Cooperative Bank of Oromia has announced it has registered 3.95 billion birr in profit before depreciation and provision during the 2021/22 fiscal year which is a 65.1 percent increase from last year.
The bank has distributed 84.26 billion birr in loans growing 52 percent from the previous year. In the fiscal year, through its interest free banking services the bank has mobilized 4 billion birr reaching the total to 16 billion birr, which is almost 20 percent of the total loan.
The bank’s total asset grew to 114.36 billion birr which is an increase of 40 percent. The total capital of the bank as well surpassed 12.28 billion birr with a paid-up capital 7.73 billion birr exhibiting 66 percent increase from last year.
During the 2021/22 fiscal year, the total number of its customers has reached 9 million which puts the bank as one of the leaders from the private banks. The total saving/ asset of the bank reached 96.77 billion birr showing a 36 percent increase from the previous year.
The bank earned USD 437.95 million in foreign exchange during the fiscal year. It has also expanded its reach by adding 124 new branches throughout the country totaling the number to 593.
“Cooperative of Bank of Oromia has made tremendous effort in all aspects to realize its vision of becoming the leading private bank in Ethiopia by 2025,”said Gadisa Mamo, vice president of the bank.
Cooperative Bank of Oromia registers high earnings
Ahadu bank marks maiden financial entry
Ahadu bank is said to start its operation on July 16, 2022 making it the 20th financial entrant to the country’s expanding financial sector.
The bank has rented a building from sunshine construction located around the area commonly known as flamingo, as its head office. After starting operations up until the end of September, the bank is targeting to open 50 branches all over the country, that is, 25 in Addis Ababa and 25 in the regions.
The bank has announced that when it starts its operation, it will facilitate 15 percent of its total loans to the youth and entrepreneurs. “This will have a major impact in increasing beneficiaries from the banking industry besides increasing the number of bank users in the country,” said Eshetu Fantaye, the first and newly appointed president of the bank.
This milestone move has left Ahadu’s promoters upbeat, which shall see the financial firm become the second bank to edge closer to operation and secure a license from the National Bank of Ethiopia (NBE), following Goh Mortgage Bank.
Ahadu is among the few banks, what bloc industry insiders call “fourth-generation banks”. These are a new wave of banks entering the financial sector after a period of almost a decade that saw the formation of no financial institutions.
In a protected industry that is only allowed to Ethiopians who mostly start a bank with a capital of 500 million birr, Ahadu bank is said to have raised 702 million birr in subscribed capital from 9,600 shareholders, and has a paid up capital of 564 million birr. This
announced capital is not inclusive of share values sold to foreigners of Ethiopian origin who were very recently allowed to buy shares in Ethiopian banks.
Ahadu Bank S.C. is a conventional commercial bank which is established by Ethiopians and foreign nationals of Ethiopian decent. Complying with the country’s business law and National Bank of Ethiopia procedures, and comprising of a team of reputable professionals, veteran bankers and, prominent businessmen, have been gathered to make a foot print on the banking sector with a unique business model.
Starting from February, 2020 the organizing committee of Ahadu received the permit from the National Bank of Ethiopia. Following the permit, it planned to finalize the share sales until September 10, 2020 and proceed with licensing process assuming the state of emergency would be lifted (placed due to the COVID pandemic), however, the under-formation bank continued its share sell until the middle of December.
Ethiopia to host ‘big 5 construct exhibition’
Endorsed by the Ministry of Urban and Infrastructure Ethiopia is set to host the big 5 construct Ethiopia for the first time, as part of the international portfolio of construction exhibitions from May 18 – 20, 2023 at the millennium hall Addis Ababa.
The event comes from the acquisition of the established Addis Build, with a legacy of 10 years of construction exhibition in Ethiopia. The event is expected to bring over 100 international construction products, services and technology companies, alongside key local players who will showcase the opportunities across Ethiopia’s construction sector.
Organized by dmg events and its local partner Ethel Events and Communication, part of The Big 5 global series of events, the three-day exhibition will host local, and international attendees that have intent on taking part in Ethiopia’s growing construction sector.
Over 100 exhibitors from 15 countries including Italy, Turkey, United Arab Emirates and Saudi Arabia and 6,000 local buyers are expected to attend. Buyer profiles include contractors, project managers, engineers, architects, quality surveyors, distributors, and manufacturers.
Addis Build Construction Exhibition is the longest-running building and construction exhibition in Ethiopia and was acquired by dmg events in 2020.
The Big 5 Construct Ethiopia brings together influential decision-makers from the region and beyond at the Millennium Hall in Addis Ababa. The event is officially supported by the Ethiopian Ministry of Urban and Infrastructure.
Four focus pillars announced for new budget year
Agricultural production and productivity, accomplishing ongoing projects, rehabilitation and resettlement of the displaced, and security are the priorities in the new budget year.
Prime Minister Abiy Ahmed who appeared in parliament for the second time in under a month and this time to provide clarification about the past budget year and for the ratification of the 2022/23 budget said that despite several challenges having occurred in the 2021/22 budget year, the performance attained was promising.
He stated that despite security challenges forcing some revenue administrations and businesses to be interrupted, in the first 11 months of the budget year, the government was able to collect 93 percent of the revenue of the target.
He clarified that the target was to collect 330 billion birr in 11 months, while 309 billion birr was attained which is still a 19.4 percent increment compared with the same period of the preceding year.
The PM assured that the government will focus its acceleration on the development which it registered in the past years.
He added that the priorities will have four pillars; agricultural production and productivity, accomplishing ongoing projects, rehabilitation and resettlement of displaced, and expanding the national defense capacity.
Abiy added that 59 percent of the budget will be channeled for poverty reduction.
He added that the budget deficit shall be mainly covered by sources other than direct advance, which is stated as a major source of inflation.
The PM boosted by the success of export earnings from goods and services, explained that USD 10 billion was secured.
Abiy said that the service export contributed USD six billion by expanding 25 percent in comparison to the preceding year.
He appreciated his macro team for the success of the foreign currency earnings.
The reform applied to the financial industry has also boosted the sector activity and the private sector.
He said that the number of branches and savings had expanded significantly, “in the budget year, 353 billion birr has been provided in loans.”
From the total loan disbursement in the budget year, over one third or 34 percent in financing flowed to the agricultural and related sector.
He said that importing substations was crucial to tackling inflation, “25 percent of food items are imported. How can we import mango? We ought to build upon our agricultural experiences for our benefit,” he added.
He strongly stated that the country will commence wheat export by the coming budget year. Every year the country has allocated over a billion dollars to import the grain, while the initiative that was introduced a couple of years ago to produce wheat during the dry season besides the regular harvest time has contributed to reduce the import volume.
Abiy said that the government is undertaking different preparations to expand the sector production up to introducing export.
According to the PM, regarding some mega projects like Gorgora, Koisha, Wonchi and projects in the capital will be accomplished starting from the first quarter of the budget year.
In the 2022/23 budget year, 786.6 billion birr has been ratified; the gap is 231.4 or over 29 percent which will be covered by domestic and external sources. The deficit is 3.4 percent of the GDP which is stated as above the recommended three percent of the GDP.
The major portion, 224.5 billion birr of the budget deficit will be covered by local sources whereas the remaining 6.9 billion birr will be sourced from foreign creditors.
