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Dashen has created banking history in Ethiopia. It was the first to implement the CORE system in 2003, a payment card service in 2006 and the Visa, Mastercard and Unionpay credit cards, and continues to be at the cutting edge of technological development. Berhanu W/Selassie, the bank’s recently appointed president, is implementing a strategic plan that will see the bank expand and develop. “The National Bank of Ethiopia is providing us with the support and regulatory measures needed to create a growth environment,” he says. “Our intention is to expand more and cover the rural areas. We have taken great measures to expand our outreach areas and are opening an average of 20 banks a year. “We want to transform our services. We are going to implement highly advanced technology to support new products and services and work on mobilising our resources. We have an international banking department that is focused on the import-export business; we facilitate trade for different companies and maintain correspondent accounts with the world’s major banks. The banking system in this country is far behind the rest of the world; I believe we could learn a lot from London’s banks and financial system.” Things are moving fast within the sector. Since it was created three years ago, Abay Bank S.C. has become one of the most highly capitalised banks in the nation by partnering with the private sector and putting the journey to development at the core of its activities. Dynamic, customer-driven and innovative, Abay is booming. “We are profitable because we have supported so many people with loans and technical support,” says the bank’s president Mesenbet Shenkute. “These people create job opportunities, which means more customers for us. When we started, we had 845 shareholders; today we have more than 2,000. The farmers are our biggest shareholders. Most of the population is between 20 and 30 years old, and they have creative ideas: we are one institution that will help them move forward.” The Cooperative Bank of Oromia (CBO), arguably the most agriculturally oriented private bank in the country, is also helping farmers to grow, creating better access to funds for what it terms “Ethiopia’s missing middle.” Playing a crucial role in the socioeconomic transformation of Oromia, Ethiopia’s largest state in terms of both population and area and a prime coffee producer, CBO has created access to banking for farmers and cooperatives. “Most of our branches are in the rural areas; out of 67, only nine are in Addis,” says the bank’s president Wondimagegnehu Negera. “The development of technology and telecommunications has allowed us to reach people that were previously left behind. Most of our clients are cooperatives; we have more than 3,000 primary co-ops and unions. As well as bank accounts and services, we provide them with a consultancy service to help in areas of marketing, governance, management, operations and related facilities.
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“We have collaborated with the Bill Gates Foundation, and help clients get organised with training for leadership and capacity building. Those who pass those processes get help with financing and are able to export to the world market. We have a clear strategy and an excellent team. The number of account holders doubled last year and continues to grow.” The leading commercial bank in Ethiopia, Nib International Bank aims to become a pinnacle of excellence in the country. Already the strongest private bank, with a net profit of 246.4 million Birr (£8.7 million), the bank has made a huge impact on the financial services landscape since it was established in 1999 and plays a leading role in all major economic sectors to enhance the country’s development.
Our main objective is to avail abundant supplies of cement to the market. Haile Assegide, Executive Director of Major Investment Projects, Derba Cement
“We need to effectively implement our second five-year strategic plan and motivate our employees to render efficient banking services,” says Amerga Kassa, the bank’s former president. “We need to expand our branch network and open new branches in the areas where development projects are being envisaged, such as sugar factories, railways and new road routes and towns. We also believe in giving back a portion of our profits to society—we contribute to the Children’s Heart Fund of Ethiopia, the Addis Ababa Pensioners’ Association and the Eye Bank of Ethiopia.” Meanwhile, with more than 11,200 shareholders and a profit-increase of 54.7% in 2011/12, Bunna International Bank S.C. is thriving after just three years in the business. Eshetu Fantaye, the bank’s president says: “Banks are tremendously important in fulfilling the government’s GTP, mostly in assisting the growth of domestic selling, which is still very low compared to that of other sub-Saharan countries. “The banking sector needs to reinforce that and increase the sales power at home. Secondly, banks play a crucial role in financing production sectors, especially agriculture and SMEs. Helping out manufacturing sectors is of great importance to a bank’s activities. “We have entered the market with unique products, both on the assets and the liabilities sides of our balance sheet. We intend to expand aggressively with up to 35 branches this year and become the most accessible bank in the country.”
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Derba Cement Nani Building, Kirkos Sub City – Addis Ababa, Ethiopia | Tel: +251 11 554 9888 | Fax: +251 11 554 9816 | info@dmc.com.et | www.dmc.com.et