FORTUNE+ VIDEO SPONSORED CONTENTS FORTUNE AUDIO Fortune Careers New TRADE AFRICA New

Fortune Logo

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]

How useful was this post?

Click on a star to rate it!

Average rating 5 / 5. Vote count: 1

No votes so far! Be the first to rate this post.



Related Posts

Put your comments here

N.B: A submit button will appear once you fill out all the required fields.

Editors' Pick

Editorial

Policy Unpredictability Pernicious, When Frequented Dreadful

Dec 24 , 2022

Biniam Mikru heads the department of cabinet affairs under Mayor Adanech Abiebie. But...

Agenda

Is the Coffee Bonanza Here to Stay?

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...

Editorial

Financial Sector-sourced Glucose Drips No Remedy to Save Economy

Nov 27 , 2021

Against my will, I have witnessed the most terrible defeat of reason and the most sa...

Editorial

Contingency Economic Plan Necessary to Reconcile with Political Storm

Nov 13 , 2021

Plans and reality do not always gel. They rarely do in a fast-moving world. Every act...

Commentaries

Confronting the Global Water Crisis

The world's water crisis can no longer be ignored. Unless we manage water properly, w...

Why Ethiopia’s Budding Startups Appeal to Global Capital?

Ethiopia has been overshadowed by its African counterparts, as 92pc of total tech inv...

Fineline

Leaders of the National . . .

Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...

When the country’s most. . .

When the country's most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or two...

Editorial

Confronting the Axis of Threat: Diminished Assets, Inflation, and Trade Imbalance

Mar 18 , 2023

Ethiopia's economy once hailed as a paragon of growth and development, now faces a co...

Is Ethiopia Insolvent? Or Just Illiquid?

Mar 11 , 2023

Ethiopia is rapidly emerging as one of China's top African debtors, second only to An...

Nature May Cause Drought; Famine Results from Political Failure

Mar 4 , 2023

Once again, Ethiopia has claimed international attention in the past few weeks for re...

What Internet Shutdown Posit about Ethiopia’s World Standing?

Feb 25 , 2023

Millions of people in Ethiopia have continued to be deprived of access to information...

Gallery

Parliament Approves New Cabinet Members

Oct 6 , 2021

Parliament Approves New Cabinet, Incorporates Opposition Leaders Lawmakers have approved today the nominations of 22 ministers, including three opposition leaders. Two MPs have voted against, while 12 abstained...

2020 in Posterity

Jan 5 , 2021

TIGRAY VOTES DESPITE "NULL & VOID" THREAT

Sep 9 , 2020

IN-PICTURE: LAUREATE'S RECEPTION  

Dec 14 , 2019

PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize

May 6 , 2019

Faces, Voices of Addis Abeba

Apr 26 , 2019

Sunday With Eden

Healing Societal Wounds through Clemency

I met Solomon Desta a couple of years ago. He lives and works in a religious institu...

Women Thrive Against All Odds

International Women's Day was celebrated on March 8th last week. However, for Ethiopia, it should be another reminder of how far behind the...

Life Matters

A Week without Our Three-wheeled Allies

A comedian made a joke about how citizens' wishes are not granted but rather what government thinks is ou...

A Longevity Quest to Parenting

As an only child, I did not experience life with siblings and I do not remember arguing with my parents. Perhaps when I became a teenager I...