The state owned insurance giant, Ethiopian Insurance Company (EIC), discloses that it has carried out a strategy to cope up with the opening up of the financial sector.
The company that dominates the insurance industry said that it has had a business strategy that shall allow the company to manage operation with local competitors.
The latest government initiative in the opening up of the financial industry for foreign operators and the coming of continental free trade is noted to be a new experience for the sector.
Based on that, EIC’s CEO Netsanet Lemessa, disclosed that the insurer has developed a new program, which considers the new coming competition.
He said that the previous strategies had considered the closed market whic
h now has to evolve given the change and imminent business trend.
“As per the new program, EIC with its partners will facilitate a capacity building, experience sharing and professional assistance for staffs,” he said.
The insurance giant in the just ended financial year registered a great performance despite its claim payment spiking by 327 percent.
The state owned company disclosed that in the 2021/22 financial year, it secured 1.3 billion birr which is 17.1 percent higher than the preceding year.
In the year, the company underwriting result was 1.8 billion birr which is an increase of 29.1 percent from the performance attained in the 2020/21 financial year.
Its revenue from investment and others sources also had great results standing in at 528.3 million birr with 10.3 percent year on year growth.
The gross written premium for the year also registered an increase by 7.3 percent to reach 6.5 billion birr. The share of EIC’s premium is 39.3 percent of the industry, which has 18 operators including 17 private companies.
However, in the year the claim settlement had spiked by 327 percent to stand at 5.4 billion birr.
EIC’s CEO said that even though th
e amount of claim paid had significantly increased compared with the preceding year it was still 33.7 percent lower from the projection that the company set for the year.
At the end of the financial year, EIC’s coverage has reached four trillion birr with over a quarter increment compared with the same period of last year.
EIC fortifies strategy as financial sector opens up
Ethiopia preps for third round nationwide polio eradication campaign
Ethiopia plans to launch a massive integrated preventive Polio campaign nationwide.
Health minister Dr. Lia Tadesse met on August 31 with Rotary National Polio Plus committee chair, Teguest Yilma, senior program officer at Bill and Melinda Gates Foundation Andrew Stein and Dr. Kimberly Porter and representing WHO Afro region Chris Kamugisha in view of the recent outbreaks of polio around the world and the importance of good outbreak preparedness and response in Ethiopia.
As indicated during the meeting, Ethiopia has made progress in controlling the polio outbreak and conducted successful national and sub-national polio campaigns in the last two years. Moreover, great strides have been achieved to strengthen routine immunization with enhanced surveillance activities and social mobilization strategies, in addition to awareness creation within the population.
However, given the recent outbreaks and new cases of polio virus in Africa and beyond, Rotary international recognizes that the global polio eradication initiative is at a critical juncture that challenges countries to intensify their efforts, as any form of poliovirus anywhere in the world is a threat to children everywhere.
Ethiopia joined the polio eradication effort in 1996 and was able to interrupt endemic wild polio virus transmission in 2001. The country has experienced, over the years, five different importations from neighboring countries between in 2004 and 2014.
Although Ethiopia had achieved polio free status in June 2017 and the African continent was certified polio free in August 2020 by Africa Regional Certification Committee (ARCC), the country experienced in 2019 an ongoing cluster of cVDPV2 (Circulating vaccine derived polio virus) outbreaks with the first onset of paralysis recorded on 20 May 2019 in Somali Region, Dollo Zone .
Since May 2019, more than 50 cVDPV2 cases have been detected and reported in Ethiopia.
As a response to these outbreaks, supplemental immunization activities (SIAs) were conducted in 6 regions in selected high-risk zones – Somali, Oromia, SNNPR, Addis Ababa, Hareri, and Dire Dawa – in 2020.
Ethiopia further conducted two rounds of NIDs in October 2021 and April 2022 where over 17 million under five children were vaccinated in each round. Since then no new cVDPV2 case was detected. The last case was reported on 16 September 2021 from Darimu, Ilubabor Zone, Oromia Region.
Ethiopia’s progress in controlling the polio outbreak and strengthening routine immunization despite the COVID 19 pandemic was noted as highly commendable during the meeting. Forging ahead in leveraging the partnership for preventive campaigns and support on polio transition and surveillance system was also stated as vital in assisting the country’s effort to end polio.
These measures coupled with continued political commitment have been identified as critical to building on the progress and achieving eradication.
It was noted how vital it is to implement campaign especially in conflict areas, but the danger of importation from Djibouti, Somalia and Eritrea where polio cases have been identified was also acknowledged at the meeting. A coordinated polio immunization campaigns with neighboring countries were encouraged.
The newly revised response plan that is being implemented focuses on polio surveillance activities, routine immunization strengthening, mapping of cross-border movements and integration of polio eradication activities with humanitarian responses.
The upcoming massive integrated preventive campaign is scheduled for October-November this year. It will not only target polio, but also includes rendering measles, fistula, cleft palate, deworming and nutrition related supports, so as to utilize resources efficiently as indicated by the minister during the meeting.
Tele curves new pathway for settling dues, through tele birr
Ethio Telecom’s telebirr proves instrumental in paying dues as the telecommunications firm begins implementing telebirr based tax payment system to enable category A and B federal tax payers in collaboration with the revenue ministry.
On Thursday September 1, 2022 Ethio Telecom signed an agreement with the Federal Documents Authentication and Registration Agency (DARA) to implement telebirr based service payments to enable customers of the agency to utilize telebirr payment systems in order to settle their service payments.
“This partnership agreement will modernize the existing working system of the agency and will enable its customers to settle their service payment using the telebirr digital payment system which is an easy, fast, and convenient and secure payment platform,” said Frehiwot Tamiru, CEO of Ethio Telecom.
Speaking at the ceremony, Muluken Amare, director of the agency, emphasized that these system will decrease frauds and mismanagement, “We have been working for the last 4 years to digitize our system and this agreement will help us to achieve our target.”
Consequently, the customers can easily settle service charges via telebirr mobile App or USSD (*127#) for authentication services like vehicle sale, donation, power of attorney, rental and loan agreement, memorandum of association and other similar services using the payment reference number they receive from the agency.
Federal Documents Authentication and Registration Agency has 15 branch offices and has been providing 27 different types of services as well as serve more than 7,000 customers and over 6.5-million-birr transaction is made per day.
“Ethio Telecom is working to simplify national payment system, and soon telebirr will start providing payment service for category A and B tax payers. We are also working to facilitate the system with the revenue ministry,” said Biruk Adhana, head of telebirr at Ethio Telecom, adding, “Ethio Telecom is further working with the Ministry of Innovation and Ministry of Trade to facilitate a telebirr based E-service.”
Telebirr has now more than 23 million customers. Recently, the company in partnership with Dashen Bank has launched three types of financial services namely telebirr mela (micro credit) a service that allows individual customers, agents and merchants to borrow money for any transaction or withdrawal and telebirr endekise (credit pay/overdraft service) a service that enables customers to borrow money when they are short of balance in their telebirr account while making transaction and telebirr sanduq (Micro Saving service) a saving service which is available with interest free and interest rate based micro saving services with a theme of finance for all to ensure financial services inclusion and accessibility to our wider society.
Local leather goods to capture int’l eye at Bole airport
Ethiopian leather goods visibility receives a boost to the international eye as leather products are handed booths at one of the busiest terminals in Africa, Bole International Airport.
Through the initiative of the Ethiopian Leather Industries Association (ELIA) and the Leather and Leather Products Industry and Research Development Centre, local leather goods manufacturers have got the chance to promote Ethiopian products that has become popular in African markets, as it continues to be exported throughout the world.
Mohammed Hussein, head of Leather and Leather Products Industry and Research Development Center, a government body responsible on follow up of the sector, said the eight companies have got their booth at the airport, “the initiative is crucial to promote Ethiopian leather products besides a service like gift shops.”
He told Capital that the association is responsible in selecting the companies and management of the overall initiative.
It can be recalled that Prime Minister Abiy Ahmed came up with the idea to connect the Ethiopian Airlines potential with other economic values. For instance, through similar initiative city tour and other tourism destination visit have been linked for transit passengers through the tourism package, ET Holiday service of the airlines.
Using the terminal to promote Ethiopian services and goods is also another idea initiated by the PM.
Bole International Airport, which is also managed by Ethiopian Airlines, has a capacity to accommodate over 22 million travelers per annum that makes the facility as one of the busiest terminal in the continent.
Experts said that the idea to promote Ethiopian goods at the facility is a perfect market besides generating foreign currency from gift sales.
So far the leather shops being opened in the facility will come from different levels and will present their prominent brands to capitalize on the opportunity.
A couple of decades back, leather and leather goods were one of the major sources of hard currency which have now been replaced by horticulture.
The changing behavior of the global market for alternative items like synthetic goods including for the footwear industry has been stated as one of the challenges for the traditional leather goods businesses.
Currently, the government has given keen attention for the sector development mainly to replace the import, which consumes not less than USD 400 million annually.
Through the new initiative of import substitution, the local leather goods manufacturers are able to benefit from the supply in the school system scheme, military and other public entities that have huge demand for leather goods.
Regarding quality production, the sector has been able to reel in successes.
Ethiopia has three internationally certified leather sector laboratories, which are crucial to supply globally competitive goods for the export market.
