Siket Bank Takes a Giant Leap

Aug 21 , 2023


The microfinance institution Addis Credit & Saving Institution S.C. edges closer to joining the banking industry under the moniker Siket Bank. It received a nod from regulators of the central bank last week, making it the seventh microfinance institution to become a full-fledged bank. The microfinance was established 23 years ago with an initial capital of half a million Birr from six shareholders. As it nears graduation into a bank, Siket is boasting a 5.9 billion Br capital, 12.3 billion Br assets and a gross profit of 1.3 billion Br through its 552,000 customer base. Damtew Alemayehu, president of Siket indicated that they have been working on several reforms, including enhancing its capacity through data centre and employee training. "The institution aims to serve those seeking microfinance service as well as banking", he said. The evolvement of the banking industry has reached 32 including the new entrant operating in close to 11,861 branches. The financial institutions including micro finances mobilised 2.2 trillion Br deposits while total loan disbursements grew by 28pc from the previous year to 248 billion Br. While Governor Mamo Mihretu lauded that the figure holds promise, he indicated that the banks' technological capability remains inadequate while there is a significant lag in financial inclusion with only 376,000 people in a country of 120 million having access to loans. Mamo urged banks to strive for growth and resilience as liberalization of the financial sector and entry of foreign financial giants edges closer. "The stakes are higher than ever for the financial institutions," he said.


Radar

DREARY LANES

A street lamp around Addis Abeba Stadium melds into the concrete backdrop emblematic of the capital's ageing infrastructure. Over the past few years, Ethiopia's electric grid has been subject to destruction and theft, subjecting the public treasury to hundreds of millions in losses. Nearly half of the country's population does not have access to electricity. A series of projects by the World Bank has contributed to the slight but essential upgrade to the nation's grid, including a 500 million do...


Radar

PLUMPY HUMPS

A trio of donkeys drag along the main road in front of Menlik School around the Arat Kilo area. While the four-legged domestic animal is a venerated member of the Ethiopian labour force, its skin and meat are increasingly valued in the international markets. Rhong Chang, a donkey slaughterhouse operating in Assela Town, Oromia Regional State reopened its services after a seven-year break two years ago. Public outroar has often accompanied the entrance of donkey abattoirs into Ethiopia since anot...


Radar

IMPROMPTU AISLES

A bustling market emerges under a bridge in the boroughs of the Bole Michael area. Addis Abeba City Administration has launched a series of aesthetic initiatives embalmed in themes of beautification and urbanisation that have removed thousands of shops built with makeshift tents. Above a quarter of Addis Abeba's labour force is engaged in the informal economy, which while often associated with connotations of illegality, remains a sizeable employer in emerging economies across the world. Calibra...


Back
WhatsApp
Telegram
Email