Three months since I joined EZEMA and I can tell you the warmth I felt from everyone was like no other. I want to say thank you to all my well wishers! To all those ‘disruptors’ among us, I say shame on you.
To those wanting to steer Ethiopia’s progress, and help people, I say: Engage!
Politics is not a career for only politicians; it’s not just for those with very little or no real world experience, those who have never had a real job or significant career. Politics is rather for those who can develop and deliver good public policy and good Government. And I can tell you by standing up to be counted, by working together, we can change our communities and our country for the better.
Ladies and gentlemen, we are at an absolutely crucial moment. In the next few weeks the future of our country, the future of Addis Ababa will be decided for decades to come.
In three weeks time, the country will be heading towards a national election. So far, no Opposition has ever posed any threat to EPRDF, now renamed Prosperity, in the national elections. And it is clear that, unless EZEMA transforms itself into an assertive and vigilant opposition party in the weeks and days to come, the coming elections will still be a one-horse race. We’re freaking doomed!
History will record that although EZEMA has tried to set up a resilient party infrastructure on the ground to oppose EPRDF/Prosperity, it has failed to stand up to Prosperity the way most people would have expected it. By and large it (EZEMA) appeared to be “too cozy” for the national good of this country. This coziness has left hundreds of thousands of Ethiopians feeling frustrated, powerless and unrepresented.
In every true democratic dispensation, the government needs to be “threatened” by a strong opposition party that has the potential to take over power – and not the one that merely adds numbers (‘MEDEMER’).
Yes, EZEMA has to change to become a credible opposition. It has been too faint-hearted, while people felt that the stakes are not only high, but even existential. Men and women on the streets say they fear for their life, they see their city, their country going in the “wrong direction”.
In the last three months, I spoke to rallies and meetings across Addis Ababa. There are huge numbers of people who simply want us to fight for the defense and protection of our country and of our city, they want us to fight to end toxic corruption, they want us to fix the city’s housing mess, and save Addis before it’s too late.
As you can see, Addis Ababa is undergoing a transition perhaps no city has ever experienced: Its historically dominant group is being pushed to becoming a political minority. Frankly the public doesn’t understand at what game Prosperity is really playing. It pretends there are no forced displacements aiming at making long-term demographic changes in Addis Ababa. And yet we are daily threatened by those with their narrow ethnic agendas that seek to drive us apart.
Prosperity’s cynical disregard for the truth, its treatment of victims of violence across the country, its reckless evictions of native residents of Addis Ababa, and its divisive language make people feel powerless and threatened.
What kind of unifier is this Prosperity Party?
You probably notice that Prosperity is hanging on by its fingertips, even though major public media, the tax agencies, the bureaucracy, ‘big’ local businesses, all are supporting it.
Yet, let’s look at some of its record since it came to office:
Thousands of innocent killed as a result of violence across the country.
Millions displaced from their homes.
The largest number of youth unemployed ever recorded.
Failure to meet thousands of people’s housing contract obligations.
New condominium building almost stopped. Owner occupation becoming a distant dream.
Part of Oromia in tatters.
Millions of children in poverty.
The highest number of extreme poor.
Systemic corruption bankrupting the country.
But Tigray may be the greatest national policy wreck in Ethiopian history.
The bottom line is that’s not strong and stable.
Finally, let me assure you that whatever Prosperity says, Ethiopia’s long-term future is brighter with EZEMA, for the simple reason that it (EZEMA) is ready. It is ready to openly admit its mistakes and correct them, ready to put peace and justice at the heart of its policy, ready to tackle inequality, ready to give opportunity to young people, dignity and security to older people, ready to invest in our economy and meet the challenges of housing. And ready to build a new and progressive relationship with our neighbors.
We know the task ahead will not be easy. There will be obstacles and barriers along the way. But the party is full of young people with bold ideas to strengthen our society through the 21st century. Full of young people committed to deliver an Ethiopia for the many not just the few.
Dear readers, the time for waiting is over!
We’re Not Going to Kill Prosperity With Kindness!
Seedling Initiative launched
The third round Green Legacy seedling initiative under the motto ‘let’s adorn Ethiopia’ was launched at an event held at the Office of the Prime Minister on Tuesday May 19.
On this year’s initiative six neighboring countries have been included and some of them have already started receiving seedlings to plant inside their borders.
Under the new effort towards Green Africa, one billion tree seedlings will be given for regional countries. Oumer Hussien, Minister of Agriculture, said that for the year including the reserves about 7.7 billion seedlings have been prepared of that over six billion will be planted in Ethiopia.
The seedling portion per countries is as follows; Kenya 386 million, Sudan 316 million, Somalia 129 million, South Sudan 91 million, Eritrea 29 million and nine million for Djibouti.
In Ethiopia, Oromia region is expected to plant 4.5 billion, Amhara 1.6 billion and SNNP 1.36 billion.
According to Oumer, the seedling preparation was handled in 124 stations and the planting will cover 1.9 million hectare of land.
The initiative will cost 900 million birr that’s partly covered by partners and the balance from the government.
Prime Minister Abiy Ahmed said that in the economic estimation it is the investment of six billion birr. He called all citizens to partake on the initiative whether there are differences in different issues.
When the initiative started in 2019 the plan was to seedling four billion trees, while the actual achievement was 4.7 billion that is also 5.9 billion in 2020 rainy season but the plan was five billion seedlings.
The number of people who had participated on the Green Legacy seedling was 20 million, and 23 million in the first and second year respectively.
However, for the current season it is expected that 25 million people will participate on the initiative.
Oumer said that the performance of the past two years’ effort of the seedling was fruitful.
This year edible trees have been included in the seedling line up.
“Taking such kind of greenery initiative in this period makes us lucky since deforestation and desertification is one of the global major challenges,” Demeke Mekonnen, Deputy Prime Minister, said.
On the day, Abiy presented seedling gifts for the federal and regional officials to plant at their home.
EthSwitch and SMFI strike deal on payment solutions
EthSwitch, a national switch, and Somali Microfinance Institution (SMFI) sealed a deal to include SMFI as the first micro financial firm to join EthSwitch as an indirect participant. The national payment solution is also introducing a national payment gateway.
EthSwitch which is the owner of Ethiopay, a domestic card scheme developed for all banks in Ethiopia to issue and acquire payment cards, has been working with all local banks for the last decade, while the coming of SMFI would be a new era for both the microfinance firm and the technology provider.
The statement that EthSwitch issued indicated that the participation enables Somali MFI to make its mobile wallet system interoperable with existing and upcoming payment systems allowing its customers to transfer funds to other financial institutions using their mobile wallet or accounts.
“The participation also enables Somali MFI to let its customers leverage payment acceptance devices deployed by banks and payment system operators across merchant locations,” it added.
So far banks are using the scheme on direct participation.
Yilebes Addis, CEO of EthSwitch, said that the e-payment solution is mainly undertaking three major goals including interoperability between financial firms, creating domestic payment scheme and infrastructure development for the use of financial firms.
“SMFI will benefit from the scheme that its customers shall easily issue cards to use payment terminals on banks and boost their existed mobile wallet service,” Yilebes explained.
Yilebes reminded that his company establishment targets to attain the national digital payments and financial inclusion strategies that banks, MFIs and as per the latest law payment system operators (ATM, POS, gateway, and switch operators) shall use it, “so it will ease the service of financial firms including the regional MFI.”
Khadar Ahmed, General Manager of SMFI, said that the institute is very strong regarding mobile money service and providing huge contribution for the society to ease the financial constrains.
“Switching our service with other financial firms will also expand the operation widely with positive accessibility for clients,” he said, adding, “The outreach for EthSwitch is also another contribution of the new deal.”
Including Somali MFI seven MFIs have bought share on EthSwitch, however, SMFI is the first to get approval from EthSwitch’s board of directors as an indirect participant after fulfilling the necessary requirements.
SMFI has bought the allocated 1035 shares of which 60 percent is paid. Through mobile transfer SMFI is facilitates 200 million birr daily transaction.
The membership also enables the microfinance institution to issue payment cards to its customers, which they can use on all of ATM and POS terminals.
Khadar told Capital that his institution is under preparation to issue cards to use the advantage and provide alternative for customers.
“We are the leader on the number of transaction under mobile money in the country and using cards is also more opportunity on the modern payment system,” he added.
“Under the piloting peer to peer (P2P) the microfinance will benefit more,” Yilebes explained. He explained that P2P is the new scheme which is under pilot stage is enable financial firms to transfer or pay money between each other’s besides the current service of using ATM and POS.
“An individual that have account on bank A shall pay for another person who have account on bank B without further process,” he explains about the new service “we have got positive results under the piloting and fully introduce in the coming financial year.”
For over five years EthSwitch has enabled to manage all ATMs under interoperable, and since last year using POS terminals operated by all banks.
Ethswitch, established in 2011, is a share company fully owned by all banks in Ethiopia. It is established mainly to provide simple, affordable, secured, and efficient e-payment infrastructure services to retail payment service providers, and through them, to end users in Ethiopia; by deploying technology.
Ethswitch is one of the two national switches in Africa that Yilebes says it has enable to cut unnecessary charges that may be occurred if the country uses foreign payment systems for its domestic payment solution.
The CEO explained that over 26.5 million numbers of transactions that have 28 percent increment compared with the preceding year have registered, while ATM cash withdrawal takes the 80 percent.
“POS interoperable has registered significant performance despite being new. In terms of profit it achieved 115 percent compared with the projection,” he added.
The CEO told Capital that it is on process and to some extent has tested to introduce a national and international payment gateway. The new scheme is targeted to facilitate payment through online for ecommerce transaction.
“We will provide a service for online payment gateway service providers not for customer or merchant,” he says “we are under implementation negotiation stage that would be available in the market to the maximum in six months, but if payment gateway licensed companies shall come in the short period we may commence the operation lesser than the given period.”
EthSwitch subscribed capital is 900 million birr. It is expected to handle payment system operators and payment instrument issuers when they are getting a green light from NBE.
So far information indicated that about 12 system operators and four issuers are on the pipeline to be operational as per the NBE directive that was issued recently under the way to financial inclusion and digital payment strategy.
New bank in the horizon following merger
Somali Microfinance Institution (SMFI) jointly with the under formation interest free banking (IFB), filed this week its application to the National Bank of Ethiopia (NBE) to evolve itself to become a bank under the brand name Shebele Bank.
SMFI which was established in January 2011 announced that it has agreed with the under formation IFB that is handled by the Somali community to narrow the gap to access to finance under Sharia law in the region. The moves come as the firms want to move forward to establish a single financial firm.
Khadar Ahmed, General Manager of SMFI, told Capital that they are going to file the application to NBE to allow them to upgrade into a bank as per the directives that was issued recently and under the minimum paid-up capital requirement directive that NBE reviewed couple of weeks ago.
In his recent interview with Capital Mustefe Mohammed, Vice President of Somali region, told Capital the regional administration is working with investors to invest in the region that has massive potential. Since then there were activities to establish banks under the initiative of investors in the region.
“There was a process to form a financial firm called Shebele Bank, while when NBE allowed MFI to grow to banks we had discussed with the founder of Shebele and agreed to work together and establish a single financial firm under the IFB scheme,” Khadar said.
He explained that, in the initial meeting that was held in the capital of Somali region, Jigjiga, NBE had participated in the event. “Since we have developed the required documentation, the corresponding documents will be filed for application and consideration to the NBE,” Khadar remarked.
As per the agreement, the new bank that is the result of SMFI and Shebele will be called by the name of Shebele.
SMFI has already met the requirement of minimum paid up capital of half a billion birr to establish a bank, Khadar says, adding, “Our capital of SMFI is 508 million birr and at the same time we are selling share for the public to amass more.”
SMFI under Sharia compliant has provided financial service in Somali region and other places like Dire Dawa and Addis Ababa city administrations. It has registered extraordinary achievement on mobile banking that is power by Bel Cash.
“We are confident that our hello cash mobile money service is the leading in the country since we have 750,000 users from urban to rural transactions since 2015,” Khadar explained.
As per the deal Bel Cash will transfer the technology and service for the financial firm in the near future.
In a directive issued August last year, NBE has allowed microfinance institutions to upgrade into full-fledged banks. So far Amhara Credit and Saving Institution have upgraded to become a bank under the name of Tsedey Bank.
Under the revised directive of NBE for banks minimum capital requirement that was issued in the second week of April, the newly coming Shebele Bank would fulfill its minimum paid up capital to 5 billion birr in seven years time.
SMFI has reached over one million of the public and of that 80 percent are active clients. The total amount of loan it provided is over 2.2 billion birr.
Under its mobile money service over 200 million birr per day is transacted on its platform. 19,000 point of sales and 42 branches have been managed by its services.
As of April 30, 2021, the total amount of outstanding loan is over 1.8 billion birr.
In a related development Oromia Credit and Saving Share Company will hold its first meeting on Monday May 24, to upgrade the Credit and Saving company to a full-fledged banking service.
