Ethiopia has become the first African nation to chair the global airfreight institute that promotes international air cargo.
The annual congress of the International Federation of Freight Forwarders Associations (FIATA), the global logistics association, has also approved the chairmanship of Ethiopia for its regional wing.
On the congress of FIATA held two weeks ago, Ethiopia was elected to chair one of the four FIATA’s regional wing, Region Africa and Middle East (RAME), and the Airfreight Institute (AFI).
According to Ethiopian Freight forwarders and Shipping Agents Association (EFFSAA), who is member of FIATA, two Ethiopians have been nominated by the association to chair the international associations.
It was stated that the competition to get the position for AFI was very tough since the interest from western countries was very high, while Ethiopia successfully secured the post with higher vote.
As a result, the former president of EFFSAA, Salahadin Khalifa, and the current vice president of EFFSAA, Dawit Wubshet have been nominated by the association for RAME and AFI respectively.
The local association that was formed in 1998 indicated that Salahadin, who is well know by his active involvement on the logistics issues and leader of one of the biggest logistics company in Ethiopia has been elected to chair RAME for two years. Before he came to the top seat, Salahadin served RAME as vice chairman.
Similarly Dawit, who has ample experience on the sector, has been elected to lead AFI for the coming two years.
The assignment of Dawit at AFI was also stated as historical since he is the first chair from the African continent to lead the over five decades institute which has actively pursued its mandate to define, craft and promote the role of the forwarder in international air cargo.
AFI is inclusive of a wide spectrum ranging from non-governmental organizations, special interest groups, government bodies, regulators, carriers, shippers, consignors, customs groups, legal specialists, cargo risk underwriters and technology providers.
AFI’s has a proactive posture on issues which may impact the international forwarding community and has reputation within the global transport industry as the go-to group for consultation and action on air cargo issues.
The EFFSAA said that the latest development is indicated that the capacity of the two individuals, “it a big recognition for the association, who is representing the country to have a big role in the international arena.”
It is stated that the opportunity to lead the two logistics associations shall benefit Ethiopia to pursue the experience of others in the sector development, while it has also an input for the country to make it a hub for logistic services.
“The representation of Ethiopia on these higher bodies shall also facilitate the opportunity for the local association to promote and attract foreign direct investment, job creation and technology transfer,” EFFSAA said on the press release sent to Capital.
Ethiopia makes history in airfreight logistics
Nyala Insurance registers 30 per cent Profit Growth
Nyala Insurance S.C. (NISCO) disclosed that it has recorded a gross profit of birr 194.4 million from its general and long-term insurance operations, an increase of 30.2 per cent compared to the previous fiscal year.
As it has been done in the past consecutive years, the shareholders have also unanimously agreed Birr 100 million to be retained from the net profit in order to increase the paid-up capital of the company to over Birr 700 million.
During his presentation on the company’s annual performance report to the company’s shareholders who attended the 27th General and the 20th Extra Ordinary General Meeting held at Sheraton Addis on 2nd December 2021, Getachew Birbo, the Chairman of the Board of Directors, said that regardless of the frequent challenges and difficulties happened to the nation NISCO has realized outstanding achievements as compared against the preceding fiscal year.
According to the chairman’s report, the underwriting surplus generated from the general insurance businesses has surpassed Birr 160 million, showing a total growth of 30.6 per cent as weighed against the preceding achievements.
Likewise, the chairman underscored that NISCO also registered a 12 per cent growth in its long-term (life and health) insurance business and thereby secured Birr 112.9 million, and added the total asset of the company stood at Birr 2.5 billion, an increase of 12.7 per cent over the previous fiscal year.
On the other hand, the net claims of the company slightly increased from about Birr 175.3 million to Birr 183.1 million, he outlined. Consequently, the loss ratio of the general insurance resulted at 38 per cent, a 10 per cent decrease compared to the previous production period.
The chairman added that the reasons for the remarkable achievements in the premium income were due to the company’s prudent underwriting practices, implementation of business innovations based on the customers’ needs and demands.
Yared Mola, the Chief Executive Officer of Nyala Insurance S.C., on his part underlined that Nyala Insurance is embarking on digital insurance services. He added that the company has availed one fully digitalized service and is dedicatedly working to add more.
Yared emphasized that the success of tomorrow’s insurance business is heavily dependent on how the company is accessible to the digital natives.
Established in 1995 with a paid-up capital of Birr 7 million, NISCO has recently launched the first of its kind insurance product in Ethiopia, named ለ-Mobiሌ (for my mobile). This policy is systematically designed to effectively meet the growing needs and demands of those who want to protect and insure their smartphones apparatuses against all accidental losses, screen damages, breakdowns and thefts, without having any face- to- face transaction.
Zemen bank surpasses projections reeling success in all-fronts
Extra ordinary financial service providers, Zemen Bank registered massive success in the past financial year which was above its projection.
The bank which concluded its general assembly a week ago announced that in the 2020/21 financial year it was able to attain success in different aspects of measure.
Most of the performances surpassed expectation which was designed for the financial firm at the beginning of the financial year.
On the stated financial year, the bank had projected to earn 2.54 billion birr in revenue from different banking services, while the actual performance reeled home 2.9 billion birr which was almost 13 percent higher than the projection set at the beginning of the year.
Similarly, the revenue performance has climbed by 34 percent compared with the 2019/20 financial year.
According to the Board of Directors report, the main reason for the expansion of the revenue was the contribution of interest earnings that stood at 1.9 billion birr with 22.2 percent increment compared with the preceding year.
The contribution of international banking and related services was over a billion birr of revenue which increased by 51 percent compared with the projection and 58 percent compared with the 2019/20 performance.
As per the directive of National Bank of Ethiopia (NBE) that ordered banks to surrender their 30 percent of hard currency earnings for NBE, Zemen has contributed USD 127 million. In the year the bank has generated USD 418 million from its international banking service, which is one of the strongest business sides for the bank.
The hard currency generation has increased by USD 35.7 million or 9.3 percent compared with the same period of last year.
According to the annual performance reported at the general assembly, Zemen Bank has secured gross profit of 1.35 billion birr that is higher by 21.3 percent compared with the target and 35 percent compared with the same period of the preceding year.
The profit before tax for the year stood almost at 1.3 billion birr showing increase of 30 and 16 percent from the preceding year and from projection respectively.
According to the annual report, the bank’s total asset stood at 25.2 billion birr that increased by 6.7 billion birr or 36 percent compared with a year ago performance, “the contribution of saving and loan amount is the major reason for the increment.”
The total outstanding loan of the bank that it provided for customers has expanded by over 44 percent and reached at 14 billion birr. Similarly the deposit mobilization has increased by 32 percent and stood at 19 billion birr which has also increased by over 6 percent compared with the projection to attain for the year.
For the year the earnings per share for the year has also stood 46.9 percent that was 46.2 percent a year ago.
As of June 30, 2021 the bank’s paid up capital has reached 2.75 billion birr which was 1.8 billion birr on June 30, 2020.
Lion insurance secures stepwise success
Lion Insurance Company registered another success on its operation in the last financial year.
The insurance company has closed the 2020/21 financial year with over 395 million birr in total premium income up over nine million birr compared with the preceding year that ended on June 30, 2020.
The annual report of Lion Insurance stated that the main reason for such increase is related to the strenuous effort of the work units particularly branches and the support of the management and the board.
It added that in relation to the growth in premium, the net earned premium decreased by 3.7 million birr or 1.2 percent to 306.3 million birr from 310 million birr in the previous year same period.
The production portfolio was topped by the motor class of business as usual by taking 59.1 percent of the gross written premium. The remaining balance of 40.9 percent was accounted for not motor class of business while liability class of business contributed 9.1 percent from non-motor classes followed by pecuniary by 8.3 percent.
During the reported financial year, the claims performance has shown that the amount of gross claims paid was 173 million birr, while net claims uncured was 188 million birr which increased by 1.9 percent compared with the year ended on June 30, 2020.
In the year under review, the company loss ratio was 61 percent which was 59.5 percent a year ago. As usual on the insurance sector in the country the motor loss ratio stood at the top by taking 60.3 percent that increased by 5.3 percent compared with the preceding year.
The technical provision for the year has also increased by over 44 million birr and stood at 475 million birr.
On its operation for the 2020/21 financial year, Lion’s underwriting result showed a corporate surplus of 119 million birr, while it has dropped by about four percent compared with the preceding year.
“The main reason for the decrement of underwriting result compared with the same period of last year was that claims incurred has increased by 3.5 million birr due to high increment in outstanding claims provision by 29.5 million birr for new bonds claims and other class of business,” Lion Insurance elaborated on its report.
It added that on the basis of consolidated revenue account, with the exception of liability and pecuniary classes of businesses all have registered underwriting surplus.
For the year the company has managed to earn 59.1 million birr profit before tax that has increased by almost 11 percent compared with the same period of last year.
The total comprehensive income for the year stood at 58.9 million birr after tax deduction.
As of June 30, 2021 Lion Insurance’s total asset has climbed by over 16 percent and stood at 979 million birr, “this shows that the company is becoming more dependable to its stakeholders in the market.”
The company that was established by 16 million birr paid up capital in the Ethiopian millennium has now reached at 166.2 million birr with 12 percent increment compared with the amount at the end of June 2020.
