial performance is explained by the independent variables used in the study. The result of the study indicated that MFIs’ financial performance is significantly influenced by Capital adequacy ratio; MFIs’ size, MFIs’ growth and Age of MFIs. Whereas, portfolio at risk, operating efficiency, gross domestic product, and government support have no significant effect on financial performance of the selected MFIs in Ethiopia.
FACTORS AFFECTING THE PERFORMANCE OF WOMEN OWNED MICRO AND SMALL ENTERPRISES IN WUKRO TOWN
(Mekelle University, 2024-11-25) MICHAELE GEBREMARIAM
The study was investigated the factors affecting the performance of women owned micro and small enterprises the case of Wukro Town. .The researcher was keen on finding out an in- depth understanding of subjects on the factors affecting the performance of women owned MSEs. That’s why, the study employed mixed approach research design, thereby applying both quantitative (inferential statistics and descriptive statistics) and qualitative data. Stratified sampling and simple random sampling techniques were applied to nominate 362 the women small and micro enterprise owners. Furthermore, purposive sampling was employed to select 3 microfinance managers, five SME experts and 20 women developmental group members. Data were collected through questionnaire, focus group discussion, and interview. The collected data were, then, was tabulated with concise frequency, percentage, and mean descriptions and supported by regression analysis looking into which factor strongly affects women owned micro and small enterprises. According to the findings of the research, most women were found to be uneducated who did not have the necessary skills to run their business effectively. Moreover, the findings indicated that factors like inefficient implementation of government policies and programs, war elated factors, financial factors, technological factors, social and cultural factors were among the contributing factors that heavily affect the performance of women owned factors. In line with this, women had very limited access to loans and getting financial support. Eventually, the researcher recommended that revising existing policies to ensure they are inclusive and specifically address the challenges faced by women owned MSEs by creating targeted programs that provide financial aid, training, and resources tailored to women-owned MSEs, developing comprehensive training programs focused on entrepreneurship skills, financial literacy, and technological proficiency, creating specialized loan products with favorable terms for women owned MSEs Organize workshops aimed at enhancing financial literacy among women owned MSEs to improve their ability to manage finances and access funding, incorporating entrepreneurship education into school curricula, focusing on empowering young women with the skills and knowledge needed to start their own businesses as some of the measures to be taken so as to rehabilitate the performance of women owned MSEs.
EFFECT OF TOTAL QUALITY MANAGEMENT PRATICE ON PERFORMANCE OF BREWERY FACTORY (TheCASE OF DASHEN BREWERY Share Company)
(Mekelle University, 2024-11-25) NIGUSSE KELEMU
This research investigates the impact of Total Quality Management (TQM) implementation on the performance of Dashen Brewery Share Company in Ethiopia, focusing on data collected from 2015 to 2023. This is due to the reason that companies frequently assume QMS practices and ISO certification can improve organization performances. Employing a mixed-methods approach, the study integrates quantitative performance metrics with qualitative insights from management and employee interviews. Financial statements & performance reports are used as secondary data and Questioners & interview are used as primary data. Purposive sampling used to select the interviewees and respondents for the questionnaire. The collected data was analyzed using both descriptive and inferential statistics as well as tested for its significance using SPSS version 20 software. Findings reveal that key TQM practices—such as top management commitment aspect, customer focus, continuous improvement and innovation, employee involvement practices, reward and recognition, effective communication and information systems and Benchmarking—significantly influence performance metrics (p < 0.05), including product quality, operational efficiency, and employee engagement. Despite these positive outcomes, challenges persist, such as insufficient employee involvement, lack of comprehensive training, and limited resources, which hinder the effective implementation of TQM. The research contributes to the body of knowledge by providing empirical evidence of TQM's significance within the Ethiopian brewing sector, offering practical recommendations for organizations seeking to enhance performance through effective quality management strategies.
Credit Sales Risk Management in the Case of Libya Oil Ethiopia Limited
(Mekelle University, 2024-11-28) Eyerusalem Zewge
This research deals with the Credit Sales Risk Management of Libya Oil Ethiopia Limited. The objectives of the research were to assess the management of credit sales risks in Libya Oil Ethiopia Limited. One crucial element that must be controlled is credit sales risk. Credit sales risk management is based on analyzing the creditworthiness of customers and is one of the most central risks for any company. It is caused by a debtor's failure to perform their responsibilities. The research was carried out on Libya Oil Ethiopia Ltd. One of the key elements assessing credit sales risk management is the potential for a customer to default on their payments. By evaluating the current practice, this research aims to propose potential solutions that could address this issue in credit sales risk management. A descriptive type of research method was used in conducting this study. The result of this study evidence that there is a big gap between the current company’s collection policies and procedure and current states of market computation therefore, Libya Oil Ethiopia Ltd has to revise the current policies and procedures in considering the current inflation, compotator and customer status. Trade debt has an impact on the company's performance by lowering its revenue and net income, the case thus supports the idea that the company needs strong credit sales risk management. The study’s findings indicate that setting clear credit sales, collection and receivable management is essential to effectively manage credit sales and improve the company’s performance.
CURRENT STATUS, CHALLENGES AND OPPORTUNITIES OF INTEREST FREE BANKING IN ETHIOPIA
(Mekelle University, 2024-12) TEKLEMARIAM ESTIFANOS
Interest Free Banking (IFB) services offer ethical, Shariah-compliant financial solutions and are gaining popularity in Ethiopia among Muslim and non-Muslim clients. This study examines the socio-demographic profile of IFB clients, perceptions of services among stakeholders, managerial insights, and the operational status of IFB. A mixed-method approach was adopted, utilizing structured questionnaires for quantitative data and interviews with IFB division managers for qualitative insights. Descriptive statistics summarized key findings, while thematic analysis interpreted qualitative responses. The study reveals increasing acceptance of IFB services, driven by their ethical principles, but identifies challenges such as limited public awareness, misconceptions, and economic uncertainties. Clients and employees view IFB as a viable alternative to conventional banking, and managers highlight the need for Shariah compliance, fund segregation, and employee training. Key opportunities includeIX product diversification and digital banking solutions to meet evolving client demands. To unlock IFB’s full potential, the study recommends raising public awareness, fostering community engagement, and investing in innovative financial products and digital services. Strengthening Shariah governance and enhancing operational efficiency are essential to promoting ethical financial inclusion in Ethiopia.
DETEMINANTS OF SELECTED COMMERCIAL BANKS LENDING DECISION IN ETHIOPIA
(Mekelle University, 2024-12) TSEGABRHAN TAJEBE SHESHAY
The main objective of this study was to investigate the determinants of lending decision of commercial banks in Ethiopia. In order to achieve the research objectives, the study used secondary data of 14 state owned and private commercial banks of Ethiopia from 2014 to 2023. The study also used quantitative research approach, descriptive and explanatory type of research design by adopting purposive sampling technique. Bank specific; industry specific and macroeconomic variables were analyzed by using the balanced panel random effect regression model. Eleven variables that affect banks’ lending decision were selected and analyzed. The results showed that bank size, real GDP growth rate, volume of deposit, Return On Asset, Bank concentration were positive and statistically significant while liquidity ratio, exchange rate of birr to dollar, lending interest rate, cash reserve requirement ratio and inflation rate were found to be statistically significant with negative effects respectively on total loans and advanced by commercial banks in Ethiopia. However, credit risk ratio was statistically insignificant with negative effects on commercial banks’ lending decision. Therefore, commercial banks should adjust their lending decision in response to the signals from these factors, such that positive signals like bank size , real GDP growth rate, volume of deposit, Return on Asset and Bank concentration in this study make banks become more favorably disposed to lending.
The Effect of Customer Relationship Management Practices on Customer Satisfaction in the Case of Awash Bank, in Mekelle Branches
(Mekelle University, 2025-01) Kidanemariam Fiseha
In today’s intensely competitive, rapidly changing and highly complex business environment characterized by diminishing customer satisfaction, the need to be market focused and customer centric is more critical than any other time to build and maintain a strong relationship with the customers in order to achieve the ultimate goal of customer satisfactions for any organization. This study aimed to assess the effect of Customer Relationship Management on customer satisfaction in case of Awash Bank, Mekelle City. The population of the present study is premium customer of six special grade branches by using purposive sampling techniques. The data collection utilized quantitative methods. 186 respondents were selected through convenient sampling and data has been collected through questionnaires which were self-administered by researcher. Multiple regression analysis was used to analyze the data collected. The study proposed that there is statistical positive and significant relationship between CRM elements and customer satisfaction as a dependent variable. The statistical analysis revealed that three independent variables, namely reliability, process driven approach and customer focus were found to be significantly associated with the customers’ satisfaction in Awash Bank, while technology orientation found to not have a significant. The findings of the study contribute enormously to the body of knowledge, as it provides a model to be used for explaining effect of the CRM four dimensions on customers’ satisfaction. From the analysis the researcher recommend Awash should give priority for the application of process driven approach CRM dimension than other dimensions because this dimension has highest effect on customer satisfaction.
FACTORS AFFECTING PASSENGERS’ PURCHASE DECISION IN AN AIRLINE INDUSTRY: THE CASE OF ETHIOPIAN AIRLINES MEKELLE ALULA ABA-NEGA BRANCH
(Mekelle University, 2025-01) WELDEKIDAN FITSUM
The main objective of this research is to find out the factors that affect passengers ‘purchase decisions of Ethiopian airlines for their Mekelle Alula aba Nega air ticket purchase. It tried to study the factors according to their significance effect on the passengers ‘purchase decisions. The paper also covered to see if the factors have any different effect across the demographic profile of respondents. The study examined seven factors that were taken from prior research works. All responses were collected by using a structured questionnaire through convenience sampling (n=370). The data was collected from primary and secondary data. The research design was both descriptive and explanatory research deigns. The target population was the passengers of Mekelle Alula Aba Nega. Data was analyzed using SPSS software to obtain descriptive statistics, comparing mean scores (i.e. independent t-test and ANOVA) and other analyses (i.e. correlation analysis and multiple linear regressions). According to the study findings, three factors: loyalty program, ground and inflight services and safety record identified as the main factors that customers of Ethiopian airlines perceive to be important in influencing their purchase decision. The finding of the study showed that there is a significance difference in perceiving the seven factors between and among the customers of Ethiopian airlines with different demographic profiles. Therefore, Ethiopian shall work more on its brand equity specially to penetrate the rest of the market besides the African market.