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Editor's Note  
 

Battling for Commerce History, Yet Pieces of Same Future Puzzle

 

 

 

The first Chamber of Commerce in the world was founded in Marseilles, France, at the beginning of the second half of the 16th Century. After spreading to European and other countries, the concept of a chamber of commerce reached Ethiopia almost 400 years later.
 

This was precisely in 1943. The need to establish a chamber of commerce basically emanated from the economic predicament which the country was experiencing in the immediate aftermath of the five-year Italian occupation. Essentially, the scarcity of cotton, yarn, and wool was believed to be the main reason for the establishment of the chamber in the country.
 

Four years after the movement towards this establishment, the then government issued a charter in 1947 to legally set up the chamber as an important institution. Thus the first Chamber of Commerce in the history of Ethiopia was born as the “Addis Abeba Business Operators,” pursuant to General Notice No.90/47
 

The history of the chamber in Ethiopia is a bone of contention between the Addis Abeba and the Ethiopian chambers.
 

The Addis Abeba Chamber of Commerce and Sectoral Association (AACCSA) claims that it was established in 1947 through proclamation, and is the oldest and largest chamber in Ethiopia with over 9,000 registered members. This assertion is made considering the year the Addis Abeba Business Operators was established.

 

The Ethiopian Chamber of Commerce and Sectoral Association (ECCSA), however, does not accept this assertion. In fact, it has a different version of the genesis and evolution of Chamber of Commerce in the country.

 

The conflict which arises out of the claim for history stems principally from this.
 

ECCSA states that the Addis Abeba Business Operators was renamed in 1971 as the Ethiopian Chamber of Commerce (ECC), which had branches in Asmara, Dire Dawa, Jimma, Gonder, and Nazareth, from which ECCSA originated. Thus, this makes it (ECCSA) the oldest chamber in the country, according to its claim.
 

If this is true, then this would make ECCSA the nation’s foremost private sector representative in leading and improving the business environment in the country by providing feedback to the government on the impediments facing the private sector; improving the private sector through entrepreneurial development and providing business information; and by organizing seminars, trainings and exhibitions. 
 

However, in all aspects, the chamber seems to have been outshined by the Addis Abeba chamber.
 

Although the current discord between the two chambers on the history battle seems to emanate from another area that has contributed greatly to deepening the roots of their contention.

 

It is an issue far removed from that of the claim to history.
 

The present problem of the two chambers stems further from the claim for history.
 

In 2003, Parliament approved a bill that turned into Proclamation No.342/2003. This law enforces that the Ethiopian Chamber of Commerce to be made up of representatives from the Regional Chambers of Commerce and Sectoral Associations and the National Sectoral Associations. The voting power of the regional chambers is determined by the amount of membership each has.

 

According to the proclamation, the Ethiopian Chamber of Commerce and Sectoral Association (ECCSA) should have 300 council members representing Regional Chambers of Commerce and Sectoral Associations, National Sectoral Associations and City Chambers of Commerce and Sectoral Associations.
 

Almost four years after the new proclamation, the Ethiopia Chamber of Commerce held presidential and board elections on March 27, 2007.
 

A day before the establishment of the national chamber, 27 sectoral associations organized at national level to establish the Ethiopian Sectoral Associations.
 

Among the very recently formed 11 Regional Chambers of Commerce and Sectoral Associations, the Amhara Chamber of Commerce and Sectoral Associations registered the highest membership of 38,177 from 14 chambers of commerce, and more than 160 sectoral associations. The Oromia Chamber of Commerce and Sectoral Associations had the second highest with 20,000 members.

The Addis Abeba Chamber of Commerce and Sectoral Association, the most active chamber in the country, registered 9,000 members.

As a result, the Addis Abeba Chamber of Commerce lost its position as president of the National Chamber. For long, the president of the Addis Abeba Chamber of Commerce had enjoyed the presidency. However, this time the situation has changed and it seems that the city chamber will have very little chance of controlling the rudder at the national chamber. The AACCSA accuses the Amhara Chamber of Commerce and Sectoral Association for having brought a highly exaggerated number of members.
 

Compared to the Addis Abeban chamber, the national chamber is small in terms of its staff and resources, but is struggling to handle huge donor-funded huge, such as the Public Private Partnership Forum and the Entrepreneurship Skill Development Programme. Its flagship activities is the national business agenda, a programme designed to identify bureaucratic bottlenecks affecting the private sector and to lobby government to address them.

Here as well, the two chambers do not have good communications; AACCSA, which has already entrenched communications with the donor community in the capital, has secured a good sum of money, over 2.5 million dollars from the Swedish International Development Agency (SIDA) for the study of the Ethiopian Company Register Project. However, ECCSA argues that AACCSA should hand over the project. This case has been brought before the Ministry of Trade and Industry (MoTI) for settlement. It has even reached the donor, though the project is still currently in AACCSA’s hands.
 

Another problem attached is the situation where the city chamber was intended to go though the national chamber in connection with any international communication.
 

Should the claim to history hinder the two chambers from working in cooperation? Why should the city chamber communicate with international organizations through the national one? What is wrong with a city chamber taking care of a project at national level if the national chamber was unable to handle the project?
 

These are some of the questions that need answers.
 

AACCSA which has been coordinating several international trade fairs, bazaars and exhibitions should be applauded for its activities over the past several decades. The recent 13th International Trade Fair that it organized is a testimony of its international hosting success.  ECCSA, as a national chamber, should appreciate the effort exerted by AACCSA in that regard and encourage the metropolitan chamber to continue the good work. It should rather work in close partnership with AACCSA, as failure to learn from AACCSA could be costly like, for example, what ensued a few months back where ECCSA organized a bazaar and incurred over a million Birr loss.

 

Instead of competing for seniority and prominence, the two chambers should rather focus on what holds them together than what keeps them apart. 
 

The city chamber should fit into the national one’s structure and strive for the protection of its interest, while at the same time contributing to the national chamber’s interest. Likewise, ECCSA should focus on how best to use AACCSA (considering its experience) in a way that benefits both and all other chambers in the country. Instead of striving to  keep AACCSA as just one of the regional chambers under it, ECCSA should recognize that the city chamber can play an important role and thus should be given the mandate to handle local or international matters on its own.

 

Likewise, AACCSA should cooperate in the implementation of the SIDA funded project in collaboration with ECCSA. The battle for control of the project may end up frustrating the donor, who could then possibly abandon both chambers.

 

After all, where was ECCSA when SIDA was evaluating chambers for their strengths to run the project?
 

In this globally competitive world, and what with the financial meltdown, funds are not as easily available as they used to be. A failure to handle donors carefully would have lots of unwanted consequences. ECCSA should not undermine the impact of ruining relations with SIDA. What would be better appreciated is if both chambers cooperate, instead of fighting one another.

AACCSA, in turn, should recognize the national chamber as one which embraces all other chambers, including itself [AACCSA].
 

Taking into consideration long history of promoting and protecting the causes, interests, rights and benefits of the business community - at least that is what it claims - AACCSA should therefore play a meaningful role in strengthening the other chambers in the country.
 

But that cannot be done without resolving its problem with the national chamber.


The battle for dominance should instead be a battle to claim the future.
 

The past should be left to historians.

 
 
 
 
   
   
   
 

 

 

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