TIRET October 2012 Issue - MIDROC Ethiopia

now that the technological part of change should not be
overemphasized at the cost of the human/physiological
aspect.
The first and foremost aspect of Change Management
is our understanding of the governing events of change.
Globally, unprecedented changes have taken place in
the last decade. The leading economies and powers of
the world have been shockingly affected by the 9/11
attack. The divide and suspicion between governments
and their citizens towards targeted populations and
among themselves widened like never seen in history.
Complex and intricate mechanisms of activities grew out
of this phenomenon.
The other major change was caused by the financial
crisis of 2007/8. The undercurrent of this event is
currently unsettling the Euro zone with no clarity of the
outcome. The economic development center of gravity
is seemingly shifting from the West to the East. The
world’s manufactured goods and products also seem to
radiate only from the East, primarily from China.
These are changes countries, governments and big
regional economic associations, are trying to cope with.
They have to manage the changes and the effects of
the changes.
Nationally, Ethiopia has also been witnessing changes
from within and without. Some of these changes are
the wave effects of the global change. Some are the
upheavals, political instabilities and uncertainties in
neighbouring countries. On the bright side, mega
projects are being pursued by the Ethiopian Government.
The Growth & Transformation Program envisages
huge hydro power complexes, fertilizer manufacturing
facilities, sugar estates and transport infrastructure, both
air and land.
In the world economic order and international trade,
Ethiopia is aggressively pushing for membership in
the World Trade Organization (WTO). Given the weak
competitive position of Ethiopia’s manufacturing sector,
there will be many hurdles to be tackled.
MIDROC Ethiopia Investment Group is the largest
private investment in Ethiopia. So the changes that
are happening globally, regionally and nationally
will definitely affect the MIDROC Group. Some of the
changes would come in moderately and lightly; so,
seemingly manageable. But some changes could comein
in big waves and storms.
MIDROC Ethiopia Investment Group, at present,
has entered into mega projects. The undertaking of
world scale manufacturing complexes such as Derba-
MIDROC Cement PLC and Toussa Steel Project, huge
agro-industrial and commercial farms such as Horizon
Plantations and Saudi Star’s Gambella Rice farm are
underway. Gold discoveries in unprecedented quantities
would put Ethiopia on the World Gold Reserve map.
These are just some of the changes that demand
paradigm shifts and challenges in the maintenance of
operational sustainability.
The MIDROC Group has to be well prepared to
manage and withstand these changes. Unless prior
embankments and retaining walls are properly built,
the waves that could have remained as manageable
waves could turn out to being like ”tsunamis”. The
foremost pillars of these embankments and walls are
Good Corporate Governance and Implementable &
Sustainable Succession planning.
Having realized these scenarios, the MIDROC
Ethiopia Investment Group has conducted a series of
preparatory awareness creating seminars and brain
storming sessions on Good Corporate Governance and
Succession Planning. Whereas the governance issue
would follow the Road Map as prescribed by the Private
Sector Development Hub of the Addis Ababa Chamber
of Commerce and Sectoral Associations the equivalent
for succession planning is being designed internally.
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