The microfinance industry is set to welcome a new addition following the announcement that Elsabi Microfinance Institution is under formation after raising 26 million Br in equity from shareholders. Among the major shareholders is Elauto Engineering & Trading Plc, a vehicle assembler incorporated four years ago. The company has been involved in the import and assembly of taxis, in partnership with dozens of taxi associations. It owns a little less than half of the shares in Elsabi. Elnet Technology Plc owns a 15pc stake in the microfinance institution (MFI). There are 41 microfinance institutions operating in Ethiopia, with an outstanding credit of 64.9 billion Br. Several of the largest in the industry, including the Oromia, Amhara and Omo MFIs, are in the process of transitioning into full-fledged commercial banks.
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