Zemen Bank, one of the top in terms of earnings per share, awards a global giant PricewaterhouseCoopers (PwC) to design a ten year road map.
At the ceremony held on Tuesday December 15, the bank and the consultancy firm has signed a five year strategic plan besides the ten year road map.
Abebe Dinku (Prof), Chairperson of Board of Directors of Zemen, said that the banking sector in Ethiopia is one of the fastest growing sector in the country and reminded that the coming years will be very tough for the sector since close to 20 new banks are under formation which double the number of currently existing banks in the market.
“We expect it to review the institutional capacity and current business model and the firm will propose practices that are innovative and workable on the corporate strategy plan that will enable the bank to shoot up in all aspects,” he said.
“The five year financial projection is also very much important,” he added.
Dereje Zebene, President of Zemen, said that the company is selected from four international companies by their technical and financial offer, “To be honest the bank focused on technical evaluation to hire the consultant,” he stated.
“We gave priority to companies that have been engaged in strategy development. We have through references seen what they have developed in other countries and the bank has also contacted the foreign banks which the consultants support,” he elaborated.
The PwC road map will show the way how Zemen will operate. The strategy also considers the financial sector development in the country and the region and it will also look into the regional integration.
In its 12 year history the financial firm has applied two different five year strategic plans. While due to the effect of COVID 19, it has been delayed in engaging or hiring of another strategic planner that is to be conducted by an independent consultant.
Dereje said that in the past over one year, his bank had operated by its own interim strategy that evaluates and fills the gap of the previous strategic plans.
“The consultant that has wide expertise in the sector and Africa in general and in the region particularly is expected to show ways on how the bank shall compete in the fast growing sector,” Dereje added.
The bank has introduced different new customer based services and as a result the first two strategic plans were very successful and a testimony to this is its soaring performance and profit.
Meanwhile the invitation was for all but only foreign consultancy firms were involved on the bid.
PwC, based in London, has offices in more than 155 countries and is one of the leading global professional service providers. It is however, its first time to offer a strategic plan in the financial sector support in Ethiopia. It has however been working with several financial firms on IFRS conversion.
The road map will be designed in three months time.
In the ended financial year Zemen has amassed over a billion birr net profit which is a sharp increment compared with the 650 million birr of profit in the preceding year.