Bunna Bank Reports 930.1 Million Birr Profit Amid Challenges
Bunna Bank S.C. achieved a remarkable 930.1 million birr pre-tax profit amid economic challenges, including inflation and forex shortages. Deposits grew by 20% to 43.87 billion birr, with loans reaching 38.87 billion birr (11.8% growth) and foreign exchange earnings totaling $167.6 million. The bank’s assets rose to 54.53 billion birr, while digital banking transactions exceeded 21.1 billion birr, supported by a 31.8% increase in customers to over 4 million. With 474 branches and a new five-year plan emphasizing digital expansion, Bunna Bank continues to strengthen its position in Ethiopia’s banking sector.
Digital Ethiopia 2025 Drives Internet Users Past 42 Million
The Digital Ethiopia 2025 Strategy has increased internet users to over 42 million, up from 17 million at its launch, according to the Ministry of Innovation and Technology (MoIT). Reforms like Ethio Telecom’s partial privatization and telecom sector liberalization, coupled with improved electricity access and new tier-3 data centers, have fueled this growth. Over 800 government services are now online, supported by strategies for e-commerce, digital governance, and public service enhancement. The 5 Million Ethiopian Coders program is building a skilled workforce, with plans underway for the Digital Ethiopia 2030 Strategy to foster an inclusive digital economy. Fana
Ethiopia Opens Banking Sector to Foreign Competition
Ethiopia’s parliament has passed a landmark law allowing foreign banks to operate in the country, enabling them to establish branches, and subsidiaries, or acquire up to 40% stakes in local banks. The reform, part of broader efforts to attract foreign investment, aims to strengthen the economy and foster competition in a banking sector currently dominated by the state-owned Commercial Bank of Ethiopia. Despite concerns about local banks competing with global players, central bank governor Mamo Mihretu emphasized the benefits of competition. This move follows Ethiopia’s recent economic reforms, including floating the birr and adopting interest rate-based monetary policies.
Ethiopian SOE Reform: Focus on Strategy, Not Privatisation
Brook Taye, the CEO of Ethiopian Investment Holdings (EIH), is spearheading reforms for Ethiopia’s state-owned enterprises (SOEs) without rushing into privatization. Established in 2021, EIH manages a $40 billion portfolio, including Ethiopian Airlines, Ethio Telecom, and key enterprises in electricity, manufacturing, and finance.
While acknowledging challenges like debt risks and loss-making sectors, Brook emphasizes the focus on commercial viability over quick sell-offs. For example, efforts to sell a 45% stake in Ethio Telecom have faced hurdles, but domestic investors are acquiring a 10% share as part of Ethiopia’s preparation for its first stock exchange, set to launch in January 2025.
Brook champions Ethiopian Airlines’ model of commercial independence and believes liberalization, rather than privatization, will unlock Ethiopia’s economic potential. Read more
World Bank Boosts Ethiopia’s Financial Sector with $700M Support
The World Bank has approved a $700 million credit under the Financial Sector Strengthening Project (FSSP) to enhance the stability of Ethiopia’s financial sector. The project will modernize the National Bank of Ethiopia’s regulatory framework, reform governance at the Commercial Bank of Ethiopia, and transform the Development Bank of Ethiopia into a sustainable development finance institution.
The initiative also includes capacity-building efforts to ensure the resilience of these institutions, contributing to economic growth and financial accessibility. Maryam Salim, World Bank Country Director, emphasized the project’s role in fostering economic stability and inclusive growth in Ethiopia.
Amhara Bank Launches Aba QR App for Seamless Digital Transactions
Amhara Bank has introduced Aba QR, a cutting-edge app that simplifies cashless payments for customers and merchants. Launched by CEO Dr. Yohannes Ayalew, the app enables users to scan QR codes to make secure payments directly from their mobile devices.
Aba QR offers merchants real-time product updates, sales reporting, and instant digital receipts, while customers benefit from detailed transaction information and fast, cashless payments.
Aligned with NBE’s new QR code standard, the app promotes interoperability among financial institutions, boosting efficiency and economic activity. This launch is part of Amhara Bank’s drive to expand digital banking services across Ethiopia. Ethiopian Business Review
NBE Launches Online Platform and Hotline for Financial Consumer Complaints
The National Bank of Ethiopia (NBE) has introduced an online platform and hotline (7230) to assist customers in filing complaints against financial institutions. This initiative supports transparency and accountability in Ethiopia’s financial sector.
Consumers can escalate unresolved complaints to NBE if not addressed within ten business days. The platform is part of NBE’s Financial Consumer Protection and Education Directorate (FCPED), established after the 2020 directive mandating financial institutions to handle complaints efficiently.
With support from the United Nations Capital Development Fund, the platform also promotes financial literacy and consumer rights, ensuring a more inclusive and secure financial ecosystem for all Ethiopians. Shega
Siket Bank Disburses Over 9 Billion Birr in Loans in 2023/24 Financial Year
Siket Bank has reported disbursing more than 9 billion birr in loans during the 2023/24 financial year, with the business and services sectors comprising 72% of this amount. Other significant contributions include manufacturing (12%), construction (9%), and agriculture (6%).
The bank, which recently upgraded from a microfinance institution to a full bank, also saw a 36% increase in total deposits, reaching 4.9 billion birr. Its net profit rose by 50%, totaling 1.54 billion birr.
Siket Bank’s assets grew by 30%, reaching 15.9 billion birr as of June 30, 2024. Despite challenges like inflation and global economic slowdowns, the bank successfully implemented core banking systems, enhancing its operations and customer service. Capital Ethiopia
Ethiopian Securities Exchange Launches ESX Academy
The Ethiopian Securities Exchange (ESX) has launched the ESX Academy to promote investor education and financial literacy in Ethiopia. Developed in collaboration with Miella Technology PLC and supported by Financial Sector Deepening Ethiopia (FSDE), the Academy offers digital learning platforms with interactive courses ranging from beginner to advanced levels.
The introductory course, featuring 10 modules on key capital market concepts, is available for free and provides a certificate upon completion. The ESX Academy aims to create a knowledgeable base of capital market participants to foster a thriving financial ecosystem in Ethiopia.
For more information, visit ESX Academy.
Siinqee Bank Plans to Enter Capital Markets as an Investment Bank
Siinqee Bank has announced plans to establish an investment bank as part of its strategy to enter Ethiopia’s growing capital market. The bank’s shareholders have approved the initiative, and Deloitte has been selected to develop a business plan within three months. This move aligns with the National Bank of Ethiopia’s directive to support the development of the capital market while safeguarding traditional banking.
Siinqee Bank, formerly Oromia Credit & Saving S.C., has reported strong financial growth, including a 72.3% increase in total assets and an 82% rise in net profit. The bank’s expansion includes a growing loan portfolio, increasing deposits, and enhanced foreign currency holdings.
The establishment of the investment bank will position Siinqee Bank as a key player in Ethiopia’s evolving financial landscape. Addis Fortune
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