Ahadu Bank Taps Veteran Banker During Capital Countdown

Aug 2 , 2025. By NAHOM AYELE ( FORTUNE STAFF WRITER )

Regulators at the National Bank of Ethiopia (NBE) have confirmed the appointment of Mulugeta Beza as Ahadu Bank’s third president in as many years. The appointment marks a crucial leadership transition as the financial institution races against time to meet NBE’s looming capital directive.

Regulatory approval for Mulugeta’s appointment was granted on July 7, 2025, one year ahead of the NBE's deadline for all commercial banks to increase their paid-up capital to five billion Birr. With Ahadu Bank’s capital standing below two billion Birr, the pressure to mobilise resources and secure investor confidence has never been more acute.

Mulugeta, 45, steps into the role amid rapid institutional expansion and intense scrutiny. Born and raised in Addis Abeba, his two-decade banking career began at Wegagen Bank in 2003, before advancing through the ranks at Bank of Abyssinia (BoA) over 14 years. He later served as chief business officer at Buna International Bank (BIB).

Mulugeta holds dual undergraduate degrees in accounting and finance, and information systems from Addis Abeba University, and an MBA from the International Leadership Institute.

“Our vision is to create meaningful change for individuals, businesses, and the broader community,” Mulugeta said in his first remarks following his confirmation. “We aim to ensure our impact resonates at every level.”

Ahadu Bank’s Board Chairman, Anteneh Sebsebie, praised the incoming president for his operational acumen and “unwavering integrity.” According to Anteneh, the leadership change signals a renewed push for strategic clarity, operational efficiency, and sustainable growth.

"The President is expected to foster a culture grounded in integrity, innovation, and accountability," Anteneh said.

Incorporated in July 2022 with over 10,000 shareholders and 1.2 billion Br in paid-up capital, Ahadu Bank has grown at a brisk pace. As of the end of the 2024/25 fiscal year, the Bank reported total assets of 10 billion Br, deposits nearing 7.8 billion Br (a 68pc year-on-year surge), and gross profit before provisions and taxes of 569 million Br, up 278.1pc from the previous year.

It also generated 88 million dollars in foreign exchange and increased its customer base to over 1.1 million accounts.

These results were unveiled during a performance review held on July 28 at the Haile Grand Hotel on Asmera Road, where executives touted rising public trust and an expanding footprint.

"These achievements reflect the growing confidence customers have placed in us," reads a statement the Bank issued.

However, the upbeat metrics belie underlying challenges, particularly the structural constraints of scaling a fourth-generation bank within the tightening regulatory regime.

Leadership turnover has been a hallmark of Ahadu Bank’s short history. Founding President Eshetu Fantaye served 17 months before being succeeded by Sefialem Liben in April 2023. Sefialem’s 21-month term ended earlier this year, with Sisay Gebru, chief corporate services officer, serving in an interim capacity until Mulugeta’s confirmation.

For London-based financial analyst Abdulmenan Mohammed (PhD), the appointment is both timely and telling.

“The new President is stepping into a difficult and demanding role,” he said. “Despite encouraging growth, the Bank is undercapitalised and faces a challenging regulatory environment.”

The NBE’s revised capital directive, requiring all commercial banks to meet a five billion Birr threshold by July 2026, places younger financial institutions like Ahadu Bank in a precarious position. Without a substantial injection of capital or retained earnings, the Bank risks regulatory pressure for a merger or acquisition.

Abdulmenan warns that shareholder mobilisation and strategic partnerships will be essential.

“Meeting the capital requirement should be the priority,” he said, urging Mulugeta to diagnose internal inefficiencies and cultivate stronger relationships with high-value clients. “Relying on legacy banking models is no longer viable. The Bank needs technology-led innovation, agile product strategies, and a sharp focus on revenue diversification.”

He also stated the importance of increasing foreign exchange inflows in a macroeconomic environment starved of hard currency, pointing to Ahadu Bank’s recent forex earnings as a foundation to build upon.

PUBLISHED ON Aug 02,2025 [ VOL 26 , NO 1318]