WOLAITA SODO UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT MANAGEMENT

INTERNSHIP REPORT AT

DEVELOPMENT BANK OF ETHIOPIA IN WOLAITA SODO

TOWN

By:-

NETSANET SOLOMON

ID NO: - EV/046/12

Submission date:-24/4/2024

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 Table of Contents

Table of Contents ............................................................................................................................. i

Executive Summary ........................................................................................................................ ii
CHAPTER ONE ............................................................................................................................. 1
1. INTRODUCTION ...................................................................................................................... 1
1.1. Background .......................................................................................................................... 1
1.2. Purpose ................................................................................................................................. 2
1.3 Organization’s Mission, Vision, and Objectives ................................................................... 3
1.4. Rationale, Objectives, and Goals of Internship .................................................................... 4
1.5. Data Collection ..................................................................................................................... 6
1.7. Scope .................................................................................................................................... 8
1.6. Limitations of the report ....................................................................................................... 9
CHAPTER TWO .......................................................................................................................... 10
OVERVIEW OF THE ORGANIZATION ............................................................................... 10
2. Introduction ........................................................................................................................... 10
2.1. Brief Overview ................................................................................................................... 10
2.2. Major Activities.................................................................................................................. 10
2.3. Products .............................................................................................................................. 11
2.4. Hierarchy and Organogram ................................................................................................ 12
CHAPTER THREE ...................................................................................................................... 13
3.1. Duration of Internship ........................................................................................................ 13
3.2. Departments Assigned........................................................................................................ 13
Marketing Department ........................................................................................................... 13
3.3. Overall Experience ............................................................................................................. 14
3.3.1. In terms of improving practical skills .............................................................................. 15
3.3.2 In terms of improving interpersonal communication skills........................................... 16
3.3.3. In terms of improving team work skills ....................................................................... 16
3.3.4. In terms of improving Leadership skills ...................................................................... 16
3.3.5. In terms of understanding about Work Ethics related issues ....................................... 17

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CHAPTER FOUR ......................................................................................................................... 18
4. ANALYSIS ............................................................................................................................... 18
4.1. Financial Analyses ............................................................................................................. 18
4.2. SWOT Analysis.................................................................................................................. 19
CHAPTER FIVE .......................................................................................................................... 21
RECOMMENDATIONS AND CONCLUSIONS ....................................................................... 21
5.1. Based on Strategies Developed in SWOT.......................................................................... 21
5.2. Conclusion.......................................................................................................................... 22
5.3. Recommendations .............................................................................................................. 23
References ..................................................................................................................................... 25

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 Executive Summary
My internship at the Development Bank of Ethiopia in Wolaita Sodo Town provided an enriching
experience that allowed me to delve into the intricacies of banking operations and
organizational dynamics. The report begins with an introduction that sets the stage by providing
the background and purpose of the internship, outlining the methodology employed for data
collection (both primary and secondary), and delineating the scope of the report. Subsequently,
it offers an extensive overview of the organization, shedding light on its historical evolution, core
activities, product portfolio, organizational structure, and hierarchical framework through an
organogram. As I navigated through my internship journey, I seized the opportunity to immerse
myself in various aspects of the bank's operations, from client interactions to project evaluations.
Reflecting on this experience, I gained invaluable insights and practical skills that bridged the
gap between theoretical knowledge and real-world applications. In analyzing my internship
stint, I meticulously examined the challenges encountered, the opportunities unearthed, and the
pivotal lessons learned, thereby fostering a deeper understanding of the banking sector's
nuances. Drawing from these analyses, I proffer recommendations aimed at optimizing
processes, enhancing efficiency, and fostering innovation within the Development Bank of
Ethiopia. In conclusion, this report serves as a testament to my personal and professional growth
during the internship period, offering a nuanced perspective on the operations and practices of
the bank while charting a course for future endeavors in the dynamic landscape of banking and
finance.

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 CHAPTER ONE

1. INTRODUCTION
1.1. Background
The Development Bank of Ethiopia (DBE) stands as a beacon of economic empowerment and
sustainable development in Ethiopia. Established with a visionary mandate, the DBE has been
instrumental in driving transformative change across the nation's economic landscape. Rooted in
principles of financial inclusion and equitable growth, the bank channels its resources towards
fostering entrepreneurship, facilitating infrastructure development, and catalyzing job creation
across diverse sectors. Situated in Wolaita Sodo Town, the regional branch of the DBE serves as
a vital artery pulsating with the lifeblood of financial assistance and expertise, nourishing the
aspirations of local communities and businesses. Against the backdrop of Ethiopia's dynamic
socio-economic milieu, characterized by rapid urbanization, demographic shifts, and burgeoning
market opportunities, the DBE remains steadfast in its commitment to navigating these
challenges and harnessing opportunities for inclusive development.

As an intern at the Development Bank of Ethiopia in Wolaita Sodo Town, I embarked on a

transformative journey of learning and growth. Immersed in the vibrant atmosphere of the bank's
operations, I had the privilege to witness firsthand the intricacies of financial management,
strategic planning, and community engagement. Beyond the confines of traditional banking, the
DBE serves as a catalyst for innovation and empowerment, actively seeking out avenues to
support emerging entrepreneurs, nurture sustainable enterprises, and foster economic resilience.

Throughout my internship tenure, I had the opportunity to engage with a diverse array of
stakeholders, from local entrepreneurs and business owners to government officials and
community leaders. These interactions provided invaluable insights into the challenges and
opportunities shaping the socio-economic landscape of Wolaita Sodo Town and the broader
Ethiopian context. From financing agricultural projects to supporting small-scale enterprises, the
DBE's multifaceted approach to development underscores its pivotal role as a driver of positive
change.

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This internship report endeavors to capture the essence of my experiences, reflections, and
observations during my tenure at the Development Bank of Ethiopia. By delving into the
intricacies of the bank's operations, exploring its impact on local communities, and assessing its
challenges and opportunities, this report aims to offer a holistic perspective on the role of the
DBE in fostering inclusive development and driving socio-economic transformation in Wolaita
Sodo Town and beyond.

1.2. Purpose
The purpose of this internship report is multi-faceted and aims to provide a holistic
understanding of the Development Bank of Ethiopia (DBE) in Wolaita Sodo Town. Firstly, the
report seeks to delve into the intricacies of the DBE's operations and functioning from various
organizational perspectives, including Marketing, Human Resources (HR), Finance, and
Accounting. Through an in-depth analysis, it endeavors to uncover the underlying mechanisms
that drive the bank's performance and shape its strategic direction.

From a Marketing standpoint, the report aims to assess the DBE's market positioning, brand
perception, and customer engagement strategies. By evaluating the bank's marketing initiatives
and customer outreach efforts, it seeks to identify opportunities for enhancing market
penetration, building brand equity, and fostering customer loyalty.

Furthermore, the report endeavors to delve into the HR practices and policies of the DBE,
examining aspects such as recruitment, training, performance management, and employee
engagement. By assessing the alignment between HR practices and organizational objectives, it
aims to ascertain the bank's capacity to attract, develop, and retain top talent, thereby driving
organizational effectiveness and employee satisfaction.

On the financial front, the report employs various analytical tools such as SWOT analysis,
PESTEL analysis, Ratio Analysis, Common-size Analysis, Index Analysis, and Trend Analysis
to evaluate the DBE's financial performance, liquidity, solvency, and profitability. Through this
analysis, it aims to identify financial strengths, weaknesses, opportunities, and threats facing the
bank, while also uncovering potential areas for improvement and strategic investment.

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Additionally, the report explores the DBE's accounting practices and financial reporting
mechanisms, assessing the transparency, accuracy, and reliability of financial information. By
scrutinizing key financial metrics and trends, it aims to provide insights into the bank's financial
health and adherence to accounting standards, thereby fostering trust and confidence among
stakeholders.

Ultimately, the purpose of this report is not only to dissect the workings of the DBE but also to
offer actionable insights and recommendations for enhancing its operational efficiency, strategic
agility, and long-term sustainability. By leveraging the findings of this analysis, the DBE can
navigate the complexities of the banking landscape more effectively, capitalize on emerging
opportunities, and fulfill its mandate of driving economic development and financial inclusion in
Ethiopia.

1.3 Organization’s Mission, Vision, and Objectives

The mission, vision, and objectives of the Development Bank of Ethiopia (DBE) are
fundamental pillars that guide its strategic direction and operational endeavors towards achieving
sustainable development and economic prosperity in Ethiopia.

Mission

The Development Bank of Ethiopia is dedicated to catalyzing socio-economic transformation by

providing innovative financial solutions, fostering entrepreneurship, and facilitating
infrastructure development to empower communities and drive inclusive growth across Ethiopia.
Through our commitment to excellence, integrity, and partnership, we aim to be a catalyst for
positive change, unlocking opportunities, and creating pathways to prosperity for all Ethiopians.

Vision

The Development Bank of Ethiopia aspires to be a leading catalyst for sustainable development
and economic empowerment in Ethiopia, recognized for its excellence in financial innovation,
strategic partnerships, and impactful interventions. Guided by our vision of a prosperous and
inclusive Ethiopia, we are committed to pioneering transformative solutions, fostering resilience,
and building a vibrant economy that benefits all stakeholders.

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Objectives

Facilitating Access to Finance: To expand access to finance for underserved sectors and
regions, including small and medium-sized enterprises (SMEs), rural communities, and priority
sectors such as agriculture, manufacturing, and infrastructure.

Promoting Entrepreneurship: To foster a culture of entrepreneurship and innovation by

providing tailored financial products, technical assistance, and capacity-building programs to
aspiring entrepreneurs and startups.

Infrastructure Development: To contribute to the development of critical infrastructure

projects, including transportation, energy, water, and telecommunications, to support economic
growth and enhance the quality of life for Ethiopians.

Financial Inclusion: To promote financial inclusion and empowerment by extending financial

services to marginalized communities, women, youth, and other vulnerable groups, thereby
fostering social equity and economic resilience.

Supporting Sustainable Growth: To support sustainable economic growth by financing projects

and initiatives that promote environmental sustainability, climate resilience, and green
technologies.

Partnership and Collaboration: To forge strategic partnerships and collaborations with

government agencies, private sector entities, development partners, and civil society
organizations to leverage resources, expertise, and networks for greater impact and effectiveness.

Institutional Excellence: To uphold the highest standards of governance, transparency, and

accountability in all our operations, ensuring the efficient allocation of resources, prudent risk
management, and sustainable financial performance.

1.4. Rationale, Objectives, and Goals of Internship

The internship program serves as a bridge between academic learning and real-world application,
providing students with practical experience, exposure to professional environments, and
opportunities for skill development. The rationale behind undertaking an internship at the
Development Bank of Ethiopia (DBE) in Wolaita Sodo Town stems from the desire to gain
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firsthand insight into the operations of a leading financial institution in Ethiopia, apply
theoretical knowledge in a practical setting, and explore career opportunities in the banking and
finance sector. By immersing oneself in the day-to-day activities of the DBE, interns have the
opportunity to enhance their understanding of banking practices, financial management
principles, and organizational dynamics, thereby enriching their academic experience and
preparing for future career pursuits.

Objectives

Gain Practical Experience: The primary objective of the internship is to gain practical experience
and exposure to the operations of the Development Bank of Ethiopia. Interns will have the
opportunity to work alongside professionals in various departments, participate in real-world
projects, and apply theoretical knowledge to practical scenarios.

Develop Skills: Another objective is to develop and enhance a range of professional skills
essential for success in the banking and finance industry. This includes communication skills,
analytical skills, teamwork, problem-solving abilities, and attention to detail.

Understand Organizational Dynamics: Interns aim to gain a comprehensive understanding of the

organizational structure, culture, and processes of the DBE. By observing and participating in
day-to-day activities, interns will gain insights into how the bank operates, makes decisions, and
serves its clients.

Contribute to Projects: Interns will have the opportunity to contribute to specific projects and
initiatives within the DBE. By actively participating in projects, interns can make meaningful
contributions, demonstrate their abilities, and add value to the organization.

Explore Career Pathways: Finally, the internship provides an opportunity for interns to explore
potential career pathways in the banking and finance sector. By gaining exposure to different
departments and roles within the DBE, interns can clarify their career goals, identify areas of
interest, and make informed decisions about their future career paths.

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Goals

Acquire Knowledge: The primary goal of the internship is to acquire knowledge and practical
skills relevant to the banking and finance industry. This includes understanding banking
operations, financial analysis, risk management, customer service, and regulatory compliance.

Build Networks: Interns aim to build professional networks within the DBE and the broader
banking industry. By connecting with professionals, mentors, and peers, interns can expand their
professional network, seek guidance and mentorship, and explore potential job opportunities.

Demonstrate Competence: Interns aspire to demonstrate their competence, professionalism, and

readiness for the workplace. By delivering high-quality work, meeting deadlines, and
collaborating effectively with colleagues, interns aim to showcase their capabilities and build a
positive reputation within the organization.

Receive Feedback: Interns seek feedback and constructive criticism to identify areas for
improvement and further development. By receiving feedback from supervisors, mentors, and
peers, interns can enhance their skills, address weaknesses, and continue to grow both personally
and professionally.

Overall, the internship at the Development Bank of Ethiopia in Wolaita Sodo Town aims to
provide a valuable learning experience, facilitate skill development, and prepare interns for
future careers in the banking and finance sector. Through hands-on experience, mentorship, and
professional development opportunities, interns can make meaningful contributions to the
organization while advancing their own career goals.

1.5. Data Collection

Data collection during the internship at the Development Bank of Ethiopia (DBE) in Wolaita
Sodo Town involves gathering information from various sources to support the objectives of the
internship and the analysis conducted. The process of data collection encompasses both primary
and secondary methods, tailored to the specific focus areas identified for the internship.

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Primary Data Collection

Observation: Interns engage in direct observation of the bank's operations, processes, and
interactions among staff and clients. By immersing themselves in the work environment, interns
gain firsthand insights into how the bank functions on a day-to-day basis.

Interviews: Interns conduct structured or semi-structured interviews with employees, managers,

and other stakeholders within the DBE. These interviews provide an opportunity to gather
qualitative data, insights, and perspectives on various aspects of the bank's operations,
challenges, and opportunities.

Surveys: Interns may design and administer surveys to gather quantitative data from employees,
customers, or other relevant stakeholders. Surveys can be used to collect feedback, assess
satisfaction levels, or gather specific information related to the internship objectives.

Documentation Review: Interns review internal documents, reports, policies, procedures, and
other relevant materials provided by the DBE. This includes financial statements, strategic plans,
operational manuals, and regulatory documents, which serve as valuable sources of information
for analysis.

Secondary Data Collection

Literature Review: Interns conduct a literature review to explore existing research, studies,
articles, and publications related to the banking industry, financial management practices, and
relevant theoretical frameworks. This secondary research provides context, insights, and
theoretical underpinnings for the internship project.

Online Research: Interns utilize online databases, academic journals, industry reports, and
reputable websites to gather secondary data and information relevant to the internship objectives.
Online research enables interns to access a wide range of sources and perspectives to inform
their analysis.

Data Analysis Tools: Interns may use data analysis tools such as Excel, statistical software, or
specialized banking software to analyze quantitative data collected during the internship. These

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tools facilitate data organization, manipulation, and visualization to derive meaningful insights
and conclusions.

Peer Discussions: Interns engage in discussions with peers, mentors, supervisors, and other
professionals to exchange ideas, seek feedback, and gain additional perspectives on the
internship project. Peer discussions provide opportunities for collaboration, learning, and
reflection throughout the data collection process.

1.6. Scope

Given the limited timeframe of 10 days, the focus of the internship will primarily be on specific
departments or areas within Development Bank , allowing the intern to gain in-depth insights
and valuable experience within a concentrated period. The scope of the internship will
encompass the following major areas:
Marketing Department: The intern will have the opportunity to shadow marketing professionals
and gain practical exposure to marketing strategies, campaigns, and customer engagement
initiatives. This may involve conducting market research, analyzing customer demographics and
preferences, and assisting in the development and implementation of marketing plans.
Human Resources Department: The intern will work closely with HR personnel to understand
the recruitment, training, and employee engagement processes within Development Bank . This
may involve assisting in the recruitment process, conducting training sessions, and contributing
to HR initiatives aimed at enhancing employee satisfaction and performance.
Finance Department: The intern will have the chance to delve into the financial operations of
Development Bank , including budgeting, financial analysis, and risk management. This may
involve assisting in financial reporting, analyzing financial data, and gaining insights into
investment and lending activities.
Accounting Department: The intern will gain hands-on experience in financial accounting and
reporting procedures within Development Bank . This may involve assisting in the preparation of
financial statements, reconciling accounts, and analyzing financial transactions to ensure
accuracy and compliance with regulatory standards.
Customer Service Department: The intern will interact directly with customers and frontline staff
to understand the customer service experience at Development Bank . This may involve

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shadowing customer service representatives, handling customer inquiries and complaints, and
providing feedback to improve service delivery.
Digital Banking Department: The intern will explore Development Bank 's digital banking
initiatives, including online banking platforms, mobile banking apps, and digital payment
solutions. This may involve testing digital channels, analyzing user feedback, and contributing to
the enhancement of digital banking services.
Community Outreach Department: The intern will have the opportunity to participate in
community outreach programs and initiatives organized by Development Bank . This may
involve collaborating with local organizations, schools, and community leaders to promote
financial literacy, entrepreneurship, and social responsibility.

1.7. Limitations of the report

This study has been prepared on the basis of observations and experience gained during
internship period. It is confined only in the Customers Service Department.
The following are the limitations of the study:

 The bank’s policy on keeping some matters confidential prevented from analyzing
different activities.
 The interpretation and conclusion were drawn within the limitations of individual’s
knowledge and judgment abilities and on the basis of data provided and other
published and unpublished sources. So it may lack the professional and expert touch.
 This report takes into consideration only about general activities and does not include
the minor details about each and every activity performed in the bank due to the time
constraint.

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 CHAPTER TWO

OVERVIEW OF THE ORGANIZATION

2. Introduction
This chapter provides a comprehensive overview of the Development Bank of Ethiopia (DBE),
with a specific focus on the branch located in Wolaita Sodo Town. By delving into the main
activities, products, hierarchy, and organogram of the organization, this chapter aims to offer
readers a deeper understanding of the DBE's role, structure, and operations within the local
context.

2.1. Brief Overview

The Development Bank of Ethiopia (DBE) stands as a cornerstone in Ethiopia's economic

development landscape. Established in 1909, the DBE has been instrumental in financing
projects and initiatives aimed at driving sustainable growth and development across the nation.
With its mandate firmly rooted in fostering economic progress and poverty reduction, the DBE
has evolved into a leading development finance institution, playing a pivotal role in various
sectors of the economy.

The Development Bank of Ethiopia (DBE) is a leading financial institution dedicated to

catalyzing economic development and fostering inclusive growth across Ethiopia. Established
with a mandate to provide innovative financial solutions, the DBE plays a pivotal role in
supporting entrepreneurship, infrastructure development, and job creation in various sectors of
the economy. As one of the key players in Ethiopia's banking sector, the DBE is committed to
driving socio-economic transformation and advancing the country's development agenda.

2.2. Major Activities

The DBE engages in a range of activities aimed at promoting economic development and
financial inclusion. These activities include:

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Providing loans and financial assistance to businesses, entrepreneurs, and development projects.

Facilitating access to finance for priority sectors such as agriculture, manufacturing,

infrastructure, and small and medium-sized enterprises (SMEs).

Offering specialized financial products and services tailored to the needs of clients, including
term loans, working capital financing, project finance, and trade finance.

Supporting infrastructure development projects, including transportation, energy, water supply,

telecommunications, and urban development initiatives.

Promoting innovation and entrepreneurship through capacity-building programs, technical

assistance, and advisory services for aspiring entrepreneurs and startups.

2.3. Products
The DBE offers a diverse range of financial products and services designed to meet the needs of
its clients and support various stages of economic development. These products include:

Term Loans: Long-term financing for investment projects, capital expenditures, and business
expansion initiatives.

Working Capital Financing: Short-term financing to cover operational expenses, inventory

purchases, and day-to-day business activities.

Project Finance: Structured financing for large-scale infrastructure projects, renewable energy
initiatives, and industrial development ventures.

Trade Finance: Financing solutions to support international trade transactions, import-export

activities, and trade-related investments.

Microfinance: Financial services tailored to the needs of microenterprises, small-scale farmers,

and rural communities to promote financial inclusion and poverty reduction.

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2.4. Hierarchy and Organogram

The DBE operates within a hierarchical organizational structure designed to facilitate decision-
making, coordination, and efficient management of resources. The organogram typically
includes the following key positions and departments:

Board of Directors: Provides strategic guidance, oversight, and governance for the DBE's
operations.

Executive Management: Oversees the day-to-day management and administration of the DBE,
including setting strategic priorities, managing risk, and ensuring compliance with regulatory
requirements.

Departments: The DBE is organized into various departments responsible for specific functions,
including credit analysis, loan processing, risk management, finance, human resources, and
corporate affairs.

Branch Offices: The DBE operates through a network of branch offices located across Ethiopia,
each serving specific regions and communities. Branch offices play a critical role in delivering
financial services, managing client relationships, and promoting local economic development.

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 CHAPTER THREE

3. WHAT I HAVE LEARNED

3.1. Duration of Internship

My internship at Development Bank spanned a period of 10 days, during which I had the
opportunity to immerse myself in various departments and gain valuable insights into the bank's
operations, culture, and impact within the community.

3.2. Departments Assigned

Throughout my internship, I was assigned to the following departments within Development

Bank

 Marketing Department
 Human Resources Department
 Finance Department
 Customer Service Department
 List of Activities Performed and Performance

Marketing Department
 Conducted market research to understand customer demographics and preferences.
 Assisted in the development of marketing campaigns and promotional materials.
 Contributed ideas for enhancing brand visibility and customer engagement.
 Collaborated with the marketing team to organize community outreach events.
Human Resources Department

 Participated in the recruitment process by screening resumes and conducting initial

interviews.
 Assisted in organizing employee training sessions and orientation programs.
 Compiled employee feedback and suggestions for improving workplace culture and
morale.
 Shadowed HR professionals to gain insights into employee relations and performance

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 management practices.
Finance Department

 Assisted in financial reporting and analysis by compiling data and preparing reports.
 Conducted ratio analysis to evaluate the bank's financial performance relative to industry
benchmarks.
 Reviewed budgetary allocations and expenditures to ensure compliance with financial
regulations.
 Learned about risk management techniques and strategies for mitigating financial risks.
Customer Service Department

 Shadowed customer service representatives to observe interactions with customers and

handling of inquiries.
 Assisted in resolving customer complaints and addressing service issues in a timely
manner.
 Learned about the importance of delivering exceptional customer service and building
long-term relationships with clients.
 Contributed ideas for improving the customer service experience and streamlining
processes.

3.3. Overall Experience

My internship experience at Development Bank was incredibly rewarding and enriching. I
gained valuable hands-on experience in various departments, allowing me to develop a holistic
understanding of the bank's operations and functions. I had the opportunity to work alongside
experienced professionals who were generous with their time and knowledge, providing
guidance and mentorship throughout my internship.

I learned the importance of teamwork, communication, and adaptability in a dynamic work

environment. I also gained insights into the intricacies of banking operations, including
marketing strategies, HR practices, financial analysis, and customer service principles.
Moreover, my internship at Development Bank reaffirmed my passion for the financial industry
and sparked a desire to continue learning and growing in this field.

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3.3.1. In terms of improving practical skills

As the main purpose of the internship at the university levelly is facilitate or develop student
learning opportunities outside the class room, this experience provides the opportunity to apply
class room theory to real word station. Most of the courses we took in class dealt with the
theoretical side of engineering. Some lecturers took the initiative and tried to illustrate the
practical part of this field by displaying different graphic images in their lecture or suggested
materials that were more or less illustrative or even took us to the site to show what the actual
engineering looked like. But these trials were futile and failed to give us the clear picture.
Although this visits helped us get a little more acquainted with the tangible part, they were
simply not enough. This internship program was exactly what we needed to nurture the lack of
practical skills we had. While we were on the job we got the opportunity to learn different

15
3.3.2 In terms of improving interpersonal communication skills

Improving our interpersonal communication skills, we began to interact with many

workers in the Company. During the internship experience we had improved our
communication skills in very good manner which we could talk to any person at
the staff with confidence and as easily as possible.

3.3.3. In terms of improving team work skills

It is very difficult to go ahead with the works. And as part of a team, an engineer
should have to work with a positive attitude within a group for the success of a
project. When called upon to lead, an engineer must have good managerial and
organizational skills. Confident and enthusiastic engineers are able to succeed by
gaining the trust of co-workers.

Good team worker possesses the following skills:-

 Communicates constructively.
 Listens actively.
 Functions as an active participant.
 Shares openly and willingly.
 Cooperates and pitches in to help.
 Shows commitment and monitoring to the team.

3.3.4. In terms of improving Leadership skills

We have observed that leadership is great responsibility that one has to make the
team he is leading initiated and encourage. This will enable us to get a good result,
so that our work is as perfect as or more than expected. To improve these
leadership skills we tried to improve the following basic thing

- Listing effectively
- Good speaking ability
- Critical thinking
- Motivate other
- Be respect other idea

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 - Good management skills.
- Knowing the subject one is working on thoroughly

3.3.5. In terms of understanding about Work Ethics related issues

Work ethics are very important part of our personal as well as professional life.
With the proper work ethics, a person become more responsible and focused
towards his/her job. The person also cultivates a sense of achievement around his
work. This definitely has some positive effects on his/her career growth as well as
on the progress of the company.
Some characteristics of good work ethics are:-
- Honest
- Respect to other.
- Cooperate
- Punctual
- Loyalty
- Transparence

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 CHAPTER FOUR

4. ANALYSIS
4.1. Financial Analyses

Ratio Analysis

Liquidity Ratios: These ratios assess the bank's ability to meet short-term obligations. For
example, the Current Ratio compares current assets to current liabilities, indicating whether the
bank has enough short-term assets to cover its short-term liabilities.

Solvency Ratios: Solvency ratios evaluate the bank's long-term financial stability and its ability
to meet long-term obligations. Examples include the Debt-to-Equity Ratio, which measures the
proportion of debt to equity in the bank's capital structure.

Profitability Ratios: These ratios gauge the bank's ability to generate profits relative to its
revenue, assets, or equity. Key ratios include Net Profit Margin, Return on Assets (ROA), and
Return on Equity (ROE).

Efficiency Ratios: Efficiency ratios measure how effectively the bank utilizes its assets to
generate revenue. Examples include Asset Turnover Ratio and Operating Expense Ratio.

Index Analysis

Stock Market Performance: If the bank is publicly traded, index analysis involves assessing its
stock price movements, trading volume, and other market indicators. This analysis provides
insights into investor sentiment and market perception of the bank's performance.

Economic Indicators: Index analysis also considers broader economic indicators such as GDP
growth, inflation rate, interest rates, and industry-specific indicators. These indicators help
contextualize the bank's performance within the broader economic environment.

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Common Size Analysis

Common Size Income Statement: This analysis expresses each line item on the income statement
as a percentage of total revenue. It helps identify trends and patterns in the composition of
revenue and expenses over time.

Common Size Balance Sheet: Similarly, the common size balance sheet represents each asset,
liability, and equity item as a percentage of total assets. It allows for a comparison of the relative
proportions of different components of the balance sheet.

Trend Analysis

Revenue Trends: Trend analysis of revenue examines the bank's revenue growth or decline over
multiple periods. It helps identify patterns, cyclical fluctuations, or changes in revenue sources.

Profit Trends: Similarly, trend analysis of profits assesses the bank's profit trajectory over time,
identifying factors driving profitability trends.

Asset Growth Trends: This analysis examines the growth or contraction of the bank's assets over
time, indicating the pace of expansion or changes in asset composition.

Debt Trends: Trend analysis of debt assesses changes in the bank's borrowing patterns, debt
levels, and debt management strategies over time.

4.2. SWOT Analysis

Strengths

Strong Capital Base: Highlight if the bank has substantial capital reserves, which can provide a
cushion against unexpected losses and support lending activities.

Established Reputation: If the bank has a long history and a positive reputation in the
community, it can leverage this trust to attract customers and investments.

Skilled Workforce: Emphasize if the bank has a talented and experienced team capable of
delivering high-quality financial services and innovative solutions.

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Weaknesses:

Limited Technological Infrastructure: If the bank lacks modern technology and digital banking
capabilities, it may struggle to compete with more technologically advanced rivals.

Slow Decision-Making Processes: If bureaucratic hurdles or hierarchical structures hinder quick

decision-making, it can impede responsiveness to market changes and customer needs.

Dependency on Traditional Banking Methods: If the bank relies heavily on outdated or manual
processes, it may face efficiency challenges and struggle to keep up with industry trends.

Opportunities:

Expansion of Services: Identify opportunities to expand the bank's service offerings into new
markets or geographic regions, tapping into unmet financial needs and growing customer
segments.

Introduction of New Financial Products: Explore opportunities to introduce innovative financial

products and services that cater to evolving customer preferences and emerging market trends.

Government Initiatives: Highlight if there are supportive government policies or initiatives

aimed at promoting economic growth or financial inclusion, which the bank can capitalize on.

Threats:

Competition: Competition from other financial institutions, including both traditional banks and
fintech startups, can erode market share and pressure margins.

Economic Downturn: Economic downturns or recessions can lead to increased loan defaults,
reduced demand for credit, and lower investment returns, posing financial challenges for the
bank.

Regulatory Changes: Changes in banking regulations or compliance requirements can increase

operating costs, limit flexibility, and introduce legal risks for the bank.

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 CHAPTER FIVE

RECOMMENDATIONS AND CONCLUSIONS

5.1. Based on Strategies Developed in SWOT

Leverage Strengths

Capitalize on the bank's established reputation and strong capital base to expand its presence in
rural areas where financial services are limited. Develop targeted marketing campaigns
emphasizing trustworthiness and community involvement.

Establish specialized lending divisions focused on sectors where the bank has expertise, such as
agriculture or small business loans. Tailor financial products to meet the unique needs of these
sectors. Enhance customer service by investing in training programs for staff to improve
interpersonal skills and deepen relationships with clients.

Address Weaknesses

Invest in upgrading technological infrastructure to streamline processes and improve efficiency.

Implement a robust digital banking platform to offer online banking services, mobile payment
solutions, and automated loan processing.

Simplify decision-making processes by decentralizing authority and empowering branch

managers to make lending decisions within predefined limits. Implement regular performance
reviews to ensure accountability and transparency. Diversify revenue streams beyond traditional
banking activities by exploring opportunities in wealth management, insurance, or advisory
services.

Seize Opportunities

Collaborate with local governments and development agencies to access funding for
infrastructure projects or small business development initiatives. Leverage government
incentives and grants to expand lending activities in priority sectors.

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Partner with fintech startups to develop innovative financial products targeting the unbanked
population. Explore opportunities in digital payment systems, peer-to-peer lending platforms, or
block chain-based solutions.

Expand the bank's footprint in neighboring regions or cities with growing economies and
untapped market potential. Establish strategic partnerships with local businesses or organizations
to facilitate market entry and customer acquisition.

Mitigate Threats

Monitor competition closely and regularly benchmark products and services against industry
standards. Conduct market research to identify emerging trends and customer preferences,
allowing the bank to stay ahead of competitors.

Strengthen risk management practices by conducting regular stress tests on loan portfolios and
maintaining adequate provisions for potential loan losses. Implement strict lending criteria and
credit monitoring procedures to minimize default risks. Stay informed about changes in
regulatory requirements and ensure compliance with banking regulations to avoid penalties or
legal challenges. Invest in ongoing staff training on regulatory compliance and risk management
best practices.

5.2. Conclusion

In conclusion, the analysis conducted in this report has provided valuable insights into the
current state and future prospects of the Development Bank of Ethiopia in Wolaita Sodo Town.
Through the SWOT analysis, we have identified key internal strengths such as a robust capital
base and an established reputation, which can be leveraged to seize external opportunities such
as expanding into underserved markets and introducing innovative financial products. However,
we have also acknowledged internal weaknesses, such as limited technological infrastructure and
slow decision-making processes, as well as external threats, including competition and
regulatory changes, which must be addressed to ensure sustainable growth and resilience.

Based on these findings, concrete recommendations have been proposed to capitalize on

strengths, address weaknesses, seize opportunities, and mitigate threats. These recommendations
are tailored to the bank's specific context and strategic objectives, emphasizing practicality and

22
feasibility. It is imperative that these recommendations are not merely acknowledged but actively
implemented, with full commitment from all stakeholders, to drive positive change and enhance
the bank's competitiveness and effectiveness.

Looking ahead, the future outlook for the Development Bank of Ethiopia in Wolaita Sodo Town
is promising, provided that the recommended strategies are executed with diligence and
foresight. By embracing innovation, fostering collaboration, and maintaining a proactive
approach to strategic planning, the bank can position itself as a leader in the region's financial
sector, delivering value to its customers, shareholders, and the broader community. In this
dynamic and ever-evolving landscape, success will hinge on the bank's ability to adapt, innovate,
and stay true to its mission of fostering economic development and financial inclusion in
Ethiopia.

5.3. Recommendations

Recommendations for the Development Bank of Ethiopia in Wolaita Sodo Town stem from a
comprehensive analysis of its strengths, weaknesses, opportunities, and threats. Leveraging its
robust capital base and established reputation, the bank should prioritize expanding its services
into underserved rural areas, tailored to the specific needs of local communities. This expansion
should be supported by investments in modernizing technological infrastructure to enhance
operational efficiency and customer experience. Additionally, streamlining decision-making
processes and empowering frontline staff can facilitate quicker responses to customer needs and
market dynamics. Collaboration with fintech startups and government initiatives can unlock new
opportunities, while rigorous risk management practices and compliance with regulatory changes
are vital for mitigating threats. By implementing these recommendations with determination and
foresight, the Development Bank of Ethiopia in Wolaita Sodo Town can strengthen its position
as a catalyst for economic development and financial inclusion in the region.

23
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