Zemzem Surpasses Minimum Paid-up Capital

Oct 12 , 2019

Zemzem Bank, a pioneer in forming a full-fledged interest-free bank (IFB), has finished selling the minimum number of shares set by the National Bank of Ethiopia. As of October 11, 2019, over 1.2 billion Br worth of shares of the under formation Bank were subscribed, while over half were paid up. The Bank has offered shares for public subscription since June. Over a decade ago, the promoters of Zemzem Bank had attempted to form a full-fledged interest-free bank, following the legislation of a law. However, the attempt failed due to the issuance of a directive that limited IFB to window service. When the directive was issued, Zemzem Bank had already managed to raise 137 million Br in paid-up capital from the subscribed amount of 337 million Br from 6,800 shareholders. After the National Bank of Ethiopia (NBE) issued the long-awaited directive on the formation of full-fledged interest-free banking last June, Zemzem reinstated the initiative for the formation of a Bank. A couple more banks, including Zad, Hijira and Nejashi Kush and Huda, have also initiated a process to organise full-fledged interest-free banks. Currently, 10 out of the 17 commercial banks offer interest-free banking products and services.


E-Consultation Portal Launched to Boost Stakeholder Engagement

An e-consultation manual and portal designed to enhance stakeholder engagement in the drafting of laws before their final ratification stage was launched last week. Developed by the Business Environment & Investment Climate (BEIC) project team, the platform operates under the oversight of the Justice and Technology ministries. It aims to improve transparency, efficiency, awareness, and effectiveness throughout the law formulation and enactment process. According to Belayhun Yirga, stat...


Trade Ministry Changes Guard

Prime Minister Abiy Ahmed (PhD) made a series of appointments last week, assigning Kassahun Goffe (PhD) as the new Minister of Trade & Regional Integration. Kassahun, who previously served as the State Minister, succeeds Gebremeskel Chala, who navigated the country through various trade reforms. The appointment comes amidst an export slump, as Ethiopia has faced major economic and political headwinds over the past few years. The Ministry reported a shortfall of 863 million dollars from it...


Ahadu Bank Savours First Taste of Profits

Ahadu Bank registered a 175 million Br gross profits in the ended year, turning around its financial performance. The two-year-old Bank established with 503 million Br in paid-up capital mobilised from 9,600 shareholders has also managed to double the figure to 1.03 billion Br. Ahadu's total assets have also nearly doubled to 6.3 billion Br, while its operating income soared to 1.15 billion Br from financial services for nearly 700,000 customers. It also expanded its branch reach across the c...