Aimed to support civil society organizations/CSOs/ and to create inclusive financial accessibility, a new bank named Progress bank announces that it is under formation.
On Tuesday May 31, 2022, the organizing committee of the bank gave a press conference on the formation of the bank. As indicated on the stage, with the establishment of different fund generating schemes, the bank is said to help minimize CSOs dependency on foreign aid and helping to pave way for self-reliance.
Health, education, technology, sanitation and climate change are key priority areas of intervention of the bank. Women, financial empowerment and creation of employment for both rural and urban youth, agriculture are also major development priorities of the bank.
According to the organizing committee, the bank acquired its name from the Ministry of Trade and secured the permission from the national bank of Ethiopia to sell shares and embarked on the formal bank operation.
As indicated by the organizing committee, the formation of the bank has officially been launched at the friendship park on May 11, 2022 and commenced sale of shares. The price of each share is 1,000 birr which is currently being sold in 16 banks including Commercial bank of Ethiopia.
The idea to form a bank was delayed due to the restrictive CSO proclamation which restricts CSOs to form financial institution. However, following the replacement of proclamation no 621/2009 by proclamation no 1113/2019 has opened up the space to allow CSOs to establish a development support bank.
A group of CSO operators and private sector were consulted and initiated to establish this specialized bank that aims to cater for the economic and social development and sustainability without pursuing exclusively profit seeking goals.