
Commentaries | Aug 13,2022
Central bank governor Yinager Dessie (PhD) (centre) shares a lighthearted moment with the founding management team of Ahadu Bank S.C., the latest addition to the banking industry. Mekonnen Semu (left), vice board chairperson; Eshetu Fantaye (second from left), president; Anteneh Sebsebie (second from right), board chairperson; and Tigabu Haileyesus, board director, appeared to be in a good disposition coming out on the other end of a two-year journey since promoters began raising equity from the public.
Ahadu Bank joined the industry with three branches, distinguished for their deep black-and-red layouts, with a plan to open 47 more by October. It has a subscribed capital of 702 million Br, with 80pc paid from around 10,000 shareholders. It plans to reach the five billion Birr minimum paid-up capital threshold in three years, as required by the National Bank of Ethiopia (NBE). The journey to opening its doors to the public has not been without challenges. COVID-19 and political instability have made mobilising equity demanding, according to Board Chairperson Anteneh. The future promises significant challenges to Ahadu, a Ge'ez word for "one". With a slowing economy and inflation pushing real savings rates into the negative, mobilising deposits is a task of the highest order.
A major obstacle will be the shortage of finance professionals as the number of banks grows. Poaching has become standard practice, particularly to fill up senior positions. The competition for limited talent is pushing up salaries and benefits as banks attempt to one-up each other. Given the heavy reliance on physical offices for savings mobilisation, charming the skilled workforce will keep Ahadu's founding management team's nose to the grindstone.
You can read the full story here
PUBLISHED ON
Jul 17,2022 [ VOL
23 , NO
1159]
Commentaries | Aug 13,2022
Editorial | Mar 18,2023
Commentaries | Aug 21,2021
Radar | Apr 24,2023
Fortune News | Jul 09,2022
Radar | May 20,2023
Radar | Mar 27,2021
Fortune News | Sep 18,2021
Radar | Jul 17,2022
Agenda | Jul 17,2022
Dec 24 , 2022
Biniam Mikru heads the department of cabinet affairs under Mayor Adanech Abiebie. But...
Jul 2 , 2022 . By RUTH TAYE
On a rainy afternoon last week, a coffee processing facility in the capital's Akaki-Qality District was abuzz with activ...
Nov 27 , 2021
Against my will, I have witnessed the most terrible defeat of reason and the most sa...
Nov 13 , 2021
Plans and reality do not always gel. They rarely do in a fast-moving world. Every act...
Sep 30 , 2023
The recent gathering by the leadership - and the rank and file - of the Prosperity Pa...
Sep 23 , 2023
Ethiopia's contemporary political leaders and the policy wonks under their command ha...
Sep 16 , 2023
The Ethiopian economic narrative oscillates between pockets of resilience and signifi...
Sep 10 , 2023
Earlier this Ethiopian fiscal year, the heralding of a peace deal became synonymous w...