Central Bank Allows Microfinance Institutions to Evolve into Banks

Aug 22 , 2020


The National Bank of Ethiopia (NBE), in a directive issued last week, has allowed microfinance institutions to upgrade into full-fledged banks. The directive lays out the criteria for which microfinance institutions are eligible for this transition. Accordingly, microfinance institutions with a strong financial footing and with regional governments or city administrations as shareholders, which accounts for more than 70pc of the industry, are deemed qualified. It also states that institutions will have a period of two years to finalise their transition into banks. However, a transitioned microfinance institution, while performing the regular services of a bank, must not neglect the main aim of its establishment, according to Yinager Dessie (PhD), governor of the central bank. The institutions must continue to serve and provide loans to the small and medium enterprises and the low-income individuals they were established to serve. Currently, there are 38 microfinance institutions in the country, accounting for 41.6 billion Br in mobilised savings deposits.


Radar

Ethiopian Seafarers Contribute $50m Annually in Remittances

Ethiopian Maritime Authority disclosed 50 million dollars in annual remittances from seafarers deployed internationally. Abdulber Shemsu, the director general of the Authority, said Ethiopia's membership in the International Maritime Organisation (IMO), establishes global standards and guidelines for safe, secure, and environmentally sustainable shipping practices. With 176 member countries and three associate member countries, including Ethiopia, the IMO provides a framework for ensuring...


Radar

AfDB Launches $1.5m Initiative to Propel Agro-Industrial Parks

A 1.5 million dollar initiative for the development of three Agro-industrial parks was commenced last week. Financed by the African Development Bank (AfDB), the project includes feasibility studies, a master plan, and an environmental and social impact assessment. The Phase Two project, which includes capacity building for stakeholders, was initiated last week with an agreement between Semereta Sewasew, state minister for Finance and Gunther Beger, managing director of UNIDO. Semereta said...


Radar

Cabinet Approves Public Service Legislation

Council of Ministers has unanimously approved the legislation that aims to raise the competency and professionalism of public service in the country. The Federal Civil Servants Proclamation is pending ratification from Parliament. The decision was made during the 30th meeting of the Cabinet last week, which follows the ratification of the public service and administrative policy. Currently, the 176 federal agencies within 22 ministries, collectively employ around two million people. The polic...


Back
WhatsApp
Telegram
Email