Zemen Bank has announced a significant achievement in its financial operations, successfully mobilizing over $500 million in foreign currency during the last fiscal year. This milestone marks a notable accomplishment for the bank, which has been operational for 16 years and has consistently demonstrated strong performance in the Ethiopian banking sector.

In the 2023/24 fiscal year, Zemen Bank reported that it mobilized a total of $566 million in foreign exchange. Tewahido Tafesse, Chief Strategy and Marketing Officer of Zemen Bank, highlighted this achievement during a recent report on the bank’s operations. He noted that the bank’s capital has reached 12 billion 262 million birr, while its total assets have grown to 59 billion birr. The paid-up capital stands at 7.5 billion birr.

At a forum held last week, Zemen Bank also announced an increase in its legal reserves to 1.7 billion birr. The event recognized more than 200 long-standing customers and partners of the bank, showcasing its commitment to fostering relationships within the business community.

Dereje Zebene, CEO of Zemen Bank, expressed gratitude for the support received from customers and partners, stating, “We are fortunate to be able to work with our customers and partners at a time when the financial sector and services are becoming free.” This sentiment reflects the bank’s dedication to enhancing its services and expanding its reach within Ethiopia’s evolving financial landscape.

Among those recognized at the forum were investors engaged in various sectors including trade and investment, flower farm development, technology, air transport, hotel management, and tourism. These sectors are vital to Ethiopia’s economic growth and development.

Currently, Zemen Bank operates with a network of 127 branches, 293 ATMs, and 801 point-of-sale (POS) machines. The bank’s signed capital has increased to 15 billion birr, with a paid-up capital of 7.5 billion birr and legal reserves of 1.7 billion birr. This robust infrastructure positions Zemen Bank as a key player in providing financial services across Ethiopia.

The successful mobilization of foreign currency is particularly significant given the ongoing challenges faced by many financial institutions in Ethiopia. As the country navigates economic reforms and seeks to stabilize its currency, Zemen Bank’s ability to attract foreign exchange demonstrates its resilience and commitment to supporting both local businesses and the broader economy.

Zemen Bank’s achievement of mobilizing over $500 million in foreign currency underscores its role as a leading financial institution in Ethiopia. With its strong capital base and extensive network, the bank is well-positioned to continue contributing to the country’s economic growth while supporting its customers and partners across various sectors. As Ethiopia’s financial landscape evolves, Zemen Bank remains committed to fostering innovation and resilience within the banking sector.

In a significant development, the inaugural conference of the Ethiopian Family Business Forum (EFBF) has shed light on the critical challenges faced by family businesses in Ethiopia. The conference, held under the theme “Passing the Torch; Sustaining Success in Ethiopian Family Business,” highlighted the importance of these enterprises in the country’s economy and the need for support to ensure their growth and success.

Family businesses in Ethiopia, known as Ethiopian Family Businesses (EFBs), are a significant contributor to the country’s economic growth. However, they face numerous challenges, including weak governance structures, lack of formal succession planning, and inadequate talent management practices.

Solomon Gizaw, the Chairman and CEO of HST Consulting, emphasized that one of the most critical challenges in family businesses is transition planning. This involves preparing leadership and ownership in advance for the seamless transfer of leadership from one generation to the next. He stated, “It is no exaggeration to say that family businesses are the pillars of our economy that foster entrepreneurship, resilience and motivation to innovate.”

The EFBF was established to address the importance of family businesses in the economy and support their growth. In Ethiopia, these enterprises not only contribute significantly to GDP but also play a vital role in job creation and community development. The forum is now formally registered and is currently supported by the customer sector and professional services in HST Consulting.

According to Solomon, the purpose of the EFBF is to serve as a platform for the exchange of knowledge and experience for current and future family business owners. The conference featured a great group of speakers with a wealth of experience and knowledge, engaging in extensive discussions on the main topics of family business management.

The establishment of the EFBF marks a significant step in recognizing the importance of family businesses in Ethiopia’s economy. By providing a platform for knowledge sharing and addressing the challenges faced by these enterprises, the forum aims to help EFBs grow and sustain their success.

As family businesses continue to play a crucial role in Ethiopia’s economic landscape, addressing the challenges of weak governance structures, succession planning, and talent management will be essential for their long-term success. The EFBF’s efforts to support and empower these enterprises are commendable and will undoubtedly contribute to the overall economic development of the country.

In its eighth annual Goalkeepers report, the Bill & Melinda Gates Foundation has urgently called on world leaders to increase global health spending in areas where it is most needed. The report emphasizes the critical importance of boosting children’s health and nutrition, particularly in light of the escalating global climate crisis.

Titled “A Race to Nourish a Warming World,” the report warns that without immediate global action, climate change could condemn an additional 40 million children to stunting and 28 million more to wasting between 2024 and 2050. The foundation argues that scaling up effective solutions now can prevent these dire outcomes while simultaneously building resilience to climate change and fostering essential economic growth.

According to the World Health Organization, an estimated 148 million children currently experience stunting—a condition that impairs physical and mental development—while 45 million suffer from wasting, which leaves them weak and emaciated. These conditions significantly increase the risk of developmental delays and mortality, representing the most severe forms of chronic and acute malnutrition.

Despite these alarming statistics, the report highlights a troubling trend: the total share of foreign aid directed towards Africa has decreased over the past decade. In 2010, African countries received 40% of foreign aid; this figure has now plummeted to just 25%, the lowest percentage in 20 years. This decline is particularly concerning given that more than half of all child deaths occur in sub-Saharan Africa, leaving millions at risk of preventable diseases.

Bill Gates, co-chair of the Bill & Melinda Gates Foundation, expressed his concern about the current global landscape, stating, “Today, the world is contending with more challenges than at any point in my adult life: inflation, debt, new wars. Unfortunately, aid isn’t keeping pace with these needs, particularly in the places that need it most.” He believes that global health can still achieve a resurgence even amidst competing challenges for government budgets.

Gates described malnutrition as “the world’s worst child health crisis,” exacerbated by climate change. He urged for sustained global health funding and immediate action to combat child malnutrition through support for the Child Nutrition Fund—a new platform aimed at coordinating donor financing for nutrition initiatives. He also called on governments to fully fund established institutions like Gavi, the Vaccine Alliance, and the Global Fund to Fight AIDS, Tuberculosis and Malaria.

“If we do these three things,” Gates asserted, “we won’t just usher in a new global health boom and save millions of lives—we’ll also prove that humanity can still rise to meet our greatest challenges.”

The report further outlines the catastrophic economic costs associated with malnutrition. According to the World Bank, undernutrition results in an annual productivity loss of approximately $3 trillion globally. In low-income countries, this loss can account for 3% to 16% (or more) of GDP—equating to a permanent recession at 2008 levels each year.

Gates emphasized that investing in nutrition is crucial for combating climate change’s impacts. “Malnutrition makes every forward step our species wants to take heavier and harder,” he stated. Conversely, solving malnutrition could facilitate progress on various fronts: reducing extreme poverty, enhancing vaccine effectiveness, and decreasing mortality rates from deadly diseases like malaria and pneumonia.

The Gates Foundation’s report serves as a clarion call for immediate action from global leaders to prioritize health spending targeted at combating malnutrition and its associated challenges. By addressing these issues head-on, there is hope not only for saving millions of children’s lives but also for fostering a healthier future for generations to come.