Second Islamic bank, Hijra, under formation

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Hijra Bank is under formation after being approved to provide sharia banking services.
The idea of establishing the bank came after exploring more management and interest-free banking consultancy firm and activities that needs to address financial inclusion.
According to the founding member of the bank, the bank will officially announce today and begin selling shares tomorrow in different parts of the country.
The founders of the banks are university lecturers, consultants in the financial sector, and business figures.
Creating awareness in the society’s beginning from the date of issuing the license has been done by 36 founding members of the bank in Shasemene, Jimma, Harer, Adama, and Semera which will be followed by other parts of the country.
Hijra wants to address the majority of Muslim communities who don’t have access to finance.
The founder hopes to collect the 500 million birr paid up capital within six months.
The shares are open for every individual, firm and even business as long as their businesses are not against the laws of Sharia.
While financial inclusion has improved in Ethiopia, it still lags behind the rest of sub-Saharan Africa.
The percentage of adults in Ethiopia with a bank account increased from 22 percent in 2014, to 35 percent in 2017, according to the World Bank Global Findex database.
In Kenya by contrast, 82 percent of adults had a bank account in 2017.
The establishment of the bank will support the government plan of financial inclusion to reach into 60 percent by 2020, said Ahbabu Abdela, one of the founding members of the bank.
Interest-free banking like ZamZam is in the process of formation after a long wait.
Currently, there are 10 commercial banks operating in the country offering interest-free banking products and services in a separate window, able to mobilize over 30 billion birr.