Analysis of Data obtained through Questionnaire

Perception of Partnership

This section presents the respondents’ perception about their

organizations’ partnership with the CBE. Specifically, respondents were
asked whether they believe that their organization has partnership with
CBE or not. Accordingly, majority (92%) of them think their organization
has partnership relationship with the Bank while 8% do not believe.
Regarding the Bank’s effort in Strengthening strategically partnership
relationship through formal discussion with development partners,
majority of the respondents (69%) perceived that they have no any
formal partnership discussion with the bank while 31% of respondents
perceived the have formal meeting and discussion forums on
strengthening formal partnership .
Besides, respondents were asked whether DPs have clear partnership with
the other Banks other than commercial bank of Ethiopia or not.
Accordingly, all most above half of the respondents (55%) suggest that
they have legal and formal partnership relation with other banks while
(45%) of the respondents has no partnership with other banks.
Accordingly the table blow shows the sample of regional development
partner’s respondent on the partnership of them with commercial bank of
Ethiopia.

Table 1: Perception of DPs about their Partnership with CBE

Perception of DPs about the

  Frequency Percent

Yes 85 92
Does the organization believe that has No 8 7
partnership with CBE? Total 93 100
Yes 29 31
Did the organization have conducted
No 64 69
formal discussion with CBE to
strengthen their strategic partnership? Total 93 100
Yes 42 45
No 51 55
Does the organization have formal
partnership with other private Banks? Total 93 100
Even though majority of respondents think that they have partnership
relationship with the Bank, the relationship does not comprise the
elements which constitute the formation and relationship of development
partnership. This can be understood from the responses of subsequent
questions in which majority of them said the existing partnership is on the
bases of the customer relationship and due to that majority of
respondents responds that there is no any formal discussion and
agreement developed to strength formal partnership with the Bank
because of that with expended market share and banking industries
almost half the respondents have legal and formal partnership with other
banks. This shows that as commercial bank of Ethiopia’s stakeholders
have to do much better with development partners to formalize and
legalize partnership by knowing their needs and will through legal
agreements and more do closely with the partners on developing
partnerships.

1.1.1.1. Common Engagement Areas

The common engagement areas that were mentioned by the respondents

are presented in Table 2 below.
Regarding the bases of partnership between CBE and DPs, the
respondents mentioned that their engagements are mostly on the day to
day operation of the Bank (i.e. Bank-Customer Relationship).This shows
lack of clear understanding about the concept of development
partnerships since it is beyond the Bank-customer relationship issue.
However, from the bases of partnership, financing stood is the first place
for regional government development partners like their staffs salary
payments and fund transfer ,capital and other budget management ,cash
withdrawal and deposit and other banking activities like facilitating loan
,issuance of guarantees and bonds are mentioned by the respondents.
Even though DPs in one way or another maintain some relationship with
the Bank regarding the above mentioned areas of engagement, this by
itself cannot ensure the existence of partnership. The table below
indicates that most of the respondents expressed their view that customer
relationship as a major partnership area with the Bank. This could indicate
lack of awareness about the concept of development partnership.

Table 2: common Engagement Areas

Common Engagement
Bases of Partnerships Areas
Frequency Percentage
salary payment and fund transfer 33 34.5
Capital and other budget 10 11
management
cash withdrawal and deposit 8 8.5
other banking activates like 36 38.7
facilitating loan issuance of
guarantee etc.
No response 6 6.5
Source: Survey Result, 2016* Not taken as a basis of partnership in the study.

1.1.1.2. Common Engagement Areas between the DPs and the Bank

As shown in Table 2 above, most of the respondents look forward and

want financing to be the primary bases of partnership with the Bank. Even
if customer satisfaction is not taken as bases of partnership, it is also
stated to be their intended engagement area. This expectation is just
expectation from regional development partners ’ point of view rather
than doing a particular common and a mutually agreed upon business or
project.

Existing Engagement Areas between DPs and the CBE

Representatives of the interviewed organizations mentioned that their

organization has been engaging with the Bank in various areas/issues
which have a nature of partnerships. However, the team grouped the
mentioned common engagement areas into the bases of partnerships
identified by the study. From the list of common engagement areas
mentioned by the respondents, majority of the partners’ engagement falls
into daily financial transaction, which is expressed in the form of financing
their big projects, provision of guarantees, facilitating loans, allocation of
foreign currency salary payments and fund transfer other for cash deposit
and cash withdrawal etc. For instance, the Bank has been hugely
financing the Addis Ababa Condominium Housing Projects through
partnering with the Addis Ababa Saving Houses Development Enterprise.
This partnership was formally established by signing Memorandum of
Understanding (MOU) between the Bank and the Enterprise.

. Both partners cooperate in educating the societies about the benefits of

saving, making accessible banking services, and encouraging their
employees to receive their salaries through the Bank in order to mobilize
deposits.

From the above analysis, it is observed that the common partnerships

between the partners did not include most of the partnership bases.The
common partnership bases mainly concentrate on specific areas like
financing, daily financial transaction like salary payment, cash withdrawal
and deposit ,other daily banking activates . However, in order to enhance
the bases of partnerships, establishing a formal development partnership
through signing a MOU/contract, conducting a regular and formal
discussion program, and monitoring and evaluating the partnership
activities are mandatory.

DPs’ Suggestion to Enhance the Partnership

Representatives of the surveyed organizations were given an opportunity

to forward their suggestions on how to enhance the partnership. Almost
all of the respondents suggested that arranging a formal and regular
discussion program between the partners at every level brings a number
of benefits to both partners. It paves the ground to establish formal
partnership agreements and enhance the existing partnership between
partners. It helps to create awareness about the partners’ visions,
development plans, policies and procedures, services, etc. It also helps to
actively cooperate in various activities that will have an impact on the
realization of the partner’s visions and strategies, business expansion,
and provision of services as per the need of the partners.

The respondents also suggested that, even if the Bank’s service

accessibility tremendously enhanced these days, there are areas that the
Bank is expected to work on it to enhance its banking service
accessibility. For instance, the Bank in collaboration with the concerned
partners like Ministry of Industry should open branches and avail ATMs in
industrial zones that are currently operational and should prepare itself in
advance to open in those industrial zones that will be operational in the
near future. In doing so, the Bank can provide one-stop banking services
to the compounds’ society, smoothen their financial transactions, mobilize
resources, and also strengthen its partnership.

the Expectation of DPs from the Bank

With regard to common engagement areas of the bank with them

regional governments development partners as shown in the Table2
above,34.5% of the respondents engaged with the bank on salary
payment and fund transfer,11% engaged with the bank on capital and
other budget management ,8.5%of the regional government development
partners respond their view of engagements with the commercial bank of
Ethiopia on daily cash flow of withdrawal and deposit in other hand
38.7% of the respondents suppose their response of engagements with
commercial bank of Ethiopia on other banking activates like facilitating
loan, issuance of guarantees and bonds ,issuances of cpo ,foreign
currency allocation ,and lastly 6.5% of regional development partners
does not forwarded common enegemant areas with the bank due to that
they have no idea about partnership rather they suppose partnership
as daily transaction customer The result revealed that more than half of
the expectations of the DPs are related with improving the existing
customer relationship with the Bank which can be addressed by customer
satisfaction survey.

Table 3: Employees' Opinion on Expectation of DPs from the Bank

Expectation of DPs Frequenc Percentage

y
salary payment and fund transfer 16 22
budget management 14 19
cash withdrawal and deposit 10 14
other banking activates 5 7
no response 5 7
Information Exchange 4 5
Customer Relationship 40 55
Source: Survey data, 2016* Not taken as a basis of partnership in the study.

1.1.1.3. Employees’ Opinion on CBE Discussion with DPs

Employees of the Bank were also asked to forward their ideas whether the
Bank has conducted discussion with DPs or not. As indicated in the table
below, majority of the respondents (66%) confirmed that the Bank has
conducted discussion with DPs as the need arises while 29% of them
failed to agree. This implies absence of formal and regular discussion
sessions with DPs.

Table 4: Employees' Response Whether the Bank has conducted Discussion with DPs or
Not

Response Frequency Percent

Yes 52 66
No 23 29
No response 4 5
Total 79 100
Source: Survey data, 2016

Regarding the importance of conducting discussion with DPs, 23% of the

respondents believed that discussion with DPs help the Bank to know its
strengths, weaknesses and service related problems. This, in turn,
provides a room for the Bank to reinforce its strengths, overcome its
weaknesses and solve service related problems regularly. Similarly,
around 21%, 19% and 16% of them believed that conducting discussion
with DPs enhances deposit mobilization, creates awareness about various
banking service and expands customer base, respectively. In addition, the
remaining respondents explained that conducting discussion with DPs
helps the Bank to introduce its vision, mission and strategy (16%),
improve saving culture (7%), understand the needs of DPs (7%) and
create mutual understanding (5%). This implies the overall importance of
conducting formal and regular discussion with DPs.

Table 5: Importance of Conducting Discussion with DPs

Importance Frequency Percent

creating discussion forum 10 23

Enhance deposit mobilization 9 21

provide well developed service 8 19
Expand customer base 7 16
Help the bank to introduce its vision, mission and strategy 7 16
Improve saving culture 3 7
Enable to understand the needs of development partners 3 7
Create mutual understanding 2 5
Source: Survey data, 2016

Respondents also suggested the frequency of conducting formal and

regular meeting with DPs (see Table 10). Around 40% of them suggested
conducting formal and regular meeting with DPs on quarterly basis, while
26% and 21% of them suggested semi-annually and monthly,
respectively. This implies that it is better for CBE to conduct formal and
regular meeting with DPs quarterly. This helps the Bank to solve problems
of DPs in time and thereby maintain smooth relationship with them.

Table 6: Respondents' Response on the Frequency of Conducting Meeting with DPs

Frequency of meeting Frequency Percent

Quarterly 29 40
 Semi-annually 19 26
Monthly 15 21
Twice a month 4 5
Once every two months 3 4
When necessary 2 3
Source: Survey data, 2016

1.1.1.4. Employees’ Responses on the Complaint of DPs

Regarding complaints of DPs, 44% of the respondents revealed the

existence of network interruption and system problem. This problem is
widely visible during peak hours and salary payment for external
customers. Similarly, 42% of respondents stated that CBE failed to
provide adequate credit as per the DPs’ needs. This implies that there is
huge gap between the financial needs of DPs and the capability of CBE to
avail the required loan.

Moreover, 40% of the respondents explained that services of the Bank

lack quality and speed. To address these problems, the Bank needs to
solve the network problem and deploy more ATMs. Finally, the remaining
respondents raised different complaints of DPs namely lack of availing
enough FCY (38%), failure to support and consider the needs and
interests of DPs (14%), absence of formal and regular discussion sessions
with DPs (10%). In line with this, CBE needs to create adequate
awareness about the concept of development partnership. Besides,
agreement needs to be reached between the Bank and DPs to establish
formal partnership andconduct formal and regular meetings. Hence, it is
very important to put in place proper control and monitoring activities.

Table 7: Respondents' Responses on the Complaint of DPs

Complaint Frequency Percent

Network interruption and system problems 22 44
Lack of providing adequate credit 21 42
Services of the bank lack quality and speed 20 40
Lack of availing enough FCY 19 38
Failure to support & consider the needs & interests of DPs 7 14
Absence of formal and regular discussion sessions 5 10
Source: Survey data, 2016

1.1.1.5. Employees’ Suggestions to Strengthen the Existing

Partnership

Respondents were asked to forward their suggestions to strengthen the

relationship of CBE with DPs. As indicated in Table 12 below, majority
(87%) ofthe respondents suggested the importance of preparing formal
and regular discussions at various levels. The respondents suggested that
once awareness about the concept of development partnership is
adequately made and agreement is reached at higher level, it needs to be
cascaded to the lower units. This helps the Bank and DPs to have mutual
understanding and shared goals, work closely to solve problems in time,
maintain win-win approach and have continuous information exchange.
The existence of win-win approach is crucial to establish long-term
relation. Besides, this relation helps CBE to introduce its role in the
development endeavor of the country.

In addition, about 11% of the respondents suggested the need of

providing quality service to reinforce the relation with DPs. Regarding
this, CBE needs to put in place modern banking services, expand bank
accessibility, and expand agent banking. Furthermore, providing financial
support and sponsoring some of the DPs’ crucial programs, and availing
credit service were suggested by 9% and 5% of the respondents to
strengthen the existing relationship.

Table 8: Comments of Respondents' to Strengthen the Relationship with DPs

Comments Frequency Percentage

Preparing formal and regular discussions at various
69 87
levels with development partners
Improving the quality of service provision 9 11
Providing financial support and sponsorship 7 9
Availing credit service 4 5
Source: Survey data, 2016