Aug 7 , 2021
Gadaa Bank, one of dozens of banks in line to join the industry, held its first subscribers meeting last week after having raised 600 million Br in paid-up capital. Since it started selling shares at a par value of 1,000 Br in April 2019, Gadaa has recorded over 1.3 billion Br in subscribed capital from over 30,000 shareholders. A potential investor has to buy a minimum of 20 shares to take part in the venture. Charging shareholders a five percent service fee to cover operational expenditure, Gadaa's promoters have already spent upwards of 34 million Br. The meeting at the Skylight Hotel on August 5, 2021, was attended by Shimelis Abdissa, president of Oromia Regional State, and other senior officials. Enterprises and other business entities based in the Regional State hold a large stake in the Bank. The Oromia Public Enterprise Supervision Agency has pledged 100 million Br to buy shares, while it has already paid 25 million Br. The Oromia Construction Corporation has similarly bought 7.5 million Br worth of shares, subscribed for over 20 million Br more. The Oromia Agricultural Cooperative Federation has subscribed to 10 million Br worth of shares. Though promoters were unwilling to disclose when they expect the Bank to go operational, they stated Gadaa would be providing an interest-free banking window and need-based loans as part of its services. The Bank will also be headquartered in Addis Abeba.
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