The 18th insurance firm, Zemen, is in the last stage of joining the insurance industry, only waiting for final approval from the National Bank of Ethiopia.

Zemen has finalised the formation process by 926 shareholders, who raised 81.5 million Br in paid-up capital from the subscribed capital of 114.6 million Br.

Initiated by five promoters from banking, accounting and the insurance industries, Zemen finalised selling shares last July and is currently waiting for the final approvals from the central bank to commence operations. Zemen started selling shares in December 2017 with the target of reaching 100 million Br in paid-up capital and 180 million Br in subscribed capital.

Zemen's share has a par value of 5,000 Br, and the minimum subscription allowed by the founding shareholders was 10. Tulu Tokuma Trade & Transport S.C subsrcibed the highest shares of 980 worth 4.9 million Br making it the largest shareholder.

The initiation to form the insurance firm came up following repeated requests by shareholders of Zemen Bank during general assemblies, according to Amare Habe, former board chairperson of Zemen.

"Then five promoters from the shareholders took the initiative to start the process of forming the firm," Amare, who currently chairs the promoters board, told Fortune.

While most of the shareholders of Zemen Bank bought shares in the firm, Zemen Bank itself is not on the founding shareholders' list.

The Bank's investment policy limits the Bank from investing in companies under formation, according to Abebe Dinku (Prof), the current board chairperson of Zemen Bank.

"Our investment policy has clearly outlined that the Bank can invest in companies that are three years old and above," Abebe told Fortune. "The Bank will asses their profitability before investing."

Abebe also says that even though shareholders have requested the formation of the firm during general assemblies, the topic has never been included in the agenda of the general meetings, which made it very difficult to table for approval.