Lion Bank launches a digital services app called “Alegnta” that allows it to provide digital credit services without collateral.
In a launching ceremony held on April 3, 2023, at the Hyatt Regency Hotel, the bank announced that it has allocated a 500 million birr revolving fund to be used for the digital loan service, which mainly has six different products.
Daniel Tekeste, president of the bank, explained that the service includes Alegnta salary loans, Alegnta for ride and taxi drivers, Alegnta for small and medium enterprises, Alegnta for electronics and furniture purchases, and Alegnta for those who need financial support.
“The bank is partnering with Quantum Technology Solutions on the development of the Alegnta service application, and Alegnta stands to serve citizens who are managed by salary and daily income,” said the president.
The president added that the digital loan service is a collateral-free service and that any customer with a savings account can access the service only by using their mobile phone. According to the bank, the loan approval process is done in a way that takes into account the income status and repayment capacity of the customers, and 500 million birr have been allocated for the purpose.
Sofonias Embibel, Chief Executive Officer of Quantum Technology Solutions, who developed the application, said that Alegnta was made to focus on credit services in consideration of the growing needs of customers. “Although quantum technology has been launched recently, it is now developing several applications for various organizations and financial institutions to make everything simple and convenient for their operation and services,” Sofonias said.
Currently, customers can access loans and make payments to overcome the financial problems that exist in between salary payments on the Alegnta Salary Loan Service, which has been put into operation. It’s been stated that the remaining four credit services will be put into operation until June, and the full operation of this system will benefit the customers of other banks as well.
In recent times, local private banks have been introducing digital lending services, especially in the last year. Although digital payment is gaining momentum in Ethiopia, it is said that it is not enough for the wider Ethiopian society and is still in its infancy.
Lion bank enters the digital lending landscape with ‘Alegnta’
Customs lifts stringent preconditions on automobiles traversing Ethio-Djibouti borders
Ethiopian Customs Commission (ECC) lifts its precondition imposed on automobiles coming from Djibouti.
The commission a few months back had applied a stringent new system that forced incoming and outgoing private automobiles to deposit customs duty and tax of cars at the customs gate, or provision of a bank guarantee to enter Ethiopia’s border and or to Djibouti.
The new scheme was met with much displeasure by Djiboutian citizens who prefer to travel to Ethiopia during the heavy hot summer season as well as for personal reasons or business trip during any time of the year.
Those who Capital spoke to regarding the matter and who in fact have close relatives with Ethiopian citizenship, indicated that in the past such precondition were non-existent in terms of crossing the Ethiopian border and staying in the country.
They stated that the new scheme has become a huge obstacle in their movements in recent months.
However, ECC on the other hand claims that the new system was imposed for due diligence, in order for the commission to know the incoming cars to combat illegal activities in the process.
The commission disclosed that depositing customs duty and tax arrears or bring bank guarantee will allow to control cars that are coming in and out, to leave the country as per the time frame permitted to stay in Ethiopia.
It added that the target was to impose such a system for cars that entered the country with a tourism purpose in order for them not to leave the country without settlement of relevant levy as well as in combating illegal activity.
The issue was heavily raised and discussed upon in the latest joint ministerial committee meeting. At the meeting, the Djiboutian side cited that the new scheme would affect the relationship of the two countries.
The issue had also been one of the agenda items on the meeting of the two countries customs technical committee.
Both sides agreed to apply on another controlling mechanism to tackle the potential problems regarding the concern of ECC.
As per the decision, the two sides agreed that detailed information of automobiles be registered on the system with the data shared between the two countries.
According to the letter that was issued a week ago from ECC, the precondition which was earlier imposed has been lifted.
The letter that was signed by Debele Kabeta, Commissioner of ECC, and sent to ECC branches including in Djibouti and Tadjoura indicated that Djibouti’s Customs and Excise Tax Administration will provide information about private automobiles that enter to Ethiopia.
It added that customs branches are now supposed to fill information on the relevant technologically based system and to follow up the automobiles which leave the country as per the permitted period.
It also underlined for the relevant division of the commission to improve the system that shall share information with Djibouti’s counterpart.
It is to be recalled that Capital recently reported that in the latest meeting had between the two countries, officials also agreed to lift the request for a harmonized system code and area code that was applied by Djiboutian Customs a few months back.
Agribusiness takes root at the banks of River Bilate
Agribusiness investors’ commitment reaps benefit in the cultivation of fruits, vegetables and cereals at River Bilate’s banks, as investments continue to flow in the area.
Mechanized farming has now taken full shape in the area of the seasonal river that divides Sidama and SNNP region.
This has lured prominent tycoons such as Belayneh Kinde, who is not new to farming, to invest in the area and has now joined the scheme by taking 550 hectares of land on the eastern bank of the Bilate River.
According to Anteneh Abebe, Agriculture Division Head at Belayneh Kinde Group, the company took over the land about four months back and several activities have been done to nurture the land.
In the past few months, the company prepared the land for cultivation and currently about 400 hectare of land is covered by wheat as part of a dry farming initiative.
The rest of the land is also planted with avocados, which is an emerging and lucrative fruit type in the sector.
Of all the successes registered over the few months, the company cites the construction of a 4km coffer dam at its summit of achievements.
“Cultivation in the area had long been difficult because of the overflow of the Bilate river, that flows for almost eight months in a year,” Getinet Alemu, Manager of the farm explains, adding, “In the rainy season, the river over flows to the main land which for long had been a nightmare for farmers in terms of cultivation in the past. The dam now serves as a sustainable solution both in terms of agri-production and daily business lives for the locals.”
He further elaborated that gradually the wheat farm will be replaced by different fruits trees that are now under preparation.
Similarly, in this short period of time, the farm has also constructed a 20km all season gravel road that will allow the investor to keep its operation swiftly.
On the western bank of the Bilate River in Wolayta zone, SNNP region, which is adjacent to Belayneh’s farm, magnificent agricultural activities have been accordingly been underway for the past one and half years.
On the other side, the investment activity owned by Dagne Dhaba has developed different fruits including lemon that covers 50 hectares, orange 100 hectares, avocado and papaya that cover each 300 hectares as well as banana at 350 hectares.
Currently the farm, Dagne Dhaba Agricultural Products Exporter, is supplying up to seven trucks each of banana and papaya on a daily basis to the market.
And as farm manager Bayissa Baha explains, the farm is preparing to supply avocado for market.
“For the last about ten months, we have been supplying banana and papaya to the market on a daily basis and this will cut across our other fruits as well,” he added
According to Bayissa, the lemon and orange production is expected to be available to the market very soon. Besides the local market, the farms is also supplying the agricultural products to neighboring countries and in the near futures products like avocado will be exported to the European and Middle East market.
The marvelous achievements registered at the farm in under two years are attributed to the full engagement and commitment of the investors who spend a majority of their time at the farm.
“We have constructed an electric transmission line by ourselves that also benefits 250 households that reside here, and a 25km road which eases accessibility. Waters systems such as eight well drilling spots which cost us hundreds of millions of birr have been invested for sustainable production,” he added.
The farm also serves as an input supplier to the region. In the past harvest season, wheat seeds, improved red kidney bean seeds and maize have been distributed to farmers in the region that are sourced from the Dagne Dhaba farm.
For this coming season, the farm is also cultivating sunflower and maize seeds that will be supplied to farmers.
Apart from the two farms that have registered great success in a short time span, is pioneer of the area Bereket Worku, who received 600 hectare of land at Bilate on the right side of the prominent military camp in Wolayta Zone of SNNP.
According to Mesfin Seyoum, Farm Manager at Bereket Worku Farm, they received the farm about two and half years ago, but activities remain very limited.
For instance, in the past over two years, the farm cultivated a very limited land from the total it received. The manager said that currently, the farm supplies about 50 trucks of tomato and pepper to the market.
Despite cultivating few hectares of land with banana, papaya, cassava and avocado the farm has never delivered any of these fruits to the market.
“Engaging on the investment is a vital decision but taking prudent follow up and utilizing the land resource is key to the success of agri-businesses in the area,” an expert who knows the Bereket Worku’s farm remarked.
The farm seems to have fallen behind to new comers who have hit the ground running.
Mesfin to this end admitted that his farm is still on its trial test period, and opined that in the near future the developments will take shape.
“So far we can say we are on a trial period but we may grow up in the future,” he said.
IATA’s “Focus Africa” to Strengthen Aviation’s Contribution to African Development
The International Air Transport Association (IATA) is launching “Focus Africa” to strengthen aviation’s contribution to Africa’s economic and social development and improve connectivity, safety and reliability for passengers and shippers. This initiative will align private and public stakeholders to deliver measurable progress in six areas.
“Africa accounts for 18% of the global population, but just 2.1% of air transport activities (combined cargo and passenger). Closing that gap, so that Africa can benefit from the connectivity, jobs and growth that aviation enables, is what Focus Africa is all about,” said Willie Walsh, IATA’s Director General.
Infrastructure constraints, high costs, lack of connectivity, regulatory impediments, slow adoption of global standards and skills shortages affect the customer experience and are all contributory factors to African airlines’ viability and sustainability. The continent’s carriers suffered cumulative losses of $3.5 billion for 2020-2022. Moreover, IATA estimates further losses of $213 million in 2023.
Delivering on Africa’s Opportunities
Sustainably connecting the African continent internally and to global markets with air transport is critical for bringing people together and creating economic and social development opportunities. It will also support the realization of the UN’s Sustainable Development Goals (UN SDGs) for Africa of lifting 50 million people out of poverty by 2030. In particular, trade and tourism rely on aviation and have immense unrealized potential to create jobs, alleviate poverty, and generate prosperity across the continent.
Africa has a solid foundation to support the case for improving aviation’s contribution to its development. Pre-COVID aviation supported 7.7 million jobs and $63 billion in economic activity in Africa. Projections are for demand to triple over the next two decades.
“Africa stands out as the region with the greatest potential and opportunity for aviation. The Focus Africa initiative renews IATA’s commitment to supporting aviation on the continent. As the incoming Chair of the IATA Board of Governors, and the first from Africa since 1993, I look forward to ensuring that this initiative gets off to a great start and delivers benefits that are measurable,” said Yvonne Makolo, CEO of RwandAir and first female Chair of the IATA Board of Governors (2023-2024).
Six Critical Areas
“The limiting factors on Africa’s aviation sector are fixable. The potential for growth is clear. And the economic boost that a more successful African aviation sector will deliver has been witnessed in many economies already. With Focus Africa, stakeholders are uniting to deliver on six critical focus areas that will make a positive difference. We’ll measure success and will need to hold each other accountable for the results,” said Walsh.
The Power of Partnerships
“Partnerships will differentiate the outcome of Focus Africa from previous efforts to stimulate Africa’s development with air transport. By partnering, stakeholders will effectively pool their resources, research, expertise, time and funding to support the common goals of the six work areas,” said Kamil Al Awadhi, IATA Regional Vice President for Africa and the Middle East.
The partners will be announced and join forces in Addis Ababa on 20-21 June to officially launch the Focus Africa initiative with more details for each task area.
The Timing is Right
Africa continues the path to recovery from the COVID-19 crisis. Air cargo is 31.4% over 2019 levels and air travel is 93% of 2019 levels. Full recovery for air travel is expected in 2024.
“The tasks for Focus Africa are not new. Work is already underway as part of the work of IATA and other stakeholders in Africa. But after the financial trauma that the pandemic brought to African aviation, we are at a unique time of rebuilding. By launching Focus Africa now, we can ensure that the recovery from COVID-19 moves aviation to an even better place than we were in 2019,” said Al Awadhi.
