During its extraordinary session with banks, the National Bank of Ethiopia (NBE) applauds the success of the financial sector which has been attained over the past four years.
Yinager Dessie, Governor of NBE, said that in the past four years major reforms have been undertaken within the financial industry which has reeled in significant results in different measures.
He stated that the financial sector had registered a massive change through the reform period which expanded its asset on average by 24.5 percent every year for the past four years.
Frezer Ayalew, Director of Banking Supervision Directorate at NBE, said that in the financial year that ended in 2019, the total assets of banks was 1.3 trillion birr which has now shot up by 92 percent to reach 2.5 trillion birr at the end of the 2021/22 financial year.
Deposit mobilization is the other area which the financial sector secured a huge success with 25 percent growth every year since 2019. “Compared to 2019 the deposit mobilization has expanded by 93 percent by June 2022 to reach 1.74 trillion birr from 899.8 billion birr. Similarly the banking sector’s total capital has expanded to 199 billion birr by 27 percent on yearly growth from 99 billion birr in 2019,” the Banking Supervision head said.
Over the four year period, the number of deposit accounts has increased by 108 percent to reach 83.3 million.
Regarding profitability, the banking sector has amassed close to 50 billion birr in net profit in the just concluded financial year which is an increased of 122 percent in comparison to 2019. In the financial year that ended on June 2019, the banking sector’s net profit after tax was 22.5 billion birr.
In loan and advance development, the private sector has accessed 889.6 billion birr in the past financial year that was 377.6 billion birr in 2019, while the total loan and advance excluding bonds has climbed to 1.09 trillion in June 2022 which is over double the amount when compared to four years ago.
Frezer said that the banking sector has continued its safe and sound operation. “The banking sector capital adequacy ratio stands at 16.04 percent above the internationally required standard of eight percent. Similarly the non performing loan ratio is 3.87 percent against five percent of the requirement, while liquidity ratio at the banking sector is 27.05 percent, which NBE’s threshold is 15 percent,” he said.
“Our banks are operating in an internationally required model that makes them financially sound,” the Director added.
He reminded that the policy bank, Development Bank of Ethiopia, attained massive progress in the past few years to return to its prudent operational status.
The banking industry which registered significant change is the Interest Free Banking (IFB) with two full-fledged banks already operational; and besides one firm which transformed to a bank from a micro finance institution, one more bank has secured its license to open its door. In addition to the two full-fledged banks, 11 banks are providing IFB services through windows. As of March 2022 over 11 million accounts holders have registered for the deposit mobilization of 117.2 billion birr in the IFB.
“35.5 billion birr have been availed through 4,842 IFB credit accounts on the financing side,” Frezer said.
During the occasion, bank executives appreciated the initiative of the regulatory body to call such kind of appreciation meetings and for its recognition of the success that the financial industry attained in the stated period.
WorldVeg holds consultative workshop on bio-pesticide adoption
World Vegetable Center Ethiopia held a consultative workshop on bio-pesticide regulation on August 9, 2022, with participants from both private and government sides engaging in the workshop discussing on policy gaps and bottlenecks in production, introduction and application of bio-pesticides as an IPM component.
“Even though through time we are seeing changes in the agriculture sector, yet the vegetable sector is backward than others, one of the problems is finding eco friendly bio pesticides,” said Webetu Bihon, country representative of World Vegetable Center to Ethiopia, indicating that introducing and promoting the production of local eco-friendly pesticides using local plants as a mandatory solution.
“Few have been formally recommended pesticides and the ones being used in Ethiopia are imports from Kenya and Holland,” Webetu explained.
As indicated on the session, Bio- led management of pests’ coverage is also small but gradually increasing in the ornamental sector.
“Provided they are applied correctly, bio-pesticides can provide excellent control of pests and have a host of other positive attributes that surely make them the weapons of choice for the future sustainable pest control; it also has a potential to expand greatly as products are improved and better methods for using them in IPM systems are developed,” the county representative underlined.
As pest’s importance will increase with the current and the future state of agriculture in Ethiopia, the session recommended public institutions, donors, NGOs, actors to support the ways and means of commercialization and use of bio-pesticides and also to place policy, regulations, directives development and implementation that promotes bio-pesticides and minimizes the use of synthetic pesticides.
AFRICAN SOLUTIONS TO AFRICAN PROBLEMS: REBOOT RESTART RESET
A typical treatment for technological devices in need of repair, from smart phones to computers, is a reboot. This usually resets the operating system, allowing for restart that sometimes means erasing and restoring the device’s operating system to original factory settings. Once reset, new apps and programs may be re-installed, as needed. This little refresher in tech serves as the perfect analogy for African solutions to African problems. Africa has not been alone in coping with plethora of problems related to Covid19, in particular education and the economy. Ethiopia, Africa in general, are on a development trajectory, guided by the aspirations of the African Union’s Agenda 2063, where education is key. The AU notes that Africa will advance with “…well educated citizens and skills revolution underpinned by Science, Technology and Innovation…”. Per usual, governments alone cannot and should not be expected to design and implement curricula and “revolutionary” advancements in a vacuum. In Education Law, Strategic Policy and Sustainable Development in Africa Michael Addaney writes, “The future of Africa is too important to be left to the African Union (AU) and national governments alone. On realizing Agenda 2063 in Africa, the chapter draws attention for the need to make conscious effort to ensure that the ordinary people and national-level public and private institutions own the process of creating the Africa we want. To achieve this …Agenda 2063 (needs) to be integrated into the existing educational system. … education-development nexus (is needed to) achieve radical transformation as envisaged in the Agenda, education is the golden key.”
Let the reset begin or resume. The Association of African Universities North America (AAU), inaugurated as a Diaspora initiative at the AU Mission in Washington DC October 2019, will host the World Conference on Education and Restitution. The hybrid event to be held in Accra, Ghana 30 August to 1 September, is themed “The Past The Present and the Future – Afrofuturism And Africa’s Development.” The three major topics are Re-Thinking Education: Towards Achieving African Renaissance; Reclaiming and Reconceptualizing African Arts, Culture and Heritage and Addressing the Pre-Requisites for the Implementation of the Africa Continental Free Trade Area (ACFTA). AAU states, “The overall aim is to reclaim and recontextualize Africana education, technology, politics, languages, histories, arts, culture, music, and spirituality toward a conscious effort of unification and rapid development of Africa.” Leading Africans in academia, the arts, sciences and technology will be hosted by the Ghana AAU Secretariat in collaboration with Pan African Heritage Museum and UNESCO.
The AAU is an international NGO founded in Rabat Morocco, 12 November 1967 with 34 public universities, now over 320 and counting. In addition to promoting academic exchange for staff and students, AAU’s diverse Pan African continental membership assures enrichment of curricula and approach to higher education through “major language and educational traditions”, essential for African driven pedagogy. It is important to note AAU’s instrumental role in mitigating disruptions caused by the COVID-19 pandemic in higher education. The majority of African universities had no academic contingencies for such an unexpected world-wide pandemic. In partnership with Sister organizations in Africa, AAU provided capacity-building workshops in online teaching and learning methods; conducted three months of training sessions, training over three hundred faculty and provided over five hundred African faculty and graduate students with online training in Research methods. This is an example of African solutions to African problems, resetting colonial pedagogies with the expertise of Africans at home and abroad.
Another aspect of the African ‘self-help’ Agenda 2063 includes ‘transforming African economies to sustainable and inclusive… through diversification and resilience.’ At the root of Africa’s problems, such as discontent leading to uprisings, are economic issues including access and opportunities for youth. And while many African millennials are curating their way out of poverty, not waiting on the status quo; inventing new technologies, products and services, other youth succumb to manipulation and miseducation, fueled by twisted narratives lacking in analysis. Ironically, this disrupts the very supply and value chain they wish to be beneficiaries of, sadly. Solutions stand primarily with Africa and her Diaspora. The Government of Barbados and the African Export Import Bank (Afreximbank) will host the first African Caribbean Trade Investment Forum 2022 (ACTIF2022) 31 August to 3 September. Hosted under the theme “One People, One Destiny: Uniting and Reimagining Our Future” the goals of the Forum are to “…foster the development of strategic partnerships between the business communities in Africa and the Caribbean Community (CARICOM) region, to bolster bilateral cooperation and increase engagement in trade, investment, technology transfer, innovation, tourism, culture, and other sectors. …contribut(ing) to the implementation of the African Continental Free Trade Agreement (AfCFTA) and the Caribbean trade development agenda…reflecting the deep-rooted ties between Africa and the Caribbean based on their shared history, culture, common identity, and destiny.”
ACTIF2022 participants include African and Caribbean Heads of State, senior government officials, business leaders, business associations representatives, development agencies, multilateral finance institutions, think-tanks and research institutions from Africa and the Caribbean. Realizing that even continental initiatives can be best realized with African Diaspora, the future of Africa continues to be bright. According to the old saying, “It is always darkest before the dawn…”. So, as we sit watching the animated circle, taking forever to load, waiting for the light of the reboot, we remain confident that problems faced will be remedied with an African reset that wipes out corrupted files. A proper reboot to reset our operating system, free of malware, viruses, spyware and any harmful software and hardware.
Dr. Desta Meghoo is a Jamaican born Creative Consultant, Curator and cultural promoter based in Ethiopia since 2005. She also serves as Liaison to the AU for the Ghana based, Diaspora African Forum.
Ermias Haile
Name: Ermias Haile
Education: Degree in Business Administration
Company name: Shega Printing and Décor Plc
Title: Owner
Founded in: 2021
What it do: Print service
Hq: Addis Ababa
Number of Employees: 4
Startup Capital: 100,000 birr
Current Capital: Growing
Reason for starting the Business: To fill the gap in the industry
Biggest perk of ownership: Being my own boss
Biggest strength: Consistency
Biggest challenge: Finance
Plan: To expand my business
First career: Teacher
Most interested in meeting: Tewodros Kassahun
Most admired person: My wife
Stress reducer: Eating
Favorite past time: Time with my wife
Favorite book: The Bible
Favorite destination: Debre Zeyt
Favorite automobile: Hyundai 2022 Santa Fe