Central Bank Increases Micro finance Minimum Paid-Up Capital


Central Bank Increases Micro finance Minimum Paid-Up Capital

The minimum paid-up capital of micro finance institutions is up by six-fold to 75 million Br effective mid-last week. Regulators at the central bank said the amendment was proposed a year to empower depositors. According to Fikadu Digafe, vice governor of the National Bank of Ethiopia (NBE), only 15 micro finance institutions out of 52 obtained licences fulfilling the requirements. Micro finance institutions share subscriptions and submit their business license application to obtain licenses and must present a statement showing they reached a 10 million Br paid-up capital. Institutions are expected to meet the minimum capital threshold until January 2028, while newly established ones will have seven years to comply. However, they should present an action plan to the central bank three months after approval. According to the National Bank of Ethiopia, the micro finance sector mobilises 28.3 billion Br as a deposit, last year. In August 2020, the central bank green lighted micro finance institutions to turn into full-fledged banks. Even though they are elevated to the banking level, they must continue providing micro finance services. Rays and Somali micro finance, Addis, Oromia and Amhara credit & savings are among the institutions added to the commercial banks league in the past two years.

[ssba-buttons]

Radar

Ethiopia Unveils Consortium to Insure Millions of Farmers

Ethiopia has launched its Agricultural Insurance Consortium (AICE), pledging to protect three million farmers by 2026. Announced on July 3, 2025, at the Hyatt Regency, the initiative is backed by Pula Advisors and five major Ethiopian insurers. AICE plans to promote climate resilience through insurance bundled with the government's input voucher system. Leveraging AI platforms like Mavuno and PIE, it plans to standardise products, lower costs, and expand coverage to over 200 woredas. With agricu...


Radar

New Coopbank Partnership Targets Youth Economic Empowerment

The Cooperative Bank of Oromia (Coopbank) has signed a strategic agreement with Melka Ethiopia to provide loan services to over 120,000 young men and women nationwide. The partnership plans to promote youth economic empowerment by expanding access to finance and creating jobs, with a strong focus on rural and underserved areas. Both institutions held joint discussions to explore ways to improve youth livelihoods and financial inclusion. By closing access gaps, the partnership is expected to help...


Radar

Ethiopian Netpreneur Program Training Kicks Off

The Ethiopian Netpreneur 2025 Training Program has officially launched its first cohort in Addis Abeba with 64 entrepreneurs beginning their first round of training. Organised by the Global Digital Talent Academy, the initiative plans to empower local business owners, startup founders, and digital sector players with global-level e-commerce skills. At the launch event, Innovation and Technology Minister Belete Mola (PhD) urged participants to leverage the opportunity to build networks and shape...