The Ethiopian Deposit Insurance Fund (EDIF), established under Council of Ministers Regulation No. 482/2013, has reported exceptional performance for the first quarter of the fiscal year by collecting Birr 2.08 billion in premiums. This collection marks a full achievement of its forecasted target and represents a 26.83% increase compared to the same period last year.
The growth in premium collection is attributed to the increased deposits held by member financial institutions, including commercial banks and microfinance entities. EDIF’s primary role is to provide insurance coverage for depositors by guaranteeing the return of deposits up to Birr 100,000 per account, thereby contributing to the overall stability and health of Ethiopia’s financial system.
To date, the fund has amassed total premiums amounting to Birr 15.93 billion from member institutions. Of this total, private banks contributed Birr 7.97 billion, the Commercial Bank of Ethiopia provided Birr 7.74 billion, and microfinance institutions added Birr 186.62 million. For the fiscal year 2025/26, EDIF aims to collect a total of Birr 9.56 billion in premiums, reinforcing its financial capacity by reinvesting these funds.
During the first quarter, the fund strategically invested Birr 1.82 billion in government treasury bonds and deposited Birr 190 million in the Mudarabah Savings Investment Account. The overall investment portfolio now stands at Birr 16.49 billion, with the bulk comprised of government treasury documents. EDIF’s investment activities have yielded Birr 1.85 billion so far, with expectations to generate Birr 3.02 billion in income during the current fiscal year.
In the previous financial year alone, EDIF raised over Birr 7.1 billion from its 86 member institutions—a notable 17% growth—and approximately Birr 14 billion over the past two years.
According to a high-ranking official from the National Bank of Ethiopia and chairperson of EDIF, deposits held within banks and microfinance institutions surged to Birr 3.25 trillion, reflecting a 34.3% growth compared to the prior year. Despite the fund’s considerable achievements in accumulation, experts underline the necessity of further bolstering resources to enhance protection, particularly for small depositors.
EDIF continues to focus on strengthening its institutional and operational frameworks through capacity-building policies. Although the current deposit insurance limit of Birr 100,000 covers approximately 97% of deposit accounts, management asserts that this threshold should be reviewed periodically to align with global best practices.
The fund’s proactive measures demonstrate a sustained commitment to safeguarding depositor confidence and ensuring the safety, resilience, and soundness of Ethiopia’s financial sector.
