Siinqee Bank moves one step closer to joining the banking industry with the appointment of Neway Megerssa as its founding president. Regulators at the central bank approved the nomination last week.

Neway, 41, served as Siinqee's board chairperson for a year before his latest placement was given the go-ahead. Formerly known as Oromia Credit & Saving S.C., Siinqee began its transition into a commercial bank last May following a recent rule by the National Bank of Ethiopia (NBE) allowing microfinance institutions (MFIs) to evolve into full-fledged banks. Half a dozen of them have taken advantage, applying for banking permits from the NBE. Their ranks include the largest microfinance institutions in the country, such as the Amhara, Omo, Somali and Addis microfinance firms.

The central bank requires bank presidents to have at least 12 years of experience in banking, five of which have to be in credit and executive roles. For relicensed banks, the NBE accepts experience with microfinance institutions as a ground for eligibility.

Neway spent 13 years in the banking industry, including eight years in a senior executive position with Oromia Bank. He completed an undergraduate programme in economics at Meqelle University before attending two postgraduate studies in development economics and business leadership from St. Mary's University and Addis Abeba University. He started banking at Nib International Bank, where he served until 2010 as a senior research officer and later as the head of the Bank's export division.

He then joined Oromia International Bank as director of strategic management and business development.

Neway left the industry in 2018, moving on to serve as general manager of Kegna Beverages. Incorporated in 2017 with 1.5 billion Br in subscribed capital from 5,000 shareholders, Kegna is setting up a plant in Ginchi town, Oromia Regional State, 80Km west of Addis Abeba. The company plans to produce alcoholic and non-alcoholic beverages, carbonated water and fruit juice for local and international markets.

Tolesa Gedefa, a vice-chairperson of Siinqee Bank, says it was challenging to find a president that meets the requirements set by the central bank. Directors of the bank had initially nominated Zewdie Tefera, general manager of Oromia Credit & Saving, for the job. However, the central bank declined the nomination.

“We also shortlisted other candidates,” said Tolesa. “None of them turned out to be a good fit for the Bank.”

The difficulties prompted the nine-member board of directors to look inward for a suitable candidate.

“We're familiar with his credentials," said Tolesa. "The board decided to consider Neway as a candidate.”

Tolesa serves as head of the finance bureau under the Oromia Regional State. He will serve as a board chairperson at Siinqee, replacing Neway.

Chala Lemma, marketing director at the state-owned Commercial Bank of Ethiopia (CBE), worked with Neway at Oromia Bank for six years. He sees Neway as a leader who delegates responsibility to others and demands results.