Banking sector set to open to foreign competition in few weeks
For the first time in its history, Ethiopia is poised to open its banking sector to foreign competition, with new legislation currently under parliamentary review and expected to be enacted next month. This landmark decision represents a significant shift in the country’s economic landscape, aimed at enhancing competition, improving service delivery, and attracting foreign investment.
#Capital news
@patternfin
For the first time in its history, Ethiopia is poised to open its banking sector to foreign competition, with new legislation currently under parliamentary review and expected to be enacted next month. This landmark decision represents a significant shift in the country’s economic landscape, aimed at enhancing competition, improving service delivery, and attracting foreign investment.
#Capital news
@patternfin
👍3
A great piece by Aman & Partners on their Legal Update Issue 15
Title: End of Ethiopia's Banking Sector Protectionism in Sight
I highly recommend you to read this two pages but resourceful document prepared by Aman & Partners LLP.
What other points do you suggest to be included which could have an impact on domestic and foreign investors?
Enjoy reading!
Title: End of Ethiopia's Banking Sector Protectionism in Sight
I highly recommend you to read this two pages but resourceful document prepared by Aman & Partners LLP.
What other points do you suggest to be included which could have an impact on domestic and foreign investors?
Enjoy reading!
Weekly updates ⬇️⬇️⬇️
🏗 Real Estate Proclamation: New Buyer Safeguards
Parliament mandates developers to complete 80% of construction before handovers, unless otherwise agreed, and bans misleading ads. (FBC)
What it means for you: Strengthened buyer protections boost trust and transparency in Ethiopia's real estate sector.
🏗 Real Estate Proclamation: New Buyer Safeguards
Parliament mandates developers to complete 80% of construction before handovers, unless otherwise agreed, and bans misleading ads. (FBC)
What it means for you: Strengthened buyer protections boost trust and transparency in Ethiopia's real estate sector.
Weekly updates ⬇️⬇️⬇️
📈 EIH Takes Charge of Key State Enterprises
Ethiopian Investment Holdings now manages 10 additional entities, including Ethiopian Electric Power and Development Bank of Ethiopia. (Shega)
What it means for you: Streamlined administration unlocks investment potential in energy, transport, and industrial parks.
📈 EIH Takes Charge of Key State Enterprises
Ethiopian Investment Holdings now manages 10 additional entities, including Ethiopian Electric Power and Development Bank of Ethiopia. (Shega)
What it means for you: Streamlined administration unlocks investment potential in energy, transport, and industrial parks.
Weekly updates ⬇️⬇️⬇️
💼 Banking Fraud Hits 1.3 Billion Birr
The Central Bank reports major fraud losses last year, mainly due to third-party risks. (Birr Metrics)
What it means for you: Urgent need for fraud prevention technologies and robust risk management in the banking sector.
💼 Banking Fraud Hits 1.3 Billion Birr
The Central Bank reports major fraud losses last year, mainly due to third-party risks. (Birr Metrics)
What it means for you: Urgent need for fraud prevention technologies and robust risk management in the banking sector.
Weekly updates ⬇️⬇️⬇️
💼 i-Capital Africa Earns Advisory License
The Ethiopian Capital Markets Authority licenses i-Capital as the first local investment advisor. (Capital)
What it means for you: A milestone for capital market reforms, creating opportunities for local investors.
💼 i-Capital Africa Earns Advisory License
The Ethiopian Capital Markets Authority licenses i-Capital as the first local investment advisor. (Capital)
What it means for you: A milestone for capital market reforms, creating opportunities for local investors.
Weekly updates ⬇️⬇️⬇️
🏦 $700m World Bank Loan for CBE
Funds will recapitalize CBE and support a 900 billion birr bond issuance for state debt recovery. (The East African)
What it means for you: Improved credit availability and potential state enterprise privatizations.
🛫 Ethiopian Airlines and Air Congo Partnership
Air Congo, a joint venture with a 49% Ethiopian Airlines stake, begins operations. (Birr Metrics)
What it means for you: Enhanced regional connectivity fosters trade and travel opportunities with the DRC.
Don’t forget to follow for more weekly updates!
#Kazana
🏦 $700m World Bank Loan for CBE
Funds will recapitalize CBE and support a 900 billion birr bond issuance for state debt recovery. (The East African)
What it means for you: Improved credit availability and potential state enterprise privatizations.
🛫 Ethiopian Airlines and Air Congo Partnership
Air Congo, a joint venture with a 49% Ethiopian Airlines stake, begins operations. (Birr Metrics)
What it means for you: Enhanced regional connectivity fosters trade and travel opportunities with the DRC.
Don’t forget to follow for more weekly updates!
#Kazana
👍1
የኢትዮጵያ ሰነደ ሙዓለ ንዋዮች ገበያ አ.ማ በኢትዮጵያ የመጀመሪያ የሆነውን የተደራጀ የሰነደ ሙዓለ ንዋዮች ገበያ ለማስጀመር የሚያስችለውን ፈቃድ አገኘ። የኢትዮጵያ ሰነደ ሙዓለ ንዋዮች ገበያ አ.ማ. ይፋዊ የስራ ፈቃድ ከኢትዮጵያ የካፒታል ገበያ ባለስልጣን ማግኘቱን በደስታ ያበስራል።
@patternfin
@patternfin
👍1
Forwarded from CHANNEL 29
በመላው ሀገሪቱ የኃይል መቋረጥ አጋጥሟል ሲል የኢትዮጵያ ኤሌክትሪክ ኃይል አስታወቀ
ዛሬ ማምሻውን በሲስተም አለመረጋጋት በተፈጠረ ችግር የተነሳ በመላው ሀገሪቱ የኃይል መቋረጥ አጋጥሟል ሲል የኢትዮጵያ ኤሌክትሪክ ኃይል አስታውቋል።
ችግሩን በመፍታት የተቋረጠውን ኃይል ወደነበረበት ለመመለስ በኃይል ማመንጫዎች እና በማከፋፈያ ጣቢያዎች ከፍተኛ ርብርብ እየተደረገ ነው ብሏል።
የተፈጠረው ችግር እስኪፈታ ድረስ ደንበኞች በትዕግስት እንዲጠባበቁ ጠይቆ፤ ያሉትን መረጃዎች በፍጥነት የሚያሳውቅ መሆኑንም ገልጿል።
ዛሬ ማምሻውን በሲስተም አለመረጋጋት በተፈጠረ ችግር የተነሳ በመላው ሀገሪቱ የኃይል መቋረጥ አጋጥሟል ሲል የኢትዮጵያ ኤሌክትሪክ ኃይል አስታውቋል።
ችግሩን በመፍታት የተቋረጠውን ኃይል ወደነበረበት ለመመለስ በኃይል ማመንጫዎች እና በማከፋፈያ ጣቢያዎች ከፍተኛ ርብርብ እየተደረገ ነው ብሏል።
የተፈጠረው ችግር እስኪፈታ ድረስ ደንበኞች በትዕግስት እንዲጠባበቁ ጠይቆ፤ ያሉትን መረጃዎች በፍጥነት የሚያሳውቅ መሆኑንም ገልጿል።
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SantimPay Financial Solutions, a prominent player in Ethiopia's emerging fintech scene, reported gross profits of 86 million birr in a year marked by significant product milestones. The payment operator, backed by 15 shareholders, generated revenues of 152 million birr during the 2023/24 fiscal year.
The startup facilitated transactions worth 18 billion birr, with over 99% of this volume stemming from 44 million transactions processed through its online payment gateway. In comparison, around 19,000 transactions, totaling 30 million birr, were conducted via QR codes.
Transactions from POS devices are absent from the startup's annual figures, as SantimPay has relied on partnerships with banks for their deployment.
Board Chairman Daniel Kitaw (Prof.) congratulated shareholders on two years of success and outlined ambitious growth plans. He credited the company's ability to navigate challenges to its commitment to open communication and transparency.
"I look forward to seeing what we can bring in the future," Daniel stated.
With an Earnings Per Share (EPS) of 337.87 birr, SantimPay delivered notable returns to its shareholders. This EPS is on par with the amount paid out by most banks in Ethiopia while standing out due to the limited number of shares—161,080.
Over the past year, the two-year-old payment operator expanded its asset base to 240 million birr while maintaining liabilities of 29 million birr. The company’s paid-up capital now stands at 158 million birr.
The year also marked a strategic collaboration with banks, with SantimPay undertaking a pilot program involving the deployment of 200 POS devices.
Licensed by the National Bank of Ethiopia as a Payment Gateway Operator and Point of Sale (POS) Operator in 2022, SantimPay operates in a competitive space alongside players such as Arifpay, Chapa, and FenanPay.
In a notable development two months ago, the company launched SantimFundMe, a fundraising platform designed to provide a local alternative in the community-based finance mobilization space. The platform aims to compete with international players, further diversifying SantimPay’s offerings.
Via #Shega
#fintech #santimpay #DFS
@patternfin
The startup facilitated transactions worth 18 billion birr, with over 99% of this volume stemming from 44 million transactions processed through its online payment gateway. In comparison, around 19,000 transactions, totaling 30 million birr, were conducted via QR codes.
Transactions from POS devices are absent from the startup's annual figures, as SantimPay has relied on partnerships with banks for their deployment.
Board Chairman Daniel Kitaw (Prof.) congratulated shareholders on two years of success and outlined ambitious growth plans. He credited the company's ability to navigate challenges to its commitment to open communication and transparency.
"I look forward to seeing what we can bring in the future," Daniel stated.
With an Earnings Per Share (EPS) of 337.87 birr, SantimPay delivered notable returns to its shareholders. This EPS is on par with the amount paid out by most banks in Ethiopia while standing out due to the limited number of shares—161,080.
Over the past year, the two-year-old payment operator expanded its asset base to 240 million birr while maintaining liabilities of 29 million birr. The company’s paid-up capital now stands at 158 million birr.
The year also marked a strategic collaboration with banks, with SantimPay undertaking a pilot program involving the deployment of 200 POS devices.
Licensed by the National Bank of Ethiopia as a Payment Gateway Operator and Point of Sale (POS) Operator in 2022, SantimPay operates in a competitive space alongside players such as Arifpay, Chapa, and FenanPay.
In a notable development two months ago, the company launched SantimFundMe, a fundraising platform designed to provide a local alternative in the community-based finance mobilization space. The platform aims to compete with international players, further diversifying SantimPay’s offerings.
Via #Shega
#fintech #santimpay #DFS
@patternfin
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NBE - Statement of Financial Position.pdf
884.2 KB
የኢትዮጵያ ብሔራዊ ባንክ የሃብት እና ዕዳ መግለጫ ሰኔ 23 ቀን 2014 ለተጠናቀቀው በጀት ዓመት (በኢትዮጵያ ብር)
National Bank of Ethiopia Statement of Financial Position As of 30 June 2022 (In Ethiopian Birr)
Via #Pragma
National Bank of Ethiopia Statement of Financial Position As of 30 June 2022 (In Ethiopian Birr)
Via #Pragma
👍2
How to understand Central Banks balance sheets in 5 minutes.
We often hear about QE, QT, money printing, and similar concepts.
To fully understand these, it's important to go back to the basics.
Here is how the balance sheet of a Central Bank (Fed here) works
➡️ Assets
1️⃣ Securities Held Outright
These are the bonds that the Central Bank owns.
In normal times, this amount is relevatively small but if the Fed embarks in quantitative easing operations it can grow very large.
That's why today the Fed owns $7 trillion (!) worth of securities!
2️⃣ Bank Term Funding Program
One of the Fed Loans program, which was created to stop the bleeding during the March 2023 banking turmoil: banks could lend Treasuries to the Fed and receive liquidity at par whatever the price of their bonds was!
These lending facilities are another way to create liquidity for Central Banks
3️⃣ Gold
Central Banks often own foreign denominated assets and Gold
That's because their corporates sell goods or services abroad, and therefore foreign currencies enter the domestic banking system.
Foreign reserves are used to manage and stabilize FX markets if necessary.
Central Banks also buy Gold to diversify their foreign holdings and have a ''hard'' asset which can't be devalued.
➡️ Liabilities
1️⃣ Currency
The private sector's most used form of money are bank deposits - we move money mostly via bank transfers today.
But coins and bills still exist, and these are a liability for the Fed and an asset for the banking sector.
2️⃣ Reverse repurchase agreements
The famous RRP: a special instrument created for money markets so they could deposit money at the Fed. This was created when T-Bills were yielding 0% and the excess money floating around in MMF could bring T-Bills yield into negative (!) territory.
In order to create a release valve for this excess liquidity, the Fed created the RRP.
3️⃣ Treasury General Account (TGA)
This is the account that the US Treasury department holds at the Fed.
Think of it like their checking account: the government can always choose to unlock some of the money in the TGA and spend it in the real economy or vice versa.
Increases or decreases in the TGA are important to monitor because they tell you whether the government is adding or removing resources to the private sector and liquidity for markets.
❗️Reserve balances ( = LIQUIDITY, in red)
This item is the one most often referred to as ''liquidity'': it's the amount of reserves that US commercial banks hold at the Fed.
Source; Alfonso Peccatiello (LinkedIn)
@PatternFin
We often hear about QE, QT, money printing, and similar concepts.
To fully understand these, it's important to go back to the basics.
Here is how the balance sheet of a Central Bank (Fed here) works
➡️ Assets
1️⃣ Securities Held Outright
These are the bonds that the Central Bank owns.
In normal times, this amount is relevatively small but if the Fed embarks in quantitative easing operations it can grow very large.
That's why today the Fed owns $7 trillion (!) worth of securities!
2️⃣ Bank Term Funding Program
One of the Fed Loans program, which was created to stop the bleeding during the March 2023 banking turmoil: banks could lend Treasuries to the Fed and receive liquidity at par whatever the price of their bonds was!
These lending facilities are another way to create liquidity for Central Banks
3️⃣ Gold
Central Banks often own foreign denominated assets and Gold
That's because their corporates sell goods or services abroad, and therefore foreign currencies enter the domestic banking system.
Foreign reserves are used to manage and stabilize FX markets if necessary.
Central Banks also buy Gold to diversify their foreign holdings and have a ''hard'' asset which can't be devalued.
➡️ Liabilities
1️⃣ Currency
The private sector's most used form of money are bank deposits - we move money mostly via bank transfers today.
But coins and bills still exist, and these are a liability for the Fed and an asset for the banking sector.
2️⃣ Reverse repurchase agreements
The famous RRP: a special instrument created for money markets so they could deposit money at the Fed. This was created when T-Bills were yielding 0% and the excess money floating around in MMF could bring T-Bills yield into negative (!) territory.
In order to create a release valve for this excess liquidity, the Fed created the RRP.
3️⃣ Treasury General Account (TGA)
This is the account that the US Treasury department holds at the Fed.
Think of it like their checking account: the government can always choose to unlock some of the money in the TGA and spend it in the real economy or vice versa.
Increases or decreases in the TGA are important to monitor because they tell you whether the government is adding or removing resources to the private sector and liquidity for markets.
❗️Reserve balances ( = LIQUIDITY, in red)
This item is the one most often referred to as ''liquidity'': it's the amount of reserves that US commercial banks hold at the Fed.
Source; Alfonso Peccatiello (LinkedIn)
@PatternFin