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.


Ministry Ponders Tax Waivers for Rural Energy Solutions

Tax exemptions for off-grid energy technologies like solar pumps and mini-grids are under discussion, spearheaded by the Ministry of Water & Energy. Commonly used by rural households, officials disclose their simultaneous plan to develop 300 mini-grids in the next six years. According to Birhanu Weldu, the lead executive of rural energy technology development, the initiative tackles the country's low electrification rate and reliance on charcoal and firewood. Charcoal, fuel wood, and...


Rural Land Proclamation Comes to Light

A landmark legislation that grants title holders in rural areas the right to use the property as collateral was unanimously ratified by Parliament last week. It primarily focuses on extending access to finance for farmers and pastoralists, through a structured land title system. It also introduces criminal penalties for the illegal transfer of property. Replacing the 18-year-old proclamation for rural land management, the law sentences individuals engaging in land invasions and unauthoris...


Ethiopian Unveils $50m Domestic Terminal Renovation

With a rising demand for domestic travel, Ethiopian Airlines has renovated its terminal at Addis Abeba Bole International Airport with 50 million dollars to handle customers. The expanded terminal has doubled its previous size to 25,750Sqm and accommodates 200 daily flights to and from 22 domestic destinations. It includes four contact gates, 10 remote departure gates, 22 check-in counters with automated baggage screening systems, shops and restaurants. The terminal also features a dedica...