FORTUNE+ VIDEO SPONSORED CONTENTS ADVERTORIALS FORTUNE AUDIO Fortune Careers New TRADE AFRICA New

Fortune Logo

Over a dozen banks hoping to join the industry saw their ambitions screech to a halt last week as they failed to meet a deadline to raise half a billion Birr in paid-up capital. The central bank gave them a six-month window to raise the equity in March this year, but the uphill climb proved too steep. A pandemic, widespread instability, a full-blown civil war, and restrictions on foreign nationals of Ethiopian origin while investing are among the impediments promoters failed to overcome. An extension request submitted to the central bank in the final weeks was rejected, and promoters of banks under formation were left scratching their heads, wondering what to do next.


There are only three options. Raise a whopping five billion Birr in paid-up capital and apply for a banking license, attempt to patch together a merger with others in the same boat, or dissolve. What they decide remains to be seen.


Some have succeeded. Goh, Amhara, Tsehay, Gadaa and Ahadu banks have squeezed through. Rammis Bank is set to enter the industry as the third full-fledged interest-free bank, following in the footsteps of ZamZam and Hijra banks.


Microfinance institutions are looking to join the mix, with no less than six gearing up to transform into commercial banks. Regulators at the central bank and experts expect the army of new entrants to boost competition and foster innovation in the industry—a good sign for a country with nearly two-third of the population remains unbanked.


You can read the full story    here    


PUBLISHED ON Oct 16,2021 [ VOL 22 , NO 1120]

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.



Related Posts

Put your comments here

N.B: A submit button will appear once you fill out all the required fields.

Editors' Pick

Editorial

Policy Unpredictability Pernicious, When Frequented Dreadful

Dec 24 , 2022

Biniam Mikru heads the department of cabinet affairs under Mayor Adanech Abiebie. But...

Agenda

Is the Coffee Bonanza Here to Stay?

Jul 2 , 2022 . By RUTH TAYE

On a rainy afternoon last week, a coffee processing facility in the capital's Akaki-Qality District was abuzz with activ...

Editorial

Financial Sector-sourced Glucose Drips No Remedy to Save Economy

Nov 27 , 2021

Against my will, I have witnessed the most terrible defeat of reason and the most sa...

Editorial

Contingency Economic Plan Necessary to Reconcile with Political Storm

Nov 13 , 2021

Plans and reality do not always gel. They rarely do in a fast-moving world. Every act...

Commentaries

How to Avoid a Debt Crisis in Sub-Saharan Africa

The average debt ratio in sub-Saharan Africa has almost doubled in just a decade - fr...

Bridging Compact Paves the Way for Developing Countries Facing a Financial Abyss

Low-income countries are in the throes of a liquidity crunch that is not only undermi...

Fineline

Leaders of the National . . .

Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...

When the country’s most. . .

When the country's most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or two...

Editorial

Ethiopia's Precarious Promise for Prosperity

Sep 30 , 2023

The recent gathering by the leadership - and the rank and file - of the Prosperity Pa...

Seeking Solvency for a Battered Economy in a Sea of Uncertainty

Sep 23 , 2023

Ethiopia's contemporary political leaders and the policy wonks under their command ha...

Where Fiscal Prudence Meets Unbridled Optimism in a High-Stake Debt Saga

Sep 16 , 2023

The Ethiopian economic narrative oscillates between pockets of resilience and signifi...

Conflict, Contraction, the Yearning for a New Dawn

Sep 10 , 2023

Earlier this Ethiopian fiscal year, the heralding of a peace deal became synonymous w...

Gallery

Parliament Approves New Cabinet Members

Oct 6 , 2021

Parliament Approves New Cabinet, Incorporates Opposition Leaders Lawmakers have approved today the nominations of 22 ministers, including three opposition leaders. Two MPs have voted against, while 12 abstained...

2020 in Posterity

Jan 5 , 2021

TIGRAY VOTES DESPITE "NULL & VOID" THREAT

Sep 9 , 2020

IN-PICTURE: LAUREATE'S RECEPTION  

Dec 14 , 2019

PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize

May 6 , 2019

Faces, Voices of Addis Abeba

Apr 26 , 2019

Sunday With Eden

Unyielding Love in Life's Shadows

In a world where resilience and love are often tried and tested, Salem Getachew's (MD) luminous spirit stands as a testament to the enduring...

Crack in the Dam: Where Healing Begins

I spent most of my last week with the family of my former colleague who passed away recently. Underst...

Life Matters

Blurred Lines of Online Presence

It is fascinating to witness the power of technology in bridging the gap between individuals. However, I can not help but wonder if the surg...

Bait and Switch Strategy

Heading to an unfamiliar destination recently, I ordered service from one of the taxi-hailing companies. I had a chance to discuss several a...

Back
WhatsApp
Telegram
Email