The Challenges And Prospects Of Ifrs Adoption In Ethiopian Commercial Banks

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The Challenges and Prospects of IFRS Adoption in Ethiopian Commercial Banks

Author : Marenesh Abebe
Publisher : GRIN Verlag
ISBN 13 : 3668651590
Total Pages : 72 pages
Book Rating : 4.6/5 (686 download)

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Book Synopsis The Challenges and Prospects of IFRS Adoption in Ethiopian Commercial Banks by : Marenesh Abebe

Download or read book The Challenges and Prospects of IFRS Adoption in Ethiopian Commercial Banks written by Marenesh Abebe and published by GRIN Verlag. This book was released on 2018-03-02 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: Thesis (M.A.) from the year 2018 in the subject Business economics - Accounting and Taxes, grade: 2, Addis Ababa University, course: MBA in Finance, language: English, abstract: The study aims to examine the challenges and prospects of International Financial Reporting Standards (IFRS) adoption in Ethiopian Commercial Banks. To answer the research question and to achieve the objective of the study this paper adopted the mixed research approach. The questionnaire data were analyzed using descriptive statistics and data from interview and document review were interpreted qualitatively. The results show that IFRS adoption in Ethiopian Commercial Banks will result in a number of important benefits to a wide range of stakeholders. The study also found out that with the exception of capital market the other five variables namely need of amending legal and regulatory requirement , volatility of financial position and financial performance , difficulty of obtaining source documents and data ,need of updating the existing accounting software, information system and information technology of the bank, shortage of skilled and competent man power , shortage of strong professional bodies are the key challenges of IFRS adoption in Ethiopian Commercial Banks. Finally the study recommended the relevant commercial code, tax proclamation and NBE directive should be amended by Government organs in consultation with strong professional bodies , establishment of strong professional bodies and capital market, allocation of sufficient financial and other resources by top management , introduction of IFRS in colleges and universities and future adopters should think ahead the required source documents and data as well as ensure the extent of changes needed to update the existing IT infrastructure to satisfy IFRS requirements.

Adoption of International Financial Reporting Standards at Ethio Telecom. Challenges and Prospects

Author : Tofick Shikuri
Publisher :
ISBN 13 : 9783346092373
Total Pages : 72 pages
Book Rating : 4.0/5 (923 download)

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Book Synopsis Adoption of International Financial Reporting Standards at Ethio Telecom. Challenges and Prospects by : Tofick Shikuri

Download or read book Adoption of International Financial Reporting Standards at Ethio Telecom. Challenges and Prospects written by Tofick Shikuri and published by . This book was released on 2019-12-18 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Comparative Studies on Financial Performance of Commercial Banks in Ethiopia. Problems and Prospects

Author : Tarekegn Tamiru Woldesenebt
Publisher : GRIN Verlag
ISBN 13 : 3668870551
Total Pages : 82 pages
Book Rating : 4.6/5 (688 download)

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Book Synopsis Comparative Studies on Financial Performance of Commercial Banks in Ethiopia. Problems and Prospects by : Tarekegn Tamiru Woldesenebt

Download or read book Comparative Studies on Financial Performance of Commercial Banks in Ethiopia. Problems and Prospects written by Tarekegn Tamiru Woldesenebt and published by GRIN Verlag. This book was released on 2019-01-25 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt: Thesis (M.A.) from the year 2011 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: Very Good, Mekelle University, language: English, abstract: The objective of the study was to compare the financial performance of commercial Banks by using their average ratio in terms of profitability, liquidity, efficiency, and solvency. In this study by using excel analyzed information was presented by statistical measures like graphs and tables. Both the trend and comparative financial performance analysis approaches were used. Five years audited financial reports from 2005 to 2009 of the commercial banks were taken for comparison purpose. Those commercial banks taken for comparison were Commercial Bank of Ethiopia, Dashen Bank Share Company, Bank of Abyssinia, United Bank, Wegagen Bank, and Nib International Bank. Year of establishment, amount of capital reserve, and number of branches are taken as a criterion for selecting these commercial banks for analysis purpose. In addition to data gathered from secondary sources, unstructured interview was conducted on problem and prospects related to the financial performance of commercial banks and the responses were presented. The respective ratios of each bank are compared with the average ratios of the six commercial banks taken for the study. Then trend analyses of six commercial banks taken in this study are presented by using the above ratios. In both the financial performance analysis approaches i.e., the trend and comparative analysis, Commercial Bank of Ethiopia (CBE) showed good performance in financial ratios of Profitability, Liquidity, and Solvency ratio, but Bank of Abyssinia(BOA) has showed weak performance in all above explained financial ratios. From this, it is concluded that CBE was profitable and functionally efficient and BOA is less profitable and the earning capacity of the bank is weak. Therefore, in order to improve profitability the management of BOA must increase management efficiency by reducing administrative expenses to the best possible level, efficiently control costs and utilize customers deposit, dispose of the assets which are not contributing for the profitability of the banks and work to maximize the overall profitability of the bank through investing in profitable avenue.

Challenges and Opportunities of Agent Banking in Ethiopia. A Case Study of Awash Bank

Author : Tesfaye Asalfew
Publisher : GRIN Verlag
ISBN 13 : 3346966860
Total Pages : 72 pages
Book Rating : 4.3/5 (469 download)

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Book Synopsis Challenges and Opportunities of Agent Banking in Ethiopia. A Case Study of Awash Bank by : Tesfaye Asalfew

Download or read book Challenges and Opportunities of Agent Banking in Ethiopia. A Case Study of Awash Bank written by Tesfaye Asalfew and published by GRIN Verlag. This book was released on 2023-11-10 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2023 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, Addis Ababa University (School of Commerce), course: Business Leadership, language: English, abstract: This research project was aimed to describe the challenge and opportunities of agent banking adoption in Ethiopian banking industry. In order to achieve the objective of this study and answer the research questions the researcher adopted descriptive research design and mixed research approach. A total of sixty-five (65) questionnaires were distributed of which 53 questionnaires were distributed to Awash Bank East Addis Ababa Region Staffs, Awash Bank Digital Banking Directorate at Head Office and 12 questionnaires were administered to Awash Bank Agents found in East Addis Ababa Region or District. Purposely sampled method was applied to select the respondents and the researcher received sixty-three (63) responses from (65) questionnaires.

Challenges of E-Procurement adoption in a private Bank in Tanzania

Author : Ikandilo Kushoka
Publisher : GRIN Verlag
ISBN 13 : 3656706301
Total Pages : 72 pages
Book Rating : 4.6/5 (567 download)

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Book Synopsis Challenges of E-Procurement adoption in a private Bank in Tanzania by : Ikandilo Kushoka

Download or read book Challenges of E-Procurement adoption in a private Bank in Tanzania written by Ikandilo Kushoka and published by GRIN Verlag. This book was released on 2014-07-31 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research paper from the year 2005 in the subject Business economics - Supply, Production, Logistics, Institute of Accountancy Arusha, course: Supply Chain Management, language: English, abstract: This study is about the challenges of adoption of e-procurement in a private bank in Tanzania, specifically at CRDB bank Plc, Dar es Salaam. The specific objectives were to find out if the procurement officers have necessary skills to facilitate the use of e-procurement, to examine the extent of availability of technological infrastructure to support e-procurement and to identify challenges facing CRDB bank in adopting e-procurement. The research design used was case study and a sample of 20 respondents was used. Data were collected using questionnaire and interview. The analysis of findings was done using descriptive statistics and narrative notes whereby tables and charts were used. Findings of the study showed that CRDB bank has started to procure online recently and for now it partially procures online. IT infrastructure in the bank strongly supports the adoption of e-procurement. Nevertheless, e-procurement has been seen as strategically important and it is driven by management. The bank personnel have the skills needed to cope with the changes. Conclusively, the study shows that the adoption of e-procurement in private sectors particularly in CRDB bank is feasible. The important thing is for the organizations and their managements to take initiatives on how to improve the facilitation of e-procurement. Furthermore, the researcher recommends that managements should make a cost benefit analysis on e-procurement, improve their technological infrastructure, organize trainings for staffs and improve the networks and systems in order to make e-procurement a success.

Existing Share Transfer Mechanism in Ethiopia. Challenges and Benefits

Author : Bahiru Gebeyehu
Publisher :
ISBN 13 : 9783346282811
Total Pages : 100 pages
Book Rating : 4.2/5 (828 download)

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Book Synopsis Existing Share Transfer Mechanism in Ethiopia. Challenges and Benefits by : Bahiru Gebeyehu

Download or read book Existing Share Transfer Mechanism in Ethiopia. Challenges and Benefits written by Bahiru Gebeyehu and published by . This book was released on 2020-10-24 with total page 100 pages. Available in PDF, EPUB and Kindle. Book excerpt:

The Fundamental Principles of Financial Regulation

Author : Charles Albert Eric Goodhart
Publisher : Geneva Reports on the World Ec
ISBN 13 :
Total Pages : 144 pages
Book Rating : 4.:/5 (318 download)

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Book Synopsis The Fundamental Principles of Financial Regulation by : Charles Albert Eric Goodhart

Download or read book The Fundamental Principles of Financial Regulation written by Charles Albert Eric Goodhart and published by Geneva Reports on the World Ec. This book was released on 2009 with total page 144 pages. Available in PDF, EPUB and Kindle. Book excerpt: Analytical background -- Nature of systemic risk -- Who should be regulated (by whom) -- Counter-cyclical regulation -- Regulation of liquidity and maturity mismatches -- Other regulatory issues -- The structure of regulation -- Conclusions -- Appendix : the boundary problem in financial regulation -- Discussion and roundtables.

Banking in Africa: Delivering on Financial Inclusion, Supporting Financial Stability

Author : European Investment Bank
Publisher : European Investment Bank
ISBN 13 : 9286138482
Total Pages : 297 pages
Book Rating : 4.2/5 (861 download)

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Book Synopsis Banking in Africa: Delivering on Financial Inclusion, Supporting Financial Stability by : European Investment Bank

Download or read book Banking in Africa: Delivering on Financial Inclusion, Supporting Financial Stability written by European Investment Bank and published by European Investment Bank. This book was released on 2018-11-21 with total page 297 pages. Available in PDF, EPUB and Kindle. Book excerpt: In its fourth edition, this report focuses on recent developments in Africa's banking sectors and the policy options for all stakeholders. The study of banking sectors across all African sub-regions includes the results of the EIB survey of banking groups operating in Africa. Three thematic chapters address challenges and opportunities for financing investment in Africa: Crowding out of private sector lending by public debt issuance The state of bank recovery and resolution laws in Africa Policy options on how to finance infrastructure development. The report finds that in many African banking markets, the last two years saw a pause in financial deepening. However, a rising share of banking groups report improving market conditions and plan a structural expansion of their operations in Africa and a continued push for new technologies.

Prospects and Challenges of Re-capitalising Commercial Banks in Ghana

Author : Edmund Benjamin-Addy
Publisher : GRIN Verlag
ISBN 13 : 3656245908
Total Pages : 131 pages
Book Rating : 4.6/5 (562 download)

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Book Synopsis Prospects and Challenges of Re-capitalising Commercial Banks in Ghana by : Edmund Benjamin-Addy

Download or read book Prospects and Challenges of Re-capitalising Commercial Banks in Ghana written by Edmund Benjamin-Addy and published by GRIN Verlag. This book was released on 2012-07-27 with total page 131 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2012 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, Methodist University College Ghana, course: Finance, language: English, abstract: In recent times a lot of banks have found Ghana a good destination for extending their operations and this has heightened competition in the banking industry. By way of ensuring that banks maintain adequate working capital, the industry regulator i.e. Bank of Ghana came out with a directive instructing all commercial banks to ensure that by the close of December 2012 their operating capitals do not fall below GH¢60million. As at the close of December 2011, almost all foreign banks had complied. However, some local banks are sensing serious limitation in meeting the order. The study therefore had the objective of finding out the challenges facing these banks thereby recommending avenues for raising funds to meet the proposed capital requirement. Six banks operating in the Accra business district namely National Investment Bank (NIB), Ecobank Ghana Ltd. (ECB), Prudential Bank, Ghana Commercial Bank, Merchant Bank Ghana and Zenith Bank were used for study. Primary data was obtained by soliciting views from bank officials on questions like what challenges confront Ghanaian Banks in their cash mobilization efforts? How could the banks generate more funds from the Ghana Stock Exchange? What efforts were being made to secure funding from strategic investors? How could they reduce operating cost to enhance working capital? The secondary data emanated from financial statements and brochures of the banks. There was a direct approach to officers of these banks whose job description included liquidity adequacy or assets liability management. The questionnaire technique was adopted as the ideal research instrument. The data was analyzed using SPSS application, TOPAZ and resulting charts and graphs was featured. [...] Recommendations made call on the struggling banks to consider mergers and acquisition as a viable option to staying in business. It has also been suggested that The Central Bank could assist commercial banks in saving some funds to beef up their liquidity positions by financing compulsory service delivery systems such as ATMs, through long term loans. Some conclusions drawn are that some commercial banks genuinely need help to recapitalize and that options being considered include attracting strategic international partners, mergers and acquisitions, as well as looking inwards to cut cost so as to step up liquidity levels.

Implementation of interest free banking services in Ethiopia. The mediating role of customer involvement

Author : Nobel Aragaw
Publisher : GRIN Verlag
ISBN 13 : 3346037371
Total Pages : 164 pages
Book Rating : 4.3/5 (46 download)

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Book Synopsis Implementation of interest free banking services in Ethiopia. The mediating role of customer involvement by : Nobel Aragaw

Download or read book Implementation of interest free banking services in Ethiopia. The mediating role of customer involvement written by Nobel Aragaw and published by GRIN Verlag. This book was released on 2019-10-16 with total page 164 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2019 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 3,5, Addis Ababa University (Addis Ababa University), course: MBA, language: English, abstract: This paper presents major factors affecting the implementation of interest free banking services among customers in recognizing factors that need consideration in implimenting IFB service in Commercial Bank of Ethiopia, Addis Ababa, Ethiopia. It suggests the importance for bank providers to understand factors influencing implementation of IFB service, customers’ preference and view from the customers’ perspective, in order to attract and retain customers, as well as leop forward. The empirical evidence shows that interest free banking have rapidly spreading and developing across the world. But almost half of Ethiopian banking commercial industry out of eithteen banks has commenced interest free banking service within less than three years while some others banks are also showed initiation to commence it.

The effect of financial innovations on profitability of commercial banks of Ethiopia

Author : Abdihakeem Omer
Publisher : GRIN Verlag
ISBN 13 : 3346810380
Total Pages : 107 pages
Book Rating : 4.3/5 (468 download)

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Book Synopsis The effect of financial innovations on profitability of commercial banks of Ethiopia by : Abdihakeem Omer

Download or read book The effect of financial innovations on profitability of commercial banks of Ethiopia written by Abdihakeem Omer and published by GRIN Verlag. This book was released on 2023-02-10 with total page 107 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2020 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: Very Good, , course: MBA - FINANCE, language: English, abstract: The Ethiopian banking system is very much behind in the adoption of financial innovations compared to the rest of the world, however, the Ethiopian financial sector cannot remain an exception in expanding the use of the modern banking. The main objective of this study was to examine the effect of financial innovations on the profitability growth of commercial banks in Ethiopia. The specific objectives were to examine the effect of product innovation, bank specific factors and macro-economic factors on profitability growth in commercial banks. The study were used quantitative research, secondary data, and data was analyzed using both descriptive and inferential statistics and employed purposive sampling technique to select 12 banks for the study in the periods from 2016 to 2019. Multiple regression with the aid of STATA 14 software was used to examine in this study.

Banking in Africa

Author :
Publisher :
ISBN 13 : 9789286144950
Total Pages : pages
Book Rating : 4.1/5 (449 download)

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Book Synopsis Banking in Africa by :

Download or read book Banking in Africa written by and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In its fifth edition, this report focuses on recent developments in Africa's banking sectors and the policy options for all stakeholders. The study of banking sectors across all African sub-regions includes the results of the EIB survey of banking groups operating in Africa. Three thematic chapters address challenges and opportunities for financing investment in Africa: - Investing sustainably in Africa's cities; - Mobilising agricultural value chain financing in Africa: why and how; - Remittances and financial sector development in Africa.

Financial Development in Sub-Saharan Africa

Author : Mr.Montfort Mlachila
Publisher : International Monetary Fund
ISBN 13 : 1475532407
Total Pages : 79 pages
Book Rating : 4.4/5 (755 download)

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Book Synopsis Financial Development in Sub-Saharan Africa by : Mr.Montfort Mlachila

Download or read book Financial Development in Sub-Saharan Africa written by Mr.Montfort Mlachila and published by International Monetary Fund. This book was released on 2016-09-14 with total page 79 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper discusses how sub-Saharan Africa’s financial sector developed in the past few decades, compared with other regions. Sub-Saharan African countries have made substantial progress in financial development over the past decade, but there is still considerable scope for further development, especially compared with other regions. Indeed, until a decade or so ago, the level of financial development in a large number of sub-Saharan African countries had actually regressed relative to the early 1980s. With the exception of the region’s middle-income countries, both financial market depth and institutional development are lower than in other developing regions. The region has led the world in innovative financial services based on mobile telephony, but there remains scope to increase financial inclusion further. The development of mobile telephone-based systems has helped to incorporate a large share of the population into the financial system, especially in East Africa. Pan-African banks have been a driver for homegrown financial development, but they also bring a number of challenges.

Commercial banks in economic development of SMEs. An analysis of their contribution

Author : Hitiyise Samuel
Publisher : GRIN Verlag
ISBN 13 : 3346459128
Total Pages : 58 pages
Book Rating : 4.3/5 (464 download)

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Book Synopsis Commercial banks in economic development of SMEs. An analysis of their contribution by : Hitiyise Samuel

Download or read book Commercial banks in economic development of SMEs. An analysis of their contribution written by Hitiyise Samuel and published by GRIN Verlag. This book was released on 2021-08-04 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bachelor Thesis from the year 2021 in the subject Business economics - Investment and Finance, grade: second class upper division, , course: Accounting, language: English, abstract: The study was guided by analyzing the contribution of commercial banks in economic development of SMEs The target population for the study consisted of registered SMEs in KCBR as their clients.A descriptive research design as well as an explanatory research design was used. The study used Bouchard formula to sample SMEs and then used random sampling to select the 105 SMEs. The respondents of the study were the owners and managers of the SMEs. The study used questionnaires to collect quantitative data using closed ended questions . Data analysis will be done using SPSS statistical software version 21. Descriptive statistics (Frequencies, Means and Standard deviation) and inferential statistics (Correlations and regression) were used in analysis. A multiple linear regression model was used for analysis and all tests were conducted at 5% level of significance. The study findings indicated that banking services are positively related with economic development of SMEs. The study concluded that commercial banks in Nyarugenge district are favorable. The study also concluded commercial bank services are effective and they economic development of SMEs significantly. SMEs in Rwanda suffer from weak financial performance and a high failure rate. Scholars argue that judging by the poor economic development of the informal sector, not much progress seems to have been achieved, despite government efforts to promote SME activity. Some of the key factors attributed to this poor performance is access to financial services. Therefore, the purpose of this study was to examine the contribution of commercial banks in economic development of SMEs Normally, SMES play vital and significant contributors to economic development through their critical role in providing job opportunities and reducing poverty levels, an estimated number of up to 40% of the start-ups SMEs fail by year 2 and at least 60% close their doors by year 4. This menace is attributed to poor financial management among small businesses. Accessing credit is a major constraint to the economic development and growth of SMEs and also to poor rural and urban households. This is mainly due to the behavior of lenders in terms of hedging against borrowers’ risks by demanding collateral, which they lack, and also information asymmetry.

Enterprise Risk Management in Ethiopian Private Banks. An Assessment

Author : Yetayew Alemu
Publisher :
ISBN 13 : 9783346313744
Total Pages : 74 pages
Book Rating : 4.3/5 (137 download)

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Book Synopsis Enterprise Risk Management in Ethiopian Private Banks. An Assessment by : Yetayew Alemu

Download or read book Enterprise Risk Management in Ethiopian Private Banks. An Assessment written by Yetayew Alemu and published by . This book was released on 2020-11-12 with total page 74 pages. Available in PDF, EPUB and Kindle. Book excerpt: Thesis (M.A.) from the year 2020 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 3.33, Ethiopian Civil Service University, course: Financial Management, language: English, abstract: The aim of this research is to explore the practice of Enterprise Risk Management in Ethiopian Private Banks. Currently, there are 16 private commercial banks working in the country, some of which are celebrating their 20 years' anniversaries. To represent all the 16 private banks, the researcher grouped them in two categories. Wegagen Bank, United Bank and Bank of Abyssinia has been selected from the earliest established commercial banks and Abay Bank, Buna international Bank and Berhan Bank were selected from the lately established banks in simple random sampling method with a total number of 51 employees working risk management area from the selected 6 commercial banks. The data were collected through questionnaire and face to face interview. The questionnaires were distributed to all risk management department staff of each selected commercial banks. The interviews were made with NBE's bank supervision department and directors as well as managers and directors of commercial banks. 51 questionnaires were distributed, properly filled and fully returned to the researcher. The finding of the research reveals that, the major challenge faced by commercial banks are weak ton at the top, absence of qualified staff, absence of advanced risk management technology and lower management attention and the recommendations were, Banks should have an enterprise risk management committee at management level, Banks should conduct workshops or panel discussion to identify enterprise level risks in each activity and Banks should have comprehensive risk register and database to run their business with smooth operations and absence of interruption.

Assessment of Ethiopian Environment Impact Assessment (EIA) Proclamation

Author : Gedifew Yigzaw
Publisher : GRIN Verlag
ISBN 13 : 3346012549
Total Pages : 15 pages
Book Rating : 4.3/5 (46 download)

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Book Synopsis Assessment of Ethiopian Environment Impact Assessment (EIA) Proclamation by : Gedifew Yigzaw

Download or read book Assessment of Ethiopian Environment Impact Assessment (EIA) Proclamation written by Gedifew Yigzaw and published by GRIN Verlag. This book was released on 2019-09-10 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: Academic Paper from the year 2019 in the subject Environmental Sciences, Bahir Dar University (Department of Governance and Development Studies), language: English, abstract: The government of Ethiopia introduced the Environmental Impact Assessment (EIA) Proclamation No. 299/2002 in 2002. The overall objective of this study is to critically assess the EIA proclamation (Proc. No. 299/2002) of Ethiopia. So as to critically assess the level of public participation, the adequacy and effectiveness of legally established laws in the EIA process, this study employed qualitative data analysis. This study revealed that the role of public participation in the entire EIA stages is weak. The study also identified that both the legal and institutional frameworks have remained inadequate to ensure full effectiveness of the EIA system. Moreover, this study describes the existence of weak coordination among or between federal, regional, zonal and other sectoral units. Hence, this study recommends that its effective implementation necessarily requires the involvement of the public and the issuance of more specific subsidiary instruments.

Challenges and Prospects of Agricultural Production and Productivity

Author : Urgessa Tilahun
Publisher :
ISBN 13 : 9783656724025
Total Pages : 32 pages
Book Rating : 4.7/5 (24 download)

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Book Synopsis Challenges and Prospects of Agricultural Production and Productivity by : Urgessa Tilahun

Download or read book Challenges and Prospects of Agricultural Production and Productivity written by Urgessa Tilahun and published by . This book was released on 2014-08-25 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2013 in the subject Agrarian Studies, grade: A, Wollega University (Haro Sabu Agricultural Research Center), language: English, abstract: Agricultural production in Ethiopia is characterized by subsistence orientation, low productivity, low level of technology and inputs, lack of infrastructures and market institutions, and extremely vulnerable to rainfall variability. Productivity performance in the agriculture sector is critical to improvement in overall economic well-being in Ethiopia. Low availability of improved or hybrid seed, lack of seed multiplication capacity, low profitability and efficiency of fertilizer, lack of irrigation development, lack of transport infrastructure, inaccessibility of market and prevalence of land degradation, unfertile soil, overgrazing, deforestation and desertification are among the constraints to agricultural productivity during last period. However, in 2011 the sector grew by 9% driven by cereal production which reached a record high of 19.10 million tons in Ethiopia.