The Ethiopian Deposit Insurance Fund (EDIF) has gathered a total of 5.2 billion Birr in premiums from banks and microfinance institutions over the past nine months, showing an 11.1% increase compared to last year.
At a press conference, EDIF CEO Desalegn Ambaw said the fund currently protects up to 100,000 Birr per depositor per institution. That means if a bank or microfinance institution fails, depositors can be reimbursed up to that amount.
He added that 97% of all bank depositors are now covered by this safety net, with 31 banks and 55 microfinance institutions already signed up as members.
Here’s how the 5.2 billion Birr was collected:
- Private banks: 2.67 billion Birr (51.3%)
- Commercial Bank of Ethiopia: 2.47 billion Birr (47.5%)
- Microfinance institutions: 59.49 million Birr (1.2%)
EDIF is not just collecting money — it’s also investing wisely. The fund’s investment portfolio has reached 12.11 billion Birr, with more than 92% placed in treasury bonds, earning a profit of 689.45 million Birr in just nine months.
“Our goal is to protect depositors and keep the financial system stable,” Desalegn said. “We assess and collect premiums, invest them safely, and will reimburse insured depositors if any financial institution fails.”
Merga Wakweya, EDIF’s Operations Director, highlighted that the fund plays a key role in preventing panic and promoting trust in the financial system — much like similar insurance schemes in other countries.
EDIF operates under the supervision of the National Bank of Ethiopia. Its creation is an important step toward making Ethiopia’s financial sector more secure and reliable, helping to build public trust and support long-term economic growth.
Source: ENA
