State-owned Bank Partners with Private Financial Tech for Digital Lending

Jul 8 , 2023


In a bid to address Micro, Small and Medium Enterprises (MSMEs), a pioneering firm in financial technologies, Chapa Financial Technologies is vying to partner with the Commercial Bank of Ethiopia (CBE) to provide non-collateral loans through a digital lending platform. The company also partnered with Telegram a couple of months ago to facilitate digital payments for online marketers. It comes a month after the central bank joined hands with financial technologies to design and execute a regulatory framework for moveable collateral and non-collateral loans. Nael Hailemariam, CEO of Chapa, indicated the absence of digital and credit infrastructure and limited data as the primary reason for financial institutions' reluctance to finance enterprises. "The company hopes to bridge the gap through the partnership," he said. More than 60pc of Enterprises did not have access to finance in the past few decades through stiffer credit terms in the form of higher interest rates, according to Nael. Last week, the Addis Chamber of Commerce & Sectoral Association (ACCSA), prepared a discussion forum, at Interluxury Hotel, for business owners and financial technologies to discuss the trends and impacts of digital solutions for businesses in Ethiopia. Zerkarias Assefa, director general of ACCSA, who moderated the discussion, said that businesses have fallen short of being data-driven entities, indicating that persistence, execution, and the drive to employ digital business models moving at a slow pace. Nael, on the other hand, highlighted the importance of digital literacy, and making technologies user interface to reach out to businesses. Some participants cited the necessity of strong IT infrastructure, regulatory measures, and adequate end-to-end encryption in platforms. Digitally transacted economic activities in the country accounted for 10 billion Br in 2022, compassing 10pc of the country's GDP. In 2025, the number is estimated to grow by 39pc accounting for 60 billion transactions.


Radar

Mobile Apps Streamline Container Handling

A Chinese private logistics company availed its multilingual mobile applications designed to streamline container handling processes for local businesses. Dubbed arl-shipping.com, the apps are available in Amharic, Oromo, Somali, and Tigrigna, with a competitive monthly fee. Company managements aim to tackle inefficiencies by scanning truck license plates, container IDs, and other details, reducing manual data entry and the potential for errors. Users can also record gate movements with times...


Radar

Private Investment Takes Flight in Aviation Industry

Local private operators received the green light last week to expand their services beyond charter flights, offering regular passenger and cargo options. This move by the Ethiopian Civil Aviation Authority is expected to boost the air transport sector, attracting private companies to invest in air travel services. The Authority is partnering with private investors to improve air transport infrastructure by building over 21 new airstrips and helipads in previously underserved areas. Officials...


Radar

Safaricom Ramps Up Network Expansion with Locally Made Poles

Safaricom Ethiopia has initiated a three-month procurement process to acquire a total of 68 poles from Woda Metal, the first telecom pole manufacturer in the country. The initial batch of 13 poles was delivered last week, marking a milestone as the first use of domestically produced poles in Ethiopia's telecom sector. Wim Vanhellputte, CEO of Safaricom Ethiopia, praised the high quality and affordability of Woda Metal's poles, which will be crucial for their network expansion goals. The co...


Back
WhatsApp
Telegram
Email