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Central Bank Lending Cap Removal Drives 97% Revenue Surge for Hijra Bank

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Hijra Bank, which entered Ethiopia’s financial landscape nearly five years ago as a fully interest-free banking institution, has attributed its remarkable success in the 2025/2026 fiscal year to the National Bank of Ethiopia’s (NBE) decision to lift its restrictive lending cap.

According to executive leadership, the bank shattered previous records across all Key Performance Indicators (KPIs), registering robust growth between 100% and 200% across critical operational segments.

Management underscored that the primary catalyst for this year’s historic performance was the dismantling of the central bank’s credit ceiling. The regulatory constraint had previously disproportionately impacted value-oriented, interest-free banking models.

The policy shift, which accelerated Hijra Bank’s growth trajectory, addressed structural challenges that have long stifled the full potential of interest-free financial institutions in the country.
Originally introduced by the NBE to curb inflation and manage credit expansion, the credit cap restricted the volume of financing banks could deploy relative to their deposit mobilization. While aimed at stabilizing macroeconomic inflationary pressures, the macroprudential tool inadvertently penalized the interest-free sector.

Unlike conventional banks, which optimize excess liquidity by investing in interest-bearing government securities, treasury bills, and interbank placements, Sharia-compliant institutions are strictly prohibited by Islamic principles from participating in interest-based assets.

In an interview with Capital, Abdusalam Kemal, Chairperson of the Board of Directors of Hijra Bank, emphasized that because fully interest-free Islamic banks operate under stringent Sharia guidelines, they cannot extend interest-bearing credit or hold standard sovereign bonds.

Furthermore, the absence of a national framework for Sukuk severely limited the bank’s alternative investment channels under the credit cap. “We do not offer traditional cash loans; our operational model is entirely built on asset-backed financing,” Abdusalam explained.

This structural rigidity meant that while conventional institutions mitigated the credit cap’s impact through alternative interest-yielding instruments, interest-free banks faced severe operational constraints in mobilizing liquidity and supporting their clientele.

The credit growth limit—which was initially capped at 14% before being adjusted to 24%—stifled the bank’s capacity to effectively deploy deposits, expand financing to Small and Medium Enterprises (SMEs), and fund the digital and branch network expansions vital for financial inclusion.

Recognizing these systemic bottlenecks, Hijra Bank’s executive leadership engaged in extensive, high-level consultations with the Governor, Vice Governors, and regulatory departments of the NBE over recent months.

The Board Chairperson noted that by benchmarking global best practices and demonstrating how the credit limit constrained liquidity velocity within the interest-free ecosystem, Hijra Bank successfully advocated for a complete exemption from the cap for fully interest-free institutions.
This regulatory relief revitalized the bank’s financing capacity, directly driving its historic fiscal performance.

Following this strategic regulatory adjustment, Hijra Bank recorded an annual revenue of 3.55 billion Birr, representing a phenomenal 97% year-on-year growth. Notably, the revenue generated in this single fiscal year surpassed the bank’s cumulative gross revenue over the preceding four years combined (2.965 billion Birr).

The bank’s gross profit before tax surged to 1.9 billion Birr, while total assets expanded by 115% within the 12-month period, climbing from 14.61 billion Birr to 31.45 billion Birr. Similarly, customer deposits registered a 101% upswing, rising from 11.94 billion Birr to 24 billion Birr.

ESX Welcomes Prime Capital as 8th Trading Member

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The Ethiopian Securities Exchange (ESX) has reached a new milestone in enhancing the country’s capital market infrastructure. In a ceremony held on the exchange’s trading floor, Prime Capital Investment Bank was officially inducted as the eighth licensed trading member. The addition of this new member expands the market’s ecosystem and strengthens the infrastructure necessary to connect investors with diverse capital opportunities.

The induction ceremony followed Prime Capital’s acquisition of its operational license from the Ethiopian Capital Market Authority (ECMA). By meeting the stringent requirements set by both the regulator and the exchange, the institution has demonstrated its readiness to actively participate in Ethiopia’s organized securities market.

These entities play a fundamental role in bridging the gap between issuers and investors, thereby mobilizing the long-term capital essential for Ethiopia’s industrial expansion, infrastructure development, and sustainable economic growth.

Habib Mohammed, CEO of Prime Capital Investment Bank, described this development as a significant breakthrough for both his institution and the Ethiopian economy. During the event, he stated, “We are proud to become a trading member of the Ethiopian Securities Exchange and to contribute to the process of building a modern, transparent, and inclusive capital market.” The bank is prepared to provide comprehensive services, including brokerage services to facilitate the purchase and sale of securities in both primary and secondary markets; capital raising to support private companies and state-owned enterprises in securing necessary equity and debt financing; and strategic advisory services to provide domestic firms with international-standard research, investment banking, as well as merger and acquisition (M&A) support.

Tilahun Esmael, CEO of the Ethiopian Securities Exchange, welcomed the new member, noting that Prime Capital’s arrival signifies more than just an increase in membership numbers. “This shows that the Ethiopian capital market is growing steadily and that the number of institutions committed to accelerating this growth is increasing,” he remarked.

He further emphasized that a strong, transparent, and credible capital market is a fundamental pillar for a modern and competitive economy.

For its part, Prime Capital noted that it has made significant investments in modern technological infrastructure and regulatory compliance systems. The bank’s leadership highlighted that as Ethiopia adopts international financial standards, domestic enterprises must rely on professional and well-regulated intermediaries to navigate the complexities of the market.

A 105-Year Journey of Struggle: The Code of China’s Development and a New Chapter in China-Africa Cooperation

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On July 1st, the Communist Party of China (CPC) marked the 105th anniversary of its founding. For the Chinese people, it is an important occasion to reflect on the nation’s journey of struggle and achievement while looking ahead to the bright prospects. For our African friends who are interested in China’s development, it also offers an important opportunity to gain a deeper understanding of the key to China’s development.

Over the past 105 years, the CPC has grown from a small group of just over 50 members into the world's largest governing party with a membership of more than 100 million and tremendous global influence. Under its leadership, the Chinese people founded the People's Republic of China, a state where the people run the country, and achieved a historic transformation in living standards—from basic subsistence to moderate prosperity, and then to moderate prosperity in all respects. The Party has also led the Chinese people through an industrialization process that took only a few decades to accomplish what developed countries achieved over centuries, creating the twin miracles of rapid economic growth and long-term social stability.

Chinese President Xi Jinping pointed out that the fundamental reason why the CPC has been able to continuously forge glories over 105 years of struggle, and why history and the people have chosen the Party, lies in its unparalleled fine qualities.
These fine qualities are reflected primarily in six aspects:
First, the Party remains steadfast in pursuing truth and always steers the right course. It has consistently integrated the basic tenets of Marxism with China's specific realities and with its fine traditional culture, while continuously adapting its theories to guide new practices.
Second, the Party is deeply rooted in the people and always rests on a solid foundation. It is dedicated to serving the public good and exercising governance for the people, and remains committed to its fundamental purpose of serving the people wholeheartedly.

Third, the Party bravely shoulders its historic mission and always holds the strategic initiative. It combines long-term objectives with phased goals and defines its central tasks in light of the evolving principal contradiction facing Chinese society.
Fourth, the Party keeps pace with the trend of development and always stands at the forefront of the times. It always proactively identifies, responds to, and steers changes, advancing with the course of history and growing with the progress of the times.

Fifth, the Party dares to struggle and excels in it, and always maintains full confidence in victory. It remains confident of ultimate success and never wavers or retreats in pursuing the interests of the people, the country and the nation, or in upholding its ideals and convictions.
Sixth, the Party focuses on self-strengthening and always brims with vigor and vitality. It gives high priority to self-improvement and self-governance, continuously reinforcing its capacity and resilience through self-reform.

These fine qualities hold the key to the CPC's enduring success. They also constitute an important source of China's development achievements and offer valuable insights into the country's continued progress.

The CPC is committed not only to pursuing happiness for the Chinese people and rejuvenation for the Chinese nation. It is also dedicated to human progress and world harmony. The Party has always stood on the right side of history and on the side of human civilization and progress. Chinese modernization has opened up a new path to modernization and created a new form of human advancement, offering developing countries broader options for pursuing modernization suited to their own national conditions.
China has actively promoted the building of a community with a shared future for mankind and put forward the Global Development Initiative, the Global Security Initiative, Global Civilization Initiative, and the Global governance Initiative, contributing Chinese wisdom, Chinese solutions and Chinese strength to addressing common challenges facing humanity, while bringing greater stability and positive energy to a world undergoing profound transformation and turbulence.

China-Africa friendship and cooperation stand as a vivid testament to this vision. The year 2026 marks the 70th anniversary of the establishment of diplomatic relations between China and African countries, and has also been designated the China-Africa Year of People-to-People Exchanges. 
Over the past seven decades, China and Africa have remained committed to the principles of sincerity, real results, amity and good faith, as well as the approach of pursuing the greater good and shared interests, forging a path of mutually beneficial cooperation. Bilateral trade reached US$348 billion in 2025, and China has remained Africa's largest trading partner for 17 consecutive years. From the Mombasa–Nairobi Standard Gauge Railway and cross-border telecommunications networks to the promotion of Juncao technology and numerous "small yet beautiful" projects such as water wells and rural water supply systems, China-Africa cooperation has delivered tangible benefits to the lives of African people. 

On May 1st, China started granting zero-tariff treatment on 100 percent of tariff lines to all 53 African countries with which it has diplomatic relations, further opening its market and sharing development opportunities with Africa. More recently, following the outbreak of a new Ebola epidemic, China promptly provided emergency humanitarian assistance to the affected countries and the African Union, once again demonstrating the true meaning of the all-weather China-Africa community with a shared future for the new era.

At present, under the leadership of the CPC, the Chinese people are steadily advancing toward the goals of basically realizing socialist modernization by 2035 and building China into a great modern socialist country in all respects by the middle of the century. On this new journey, China-Africa cooperation enjoys even broader prospects. China will continue to support Africa in implementing Agenda 2063 and deepen cooperation in such areas as industrialization, agricultural modernization, infrastructure development, green energy, the digital economy, public health and youth development, helping Africa achieve independent and sustainable development. China will also continue to work with Africa and other developing countries to promote greater representation and a stronger voice for the Global South in international affairs, and to make the international order more just and equitable.

History has shown that solidarity is the key to overcoming challenges, while independence is essential to shaping one's own future. The CPC's 105 years of struggle have also demonstrated that any country can achieve development and national rejuvenation by staying true to its founding mission, remaining firmly rooted in its people, and pursuing a development path suited to its own national conditions. 

China and Africa share similar historical experiences and common aspirations for development. More than ever, we should stand together, firmly keep our future in our own hands, and work to deliver even greater outcomes through the all-weather China-Africa community with a shared future for the new era—bringing greater benefits to our peoples and making new contributions to the progress of humanity.

Advertisement Open for LOCAL Procurement

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Topic- UNICEF (Ethiopia) wishes to request eligible bidders to participate in an Invitation to Bid (LITB-2026-9204770) 🙂 for the Procurement of Tablets and Laptops.

Details of the requirements for this bid and eligibility criteria etc. can be found in the bid document.

Interested and eligible bidders from local companies can get the bid document in the

Link:

https://tender.2merkato.com/tenders/6a43acea0a538ac13a000001

Any query or clarification regarding this bid shall be sent through an email to ETH-SupplyQAgoods ETH-SupplyQAgoods@unicef.org before or on 08 July 2026. Bid clarification will be posted on the same websites mentioned above to all bidders. While sending your request for clarification, please ensure that you specify the LITB number in the subject email, provide the name of the company, contact person, email and mobile number.

The due date for submission of proposals/Bids to the secured e-mail address                                                                         eth-Tendergoods@unicef.org is on or before 11:59 PM (East African Time) on 13 July 2026

Please quote the respective detail – LITB-2026-9204770 – Procurement of Tablets and Laptops) in all your correspondences. UNICEF reserves the right to accept or reject any or all proposals received in response to the ITB, to request either wholly or in part new proposals, or to negotiate with any proposer considered qualified in any manner deemed to be in the best interest of the Organization.