By LJDemissie
January 16, 2025
Introduction
In today’s fast-paced and interconnected world, credibility and expertise are essential for business leaders to establish trust with stakeholders. However, the ease of self-promotion through social media and other channels has created opportunities for individuals to present themselves as experts without necessarily possessing the requisite qualifications or experience.
This issue is further compounded by Ethiopian state-owned media, such as Fana Television and EBC (Ethiopian Broadcasting Corporation), state-affiliated media outlets like Addis Media Network (AMN), as well as private media like ARTS TV (African Renaissance Television Services) and EBS TV (Ethiopian Broadcasting Service). These platforms often accept claims from individuals closely associated with the PM Abiy Ahmed government without questioning. They promote their policies using their claimed educational and actual experiences, contributing to the spread of unverified expertise.
This case study delves into the curious case of Ato Zemedeneh Negatu, a self-proclaimed economic expert (see “References” for more information on economic experts) and fund manager (see “References” for more information on fund managers) who claims to have made Ethiopian Airlines what it is today and improved workplace rights for its employees.
For example, he made several exaggerated claims and spread disinformation, including helping Ethiopian Airlines become great, running Ernst & Young’s global office. The host of the Dawit Dreams YouTube channel praised him, and saying, “This has great meaning because Ato Zemedeneh and company got into Ethiopian Airlines, exhaustively used all their knowledge, and now a lot of people have the right to do a great job” (1). As Zemedeneh smiled with a closed-mouth grin, he bowed his head, closed his eyes, and indulged in the unmerited recognition and undue praise he received, along with the thunderous applause from the audience. Follow the link and watch the video from timestamp 15:59 to 16:35.
Through a critical analysis of his credentials, public statements, and business activities, this study raises important questions about expertise, credibility, and the responsibility of business leaders to uphold ethical standards.
Background
Ato Zemedeneh Negatu is a prominent figure in Ethiopian business circles, frequently appearing on state-owned media and social media platforms. He presents himself as the architect behind Ethiopian Airlines’ success and an economic expert, offering general perspectives and contextless comparisons on various economic issues, such as “Ethiopian Airlines is one of the largest in the world,” which can be misleading without proper context. He also promotes his company, Fairfax Africa Fund (FAF), as a fund management company and major investor in infrastructure, technology, and real estate. However, a closer examination of his credentials and business activities reveals a troubling lack of transparency and accountability.
Analysis
Credentials and Qualifications
A review of publicly available information on Ethiopian Securities Exchange’s (ESX) (2) website reveals that while Ato Zemedeneh Nigatu lacks formal education and training specifically in economics, he has significant experience in the business sector. He holds a business degree from Howard University, completed the LSE [five days] program at Harvard Business School, and is a U.S. CPA. In 2004, he worked as a project manager for Ernst & Young Ethiopia, collaborating with consulting firms, Ethiopian Airlines leadership, and employees on the airline’s Vision 2010. This experience demonstrates his involvement in significant projects, although it does not necessarily qualify him as an economist.
Business Activities
In addition to his role with Ernst & Young, his business activities with Fairfax Africa Fund (FAF) reveal a lack of evidence supporting his claims of managing significant funds. The company’s announcements about large projects have not materialized, including their $4 billion refinery in Ethiopia, and there is no credible evidence to suggest that FAF is a viable fund management company. This lack of transparency and accountability raises concerns about his business practices and ethics.
Fairfax Africa Fund also claims “to have a significant track record in investment banking, stating that their team has successfully delivered cross-border M&A deals in several African countries, including Nigeria, Ghana, Ethiopia, Malawi, and Togo. They also claim that the total value of the African deals their team has worked on in the past few years is over US$17.0 billion (3).”
However, it’s important to note that these claims are made without providing specific evidence or detailed information to substantiate them. If you are considering engaging with Fairfax Africa Fund or any other investment firm, it’s always a good idea to conduct thorough due diligence and seek independent verification of their track record and credentials.
Vision 2010 Project
Ethiopian Airlines’ five-year vision from 2006 to 2010, known as Vision 2010, aimed to achieve significant growth and success. According to former CEO Girma Wake’s statement on March 10, 2010 (4), “Ethiopian Airlines exceeded [in only about four years] its ‘Vision 2010′ targets in all but the number of passengers carried.”
The airline clarified via an email to the author that Zemedeneh contributed to the Vision 2010 project in 2004 as a project leader at Ernst & Young Ethiopia. They also clarified that this project was part of a collaborative effort involving multiple consulting firms and Ethiopian Airlines employees. After the project was completed, Ernst & Young Ethiopia’s employees, including Zemedeneh, and the other consulting firms’ staff had no part in implementing the project.
By not acknowledging the contributions of other teams and the collaborative nature of the project, Zemedeneh’s claim is deceptive. It shapes the narrative to make it seem like his involvement was the sole reason for the airline’s success, which is not accurate. By stating “we” without specifying who “we” refers to, Zemedeneh implies that his group alone was responsible for the success of Ethiopian Airlines.
This can mislead people into thinking that his group did all the work, when in reality, multiple consulting firms, including Ethiopian Airlines leadership and employees, were involved. His statement is deceptive and inflates his profile without outright lying. Given that he made this statement 20 years after his involvement, it further stretches the credibility of his claim and highlights the exaggeration in his narrative.
Counterarguments
Some may argue that Zemedeneh’s extensive experience and recognition in the business world justify his claims. While his achievements and awards are noteworthy, it is essential to differentiate between contributing to a project and being the primary force behind its success. Transparency and acknowledgment of the collaborative nature of such projects are crucial to maintaining credibility.
Others might argue that Zemedeneh can be called an economist because he completed introductory economics courses, ECON 101 and 102, and he is a well-known businessman with successful investments. However, completing introductory economics courses, being a successful businessman and investor does not necessarily qualify someone as an economist.
An economist typically has formal education and training in economics, engages in in-depth study and analysis of economic theories, and provides insights based on rigorous research. Zemedeneh’s lack of formal education in economics and the absence of evidence supporting his claims of economic expertise raise significant concerns about his credibility as an economist.
Call to Action
To maintain the integrity of Ethiopian newly inaugurated financial markets and ensure that professional standards are upheld, demand:
- Clarify: Provide transparency about his role in Ethiopian Airlines’ Vision-2010 project and his qualifications as a fund manager. This includes verifying his claims and the actual management of significant funds by Fairfax Africa Fund (FAF), as well as his achievements in fund management.
- Verify Credentials: Confirm whether his economics professional credentials.
- Examine Multiple Roles: Assess the legitimacy of his various self-proclaimed titles, including economist and fund manager. Given his retirement and subsequent rebranding as an economist, it is crucial to verify whether these titles are justified and based on relevant qualifications and experience.
- Ensure Transparency: The Ethiopian Securities Exchange (ESX) and other relevant authorities such as Federal Ethics & Anti-Corruption Commission must ensure transparency in the professional claims made by individuals in positions of influence. This is especially important given his role on the ESX board and his representation as a leading economist by the Ethiopian state-owned media Fana Television and EBC.
- Maintain Integrity: The Ethiopian Investment Commission (EIC) and other regulatory bodies should require proper documentation and evidence to support claims about major investment projects such as the shelved $4 billion refinery project in Ethiopia by Fairfax Africa Funds. This includes verifying the existence of signed agreements, financial statements, and other credible sources of funding commitments.
By demanding transparency and accuracy, we can ensure that credit is given where it is due and maintain the integrity of our institutions. Holding individuals accountable for their claims will help preserve trust in the Ethiopian financial markets and ensure that professional standards are upheld.
Recommendations
- Verify Credentials: Business leaders must ensure that their credentials and qualifications align with the expectations of their stakeholders.
- Transparency and Accountability: Business leaders must prioritize transparency and accountability in their business practices to maintain credibility and trust with stakeholders. This includes being transparent about their claims and ensuring they are verifiable.
- Ethical Standards: Business leaders must uphold ethical standards and ensure that their business practices align with the expectations of their stakeholders.
References
Ottawa University Article title: What is an Economist?
What is an Economist?
An economist studies the production, distribution, and consumption of goods and services, focusing on how individuals, businesses, governments, and nations make choices about allocating resources.
What Does an Economist Do?
Economists analyze a society’s resources and their usage. Their responsibilities include researching economic issues, collecting and analyzing data, forecasting market trends, advising on economic issues, and creating reports.
What Types of Economists are There?
There are various types of economists, each with a unique specialization:
- Macroeconomists: Study the economy as a whole.
- Microeconomists: Focus on smaller-scale economic trends.
- Labor Economists: Study the workforce and labor market.
- Financial Economists: Research and report on economic issues within companies.
- International Economists: Study international trade and investment.
Where Do Economists Work?
Economists can work in nearly every industry, including government, academia, financial services, and corporations. Entry-level jobs may be in smaller organizations, while experienced economists may work in Fortune 500 companies or the federal government.
Investopedia Article title: Fund Manager: Definition and Responsibilities URL:
- Role and Responsibilities: Investopedia’s definition of a fund manager outlines the key responsibilities, including implementing investment strategies, managing portfolios, and making decisions about buying and selling assets. This provides a benchmark for evaluating Zemedeneh’s claims of being a fund manager.
Sources
- YouTube channel: Dawit Dreams Video title: የኢትዮጵያ አየር መንገድን የለወጡት አቶ ዘመዴነህ ንጋቱ! #dawitdreams #zemedenehnigatu. From timestamp 15:59 to 16:35. URL: https://youtu.be/anOyXQkcUdk?si=DKt3pStWXfwo0FZX&t=957
- Ethiopian Securities Exchange (ESX) About Us URL: https://www.esxethiopia.com/about-us
- Fairfax Africa Fund Advisory Services URL: https://fairfaxafrica.com/index.php/advisory-service
- AllAfrica Article title: Ethiopian Airlines Exceeds Vision 2010 Targets URL: https://allafrica.com/stories/201003160712.html
- Ethiopian Economics Association (EEA). (n.d.). Membership Criteria. Retrieved January 15, 2025, from ‘https://eea-et.org/membership/’ (5) A benchmark for what constitutes a qualified economist.
- Credibility and Expertise: The EEA’s criteria for full membership underscore the necessity of holding a degree in economics to be considered a credible and qualified economist. This contrasts with Zemedeneh’s lack of formal education in the field, raising questions about his credibility.
- Professional Standards: The EEA’s criteria highlight the professional standards expected of economists in Ethiopia. This reinforces my call for transparency and accountability in professional claims, particularly for individuals in influential positions.
- Ethical Responsibility: The EEA’s membership criteria reflect the ethical responsibility of business leaders to uphold professional standards. This aligns with my argument that Zemedeneh’s misleading claims and lack of transparency undermine the integrity of the Ethiopian financial markets.
Disclaimer
LJDemissie
The views expressed in this article are my own and are not intended to defame or harm any government, organization, or individual. The information provided is based on publicly available sources, information from Ethiopian Airlines, and the author’s critical analysis. If you believe the content contains misrepresentations or exaggerations of facts, please contact me at [email protected] or @LJDemissie (X, formerly known as Twitter). I strive for accuracy and will promptly address any concerns.
