This study provides empirical analysis on the market chain for cereal and pulse crops by measuring profit of rural farming households in North Shewa Zone of Oromia Regional State, (Ethiopia). Marketing problem of agricultural products happens because of internal and external problem of the farmer. The purpose of this study is to provide empirical evidence on the market chain in the area. Multistage sampling technique was used to select 393 sample farming households. Additionally, 20 merchants, 10 government employees and 1 Salale Union worker respondents were included in the study. The mixed research method employed to make the result more fruitful. Some descriptive analysis and Logistic regression were used for the econometric part. Even if some independent variables are insignificant, result of the model shows that market chain positively affects the profitability of the farmer. The areas with market chain for both agricultural input and agricultural product have relatively high profits. Farmers who use agricultural inputs from market cooperatives and sell their crops to the cooperatives are highly productive and more profitable. These results confirm that market chain contributes directly for improving the profitability of rural farming households, and hence scaling up the trading among farmers. Minimizing marketing problem and increasing awareness, financial access and road access for farmer by concerned local government institutions and nongovernmental organizations were recommended to improve farmers' profitability.
The paper analysed the implication of establishing the capital market on commercial banks operating in Ethiopia. The study aimed to identify its potential opportunities and main challenges to banks, to see how the capital market is operating in other African countries and to show the necessary preconditions to commercial banks to prepare themselves. The research method employed in the study had both qualitative and quantitative features, and the research was conducted using a mixed research method. Primary data was collected from focus group discussions with experts that have experience in the area, and, furthermore, secondary data were collected from literature and websites. The findings of the study identified the major risk of the capital market to the economy like economic risk to investments, inflationary/deflation risk, market value risk, being too conservative and political crisis by relating with the current situation of country regulation power. The study also investigated the major opportunities of the capital market to meet the financial need for the economy and how it can work with commercial banks. Besides, the study investigated its challenges to commercial banks working with security exchange companies. Many literature analyses confirmed the reputation of capital markets comparative to banks, which cannot explain across-countries deviation in economic growth. And it is better to establish a well-functioning legal framework, which plays a vital role in creating a healthy financial system. The study recommended that commercial banks should modify their business models and create products related to the investment bank and product differentiation that captures the mode of the capital market. And it is better for the commercial banks to empower their human resource, and they shall aggressively work on technology adaptation, work highly on awareness creation for all internal and external customers. Banks’ capital increment should be made before the security market is established to minimise any risk that may come with it.
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