Gadaa Bank Inches Closer to Launch

Aug 7 , 2021


[ssba-buttons]

Gadaa Bank, one of dozens of banks in line to join the industry, held its first subscribers meeting last week after having raised 600 million Br in paid-up capital. Since it started selling shares at a par value of 1,000 Br in April 2019, Gadaa has recorded over 1.3 billion Br in subscribed capital from over 30,000 shareholders. A potential investor has to buy a minimum of 20 shares to take part in the venture. Charging shareholders a five percent service fee to cover operational expenditure, Gadaa's promoters have already spent upwards of 34 million Br. The meeting at the Skylight Hotel on August 5, 2021, was attended by Shimelis Abdissa, president of Oromia Regional State, and other senior officials. Enterprises and other business entities based in the Regional State hold a large stake in the Bank. The Oromia Public Enterprise Supervision Agency has pledged 100 million Br to buy shares, while it has already paid 25 million Br. The Oromia Construction Corporation has similarly bought 7.5 million Br worth of shares, subscribed for over 20 million Br more. The Oromia Agricultural Cooperative Federation has subscribed to 10 million Br worth of shares. Though promoters were unwilling to disclose when they expect the Bank to go operational, they stated Gadaa would be providing an interest-free banking window and need-based loans as part of its services. The Bank will also be headquartered in Addis Abeba.


Radar

NBE Expands Diaspora Warning Over Unlicensed Remittance Firms

The National Bank of Ethiopia (NBE) has issued an expanded public warning targeting unlicensed remittance operators abroad, flagging four U.S.-based companies it says are undermining Ethiopia's financial regulations. The warning includes newly disclosed findings and specific cases that underscore growing concerns about illicit cross-border financial activity. Remittance flows remain a vital lifeline for Ethiopia's economy, supporting households and supplying critical foreign currency. But as...


Radar

Stricter Standards Unveiled for Public Auditors, Accounting Firms

The Accounting & Auditing Board of Ethiopia (AABE) has issued a new directive aimed at strengthening oversight and professional standards in the accounting and auditing sector. Grounded in the Financial Reporting Proclamation, the directive addresses long-standing regulatory gaps while preparing the sector for the country's emerging capital market. Key provisions introduce stricter licensing standards for public auditors, professionals permitted to audit public interest entities. Applican...


Radar

Export Recovery Gains Ground, Industry Still Lags Potential

The Ministry of Industry (MoI) has reported a modest rebound in Ethiopia's manufacturing exports, with revenues climbing eight percent in the 2025 fiscal year to reach 318 million dollars. Minister Melaku Alebel attributed the growth to a gradual sectoral recovery but acknowledged the figures remain well below the country's industrial potential. Speaking at a forum held with 60 top-performing manufacturers, Melaku said the ministry is working to unlock bottlenecks and improve coordination. Th...