Abay bank prepares to inject and sell new shares to the public as it aims to increase its capital to 12 billion birr.
According to the bank’s annual report, the 2021/22 fiscal year generated a total income of 4.4 billion birr registering a 30 percent growth from the previous year. As indicated on the report, the financial firm has continued to exhibit significant year on year growth in profitability measures registering a gross profit of birr 1.3 billion for the 2021/22 fiscal year.
“The banking sector is changing from time to time with regards to regulations and the number of actors in the sector is changing and increasing. Foreign actors are also expected to get in to the sector,” said Wondifraw Tadesse, chief strategy and marketing officer of Abay Bank, adding, “Abay bank therefore needs to compete sustainably with these changes.”
The total recorded capital of the bank in the ended fiscal year was 5.9 billion where the paid up capital was 3.97 billion which showed a growth of 41 percent from the fiscal year 2020/21 after an injection of 1.16 billion birr by the shareholders.
“We want to make the bank owned by the greater public, hence the selling of the new shares,” said Wondifraw, adding, “There is a big interest among the public to acquire shares. Likewise, it is important to diversify our shareholders, which is important in the banking sector.”
The bank has so far about 4000 share holders.
In the year under review, the total asset of the bank has reached 40.7 billion birr showing 36 percent growth from the 2020/21 fiscal year which was 10.8 billion birr. As explained on the report, the loan and advances had been instrumental to the spelled growth in the total asset.
As of June 30, 2022, the bank’s total deposit stood at 32.4 billion showing an increase of 35 percent from 2020/21. During the year, an additional deposit of 8.5 billion birr was mobilized from both conventional and IFB sources.
Similarly, the deposit position, saving demand and time deposits attained a growth rate of 19 percent, 83 percent and 103 percent respectively.
The bank recruited more than 470k new customers of conventional and IFB service in the fiscal year attaining an annual increase of 39 percent to reach 1.67 million customers of deposit aggregate.
The outstanding loan that the bank has given to its customers has reached 27 billion birr of which 26.3 billion is said to be conventional while the remaining was provided through IFB customers.
As indicated by Wondifraw, the overall non-performing loan of the bank in the year has increased to 3 percent which was 1.5 in 2020/21.
The total expenses of the bank during the fiscal year have now reached 3.1 billion birr growing by 39 percent from last year.
According to the bank due to lack of western based correspondent banking relations, global economic slowdown, COVID 19 and ongoing conflict in the northern part of the country, the banks foreign currency mobilization slipped by only 18 percent from the previous year. Proportion of foreign currency mobilized from the export sector took the lion share by 74 percent followed by SWIFT transfer 18 percent and others 8 percent.
Additionally, as indicated by the bank due to the conflict in the northern part as of now about 25 percent or 70 of its branches are off from services. Nonetheless, during the year the bank has opened 87 new branches reaching 373 branches in total.
Abay bank to sell new shares to the public
Trade ministry lifts sesame seeds price cap
The Ministry of Trade and Regional Integration (MoTRI) lifts the price cap which was re-imposed early this month for the trading of sesame seeds at the Ethiopian Commodities Exchange (ECX). The ministry disclosed that it will follow a flexible approach to manage the market.
The information that Capital obtained from sources indicates that the ministry has lifted the ceiling price for the oil seeds, which is one of the major hard currency sources from the agricultural export.
Slightly over a year ago, MoTRI which is responsible for the follow up of the export sector introduced price caps on the aim to tackle unfair competition on access to commodities at the trading platform of ECX.
Following the introduction of the caps, the ministry in consideration of the international market has been providing weekly upper caps on the prices for major export commodities such as oil seeds and pulses trading.
It can be recalled that MoTRI lifted ceiling prices for the commodities trading at ECX prior to this harvest season which mainly starts mid-October. At the time, it was stated that it lifted the cap due to the decline in hoarding. However, at the time experts had raised concerns that the decision would have an effect on the export business.
A few weeks ago, Kassahun Gofe, State Minister of MoTRI, told Capital that the ministry reinstated the price cap on sesame seeds due to price hikes occurring in the local trading against the global market.
He added that the main objective of the cap is to harmonize the price.
However as per the information Capital obtained this week, MoTRI has lifted the cap after a few weeks of re-introduction.
On Friday November 25, Kassahun told Capital that the ministry is following a flexible approach led by the market.
“We have lifted the ceiling and will take the market approach as per the evaluation of the parameters that we applied,” he elaborated, adding, “Our principle is similar and remains integral to ensure the smooth operations of the sector.”
He illustrated that when the cap was re-imposed about a few weeks ago, the price spiked to 12,000 birr per quintal for the Wolega type of the commodity and even higher price points for Humera.
“As per Thursday’s trading, the price of the commodity is between 9,000 to 10,000 birr per quintal,” he cited.
“If the price shall show increment extraordinarily we will impose the price cap,” he explained showing follow up cautionary measures.
“We have different modalities including contract and investment farming. In the investment farming, huge amounts of sesame seeds have been harvested, thus we are confident that the sector will operate smoothly,” he confidently stated, highlighting how the market will not be abused.
He said that the commodity is flowing in the market with export similarly running within the acceptable manner.
MoTRI is following the trading of 16 oilseeds and pulses that trade at ECX.
Second power transfer tests to Kenya to start next week
The Ethiopian Electric Power (EEP) discloses that power transfer tests will start next week for the second pole of the Ethio-Kenya transmission line which officially began exporting energy to the bordering nation.
During the latest visit of top officials from Commercial Bank of Ethiopia and media at the Wolayta Sodo Converter Station, which is aligned with the Wolayta Sodo Substation which was erected about a decade ago to manage the power coming from Gibe III, Habtamu Girma, Operation Head of the Converter Station, explained that the first pole of the transmission line is fully functional and had begun power export a week ago.
The operations head explained that through the testing period, 65 MW of power have been exported, “And now we have successfully accomplished the test of up to 200MW.”
As per the project design, the two poles will each have a capacity to transfer 1,000 MW of power. As a result, as per the current plan, the export would be up to 250 MW, “Hence, the first pole has the capacity to accommodate the current export scheme.”
According to Habtamu, the second pole test will be undertaken as per the schedule, which is early this week.
The High-voltage direct current (HVDC) Converter Station which is located about 10 kilometers North West in the outskirt of Wolayta Sodo town is the EPC project carried out by Siemens AG of Germany at a cost of USD 214.5 million.
Besides converting energy from AC to DC, the state of the art facility has also additional features for the sector in Ethiopia, which includes the setup of ground electrode lines, installed about 22 km south of Wolayta Sodo town.
Tewodrose Ayalew, Project Manager of the HVDC Converter Station, told Capital that the ground electrode lines are an alternative means of transmission lines besides the two poles.
He said that the technology applied on the project is crucial to keeping power supply fluctuations at bay for the client in Kenya.
According to Kibrom Kahssay, Executive Officer of EEP for the Transmission and Substation Construction Project, the project is a big move for the sector in the country since it applies one of the rear technologies not only for Ethiopia but also for the continent.
“The technology applied on the current project targets to minimize power wastage and ensures the supply of sustainable power in addition to financial viability,” Kibrom explained.
Experts at the site said that the facility has a capacity to ensure uninterrupted and reliable transmission of power.
The Executive Officer said that as per the initial stage of the agreement between the two countries that will end in the coming three years, 200 MW energy will be exported to the neighboring country generating over USD 100 million per annum.
In the second three year phase, the export amount will be 400 MW which will double the revenue while in the future the facility will have a capacity to carry 2,000 MW. At this stage the country will generate USD one billion from the export of energy up to South Africa.
“Besides the financial benefit the project has a good implication for the regional integration and has socio-economic benefits for the region,” he added.He said that at the current stage, the export is carried out on a trial level but it is operating successfully.
The transmission line, protection and data communication line (optical ground fiber) extended through the Ethiopian border is 440 kilometers long and has 994 towers. The transmission line project which is managed by the Chinese CET consumes about USD 120 million and has the capacity to regulate 500 KV.
As per the agreement between the two sides, Ethiopia would sale its electric power at a price of 6.5 US cents per one-kilo watt for the coming five years which will be revised after the end of the first five year period.
The 8th International Congress “SKIN ON THE MOVE” successfully held across Ethiopia
The 8th edition of the International Congress “Skin on the Move”, by the title “Tropical Neglected Skin Diseases, Global Health and COVID-19 Pandemic”, has been held from November 21-16 in Addis Ababa, Arba Minch and Sodo.
This Edition 2022 was promoted by “Regina Elena” National Cancer Institute and ”San Gallicano” Dermatological Institute in collaboration with Ethiopian Research and Medical Institutions such as the University of Wolaita Sodo Teaching Referral Hospital and St. Paul’s Hospital Millennium Medical Collage.
The Congress study and debate were centered on crucial questions about Tropical Neglected Skin Diseases and Global Health also in relation to the COVID-19 Pandemic.
Dermatologists, health professionals and all specialists including students participated on the congress in promoting and supporting research, strengthening primary health systems, studying the socio-political and cultural contexts, improving collaboration between local communities and health workers and promoting a global health idea to improve the lives of people around the world.
The scientific program consisted of clinical sessions, held in local public facilities in remote areas, workshops, state-of-the-art lectures and free discussions with distinguished experts from all over the world.
The program was launched on Monday November 20, 2022 at the Italian cultural institute with the presence of Italian ambassador, Augustine Palese and various guests.
