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

Fortune Logo

Apr 3 , 2020

This has affected Zemen Bank more than other commercial banks, for the share of the industry in its loans portfolio higher, according to people close to the industry.

Executives at Zemen Bank took the banking industry by surprise, cutting interest on commercial loans for borrowers in the horticulture industry to zero. The new rate applies to loans and advances taken for the period between April 2, and June 30, 2020.

The horticulture industry has been the hardest hit due to the Novel Coronavirus (COVID-19), which impacted export freeze. It incurred 11 million dollars in losses in the last two weeks of March and faces the prospect of laying off up to 150,000 people.

This has affected Zemen Bank more than other commercial banks, since the share of this industry in its loans portfolio is higher from others, according to people close to the industry. Zemen Bank has 7.8 billion Br in outstanding loans, of which 6.5pc was advanced to companies in the horticulture industry.

See All Our Coronavirus Coverage in One Place


In making the new adjustments, Zemen Bank may use the liquidity boost it received from the central bank last week. The administration of Prime Minister Abiy Ahmed has decided to release 15 billion Br in cash for commercial banks from the account the banks have paid for one year and three months to buy the mandatory 27pc bond that would have been paid back between April 2020 to June 2021.

"We believe this will help the industry to recover and resume operations," Dereje Zebene, president of Zemen, said during a press conference held this morning at the Intercontinental Addis Hotel.


Dereje was accompanied by Zelalem Mesele, president of the Ethiopian Horticulture Producer Exporters' Association.

Zemen's move is a huge support for the industry, which is currently operating with only 10pc to 15pc of its capacity, said Zelalem.


"It'll help the companies to continue paying their employees and buy fertilisers and chemicals to resume operations," he told Fortune.

To lessen the burden on the exporters, the Bank has removed 75pc in commission fee exporters pay to extend the import period. It also committed the 25pc commission fees it collected, amounting to 800,000 Br, to the Ministry of Health to be used for an initiative to protect the safety of the professionals in the front line of the fight against the virus.

Please give us your feedback on our COVID-19 coverage

The Bank also increased its one-time ATM cash withdrawal limit to 12,000 Br and entirely removed transaction fees paid on withdrawals.


The Bank has also contributed a five-million-Birr donation for the national fund that is mobilising financial and non-financial aid for the emergency preparedness of Coronavirus.

This story is edited to add a comment from Zelalem Mesele, president of the Ethiopian Horticulture Producer Exporters' Association and data about the bank's loan portfolio.


PUBLISHED ON Apr 03,2020 [ VOL 21 , NO 1040]

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

[ssba-buttons]

Put your comments here

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

Editors' Pick

Exclusive Interviews

State Enterprises from Oracles to Apprentices

Dec 22 , 2024 . By TIZITA SHEWAFERAW

Charged with transforming colossal state-owned enterprises into modern and competitiv...

Agenda

Rising Costs, Inflation Threaten Insurance Industry

Aug 18 , 2024 . By AKSAH ITALO

Although predictable Yonas Zerihun's job in the ride-hailing service is not immune to...

Agenda

BREWING DISCONTENT

Jul 28 , 2024 . By TIZITA SHEWAFERAW

Unhabitual, perhaps too many, Samuel Gebreyohannes, 38, used to occasionally enjoy a couple of beers at breakfast. However, he recently swit...

Fortune News

Electric Vehicle Push Leaves Investors in the Lurch

Jul 13 , 2024 . By AKSAH ITALO

Investors who rely on tractors, trucks, and field vehicles for commuting, transporting commodities, and f...

Commentaries

Productivity Gains Depend on Bold Firms, Not Broad Reform

Few doubt that productivity growth is good for society. It generally translates into...

War on Malaria Winnable But Africa Needs a Plan to End It

Despite being preventable and curable, malaria has continued to claim African lives....

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

Courting Foreign Buyers of Properties While Land Remains State-Owned

May 31 , 2025

It is seldom flattering to be bracketed with North Korea and Myanmar. Ironically, Eth...

A Country on Life Support Must Not Neglect Its Healers

May 24 , 2025

Public hospitals have fallen eerily quiet lately. Corridors once crowded with patient...

Researchers Churn Out Studies by the Ton. Quality Checks are Causality

May 17 , 2025

Ethiopia pours more than three billion Birr a year into academic research, yet too mu...

Ethiopia's Aid Reckoning Demands a Homegrown Rescue Plan

May 10 , 2025

Federal legislators recently summoned Shiferaw Teklemariam (PhD), head of the Disaste...

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

A Dream Taxed to Death

Six years ago, a dear friend took a leap. He poured his life savings into building a business not for quick profits, but to create something...

The Subtler African Stories Lodged in Luxury

Every family has its ritual, one that bookmarks the year and brings everyone back to center. For ours, it...

Life Matters

The Dangers We Brew

It is unsettling how often news surfaces of everyday household items leading to accidents, some unexpected, others devastating. A recent rep...

Healing the Healers

Reliable information about the recent strike by health professionals in Ethiopia has proven elusive. The public discourse is muddied by sens...