City Ushers East African Finance Summit

Jun 17 , 2023


The sixth annual East African Finance Summit took place last week, bringing together several players in the financial sector. Vice Governor of the central bank, Solomon Desta heralded Ethiopia's financial sector as being on a positive trend by indicating that the 109 financial institutions in the country had managed to amass 32 trillion Br in assets. He disclosed that independent regulation of the insurance companies is under development. With the impending entry of foreign investment in the local banking sector, Solomon advised commercial banks in attendance to 'get ready for consolidation'. The directives to govern the entrance modality of foreign banks are currently being worked on. Richard Keller, managing director of Genesis Analytics, cautioned Ethiopian private banks to get ready for intense competition from non-banking companies that provide mobile money operations by comparing the case of M-Pesa, which collects more in transaction fees than Kenyan commercial banks combined. He highlighted the underdevelopment of Ethiopia's insurance sector by indicating its meagre 0.3pc contribution to the country's GDP. Keynote speaker Brook Taye (PhD), Director General of the Ethiopian Capital Market Authority (ECMA), said they would be issuing service provider licenses in two months.


Radar

Ethiopia Revives WTO Ambitions After Five-Year Stall

Ethiopia's trade delegation led by Kassahun Gofe (PhD), a chief negotiator in the WTO accession talks, is reviving a long-stalled effort to join the World Trade Organisation (WTO), signalling renewed ambition following a five-year hiatus. He travelled last week to Geneva, Switzerland, where the WTO is headquartered, to conclude negotiations for membership by March next year. If successful, Ethiopia's accession to the world's trade body will be timed, with the 14th ministerial conference set t...


Radar

First Digital Insurance, Loan Services Launched

A new digital insurance and loan service platform christened 'Agar' - translated as a partner - has debuted in the market, marking a notable entry into the financial sector. The initiative, a collaboration among Global Bank Ethiopia, Lucy Insurance, and Kacha Digital Financial Services, pledged to transform access to insurance and credit for various user groups, including insurance policy buyers, taxi drivers, and salaried employees. For Abraham Tilahun, CEO of Kacha Digital Financial Service...


Radar

City Forms Task Force to Regulate Informal Street Vendors

A new task force under the city administration will enforce new regulations designed to restore order on the streets of Addis Abeba and address concerns over cleanliness and public safety. The task force has been established to enforce regulations imposed on informal street vendors. The city's Trade Bureau launched the initiative to address the increasing informal trading, which city officials say has been "disruptive to the established trade system." The task force is headed by Deputy Mayor...