Gadaa Bank Inches Closer to Launch

Aug 7 , 2021


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

Tech Ministry Falters as Audits Expose Mismanagement, Unmet Ambitions

The Ministry of Innovation & Technology is under scrutiny after an audit revealed lapses in project management and financial oversight. This raised questions about governance standards within a Ministry central to the country's tech-driven growth ambitions. According to the Federal Auditor General, the Ministry has completed only 11pc of its planned projects with its overall financial administration standing at 37.4pc for a year-long project that commenced in 2022. Budget mismanagement an...


Radar

Central Bank Keeps Lending Lid Tight as Inflation Squeezes Economy

The Central Bank has reaffirmed its decision to maintain an 18pc cap on credit growth, reinforcing a commitment to tighter monetary policy during persistent inflation and economic uncertainty. The National Bank of Ethiopia's (NBE) monetary policy committee cited ongoing concerns over inflation, which stood at 19.9pc year-on-year (YoY), and liquidity imbalances as reasons to uphold the restriction on lending. Bankers and analysts interpret this move as evidence of regulators' determination to...


Radar

Ethio Telecom Expands Services with DStv Streaming

Ethio telecom enters the entertainment pool with bundled DStv streaming services through high-speed broadband internet and mobile data packages. The partnership with MultiChoice Ethiopia aspires to merge the telecom's fiber broadband and mobile network with DStv's content. Subscribers can access DStv channels through mobile data or fiber broadband bundles, with discounts of up to 35pc through Telebirr or My Ethiotel (*999#) and up to 26.5pc at sales centers for fiber broadband bundles. Acc...