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Abyssinia Adopts Payment Gateway to Facilitate E-commerce

Aug 8 , 2020

The two-decade-old Bank of Abyssinia has partnered with Visa CyberSource, a subsidiary of global payments technology powerhouse Visa, to process online payments and provide efficient online fraud management in the country. Abyssinia is the first bank to implement a payment gateway, a transaction transfer software, with Visa CyberSource. This is expected to support e-commerce businesses to process online payments. The new service will help upcoming e-commerce businesses accept payments through credit cards, thereby expanding e-commerce acceptance in Ethiopia. Through this partnership, the Bank expects to tap into the huge potential of the hospitality sector, ride-hailing services, and manufacturing among others. Established with a paid-capital of 17.8 million Br and 131 shareholders, Abyssinia has increased its paid-capital to 2.8 billion Br, generating over 786 million Br in net profit during the 2018/19 fiscal year.

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Electricity Bills Get the VAT Jolt

The new Value Added Tax (VAT) has begun implementation on electricity consumption and various service fees affecting customers who use more than 200 kilowatt hours of electricity per month. Based on a directive from the Ministry of Finance, the tax will be applied to the excess amount of electricity consumption above 200 kilowatt hours. The Ethiopian Electric Utility (EEU) began implementing the VAT on bills starting from November though both prepaid and postpaid customers will have to pay V...

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Gadaa Bank Expands Reach, Faces Lending Constraints

Gadaa Bank closed its first full fiscal year of operations with a net profit of 90.2 million Br. The 18-month-old Bank held its annual general assembly at Millenium Hall on Africa Avenue last week where the board announced that during the year, the Bank opened 15 branches and now has 85 operational branches. “Due to recently enacted policy measures on credit by NBE and unmet resource mobilization during the fiscal year, the Bank was unable to make loan disbursements,” stated Wolde...

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Oromia Bank's Branch Expansion Weighs on Profits

Oromia Bank reported a 47pc decline in net profit to take in 840.9 million Br for the past fiscal year. Interest income grew by 21pc to reach 7.19 billion Br while personnel expense grew by 36pc to hit 3.16 billion Br. The opening of 72 new branches, bringing the total to 575, led to a four percent growth of deposits to 56.4 billion Br. The profits are “unsatisfactory against our ambitious moves,” said Assefa Seme (PhD), board chairperson. “The deviation is primarily attributed to our aggr...

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