The European Union (EU) provides rehabilitation support for conflict affected social facilities.
During an event held on Thursday November 10, the EU signed a total of 38 million Euros in agreement to support conflict-affected health and education sectors in Amhara, Tigray, Afar, Oromia and SNNPR regions.
The rehabilitation of Health facilities will be implemented through the Ministry of Health (MoH) and UNICEF while the education sector is expected to be carried out by Plan International.
Ambassador Roland Kobia, Head of the Delegation of EU to Ethiopia, signed a 31.5 million euro grant on implementation agreements for the health sector with UNICEF Representative in Ethiopia Gianfranco Rotigliano presided by Dereje Duguma (MD), State Minister of Health.
The EU Ambassador also signed a 6.5 million euro fund with Mudasser Hussain, Country Director of Plan International, for the education facilities redevelopment.
EU anchors health, education support through 38 million euro funding
Federation of Africa Engineers Associations to set up office in Addis
The Federation of Africa Engineers Associations (FAEO) plans to set up an office in Ethiopia as part of its foothold expansion in Africa.
The 8th edition of UNESCO Africa Engineering Week (AEW) and Conference kicked off in Addis Ababa from November 7 to 11, 2022 at the Ethiopian Science Museum.
“From the resolution that we proposed, the HQ of the organization wants to have a liaison office, for program coordination for infrastructure development. We have a lot of inter-regional projects in water supply, energy and roads. Thus we need such an office so as to participate at the policy level and in the framework design of inter-regional projects. Similarly, this office is critically placed in an area to best access the market so as to be part of the development framework implantation in the region,” said Eng. Kazawadi Papias, president elect of FAEO.
Speaking on the issue, Yonas Ayalew, president of the Ethiopian Association of Civil Engineers (EACE) explained that his association is taking the mandate to organize and communicate with the AU and UNESCO for the office facilitation.
Hosted by the EACE in collaboration with the FAEO, WFEO and UNESCO under the theme: “Accelerating Sustainable Infrastructure Development in Africa Together,” the conference was attended by President Sahle-Work Zewde, the Minister of Finance, Ahmed Shide, the Minister of Defense, Abreham Belay, the Minister of Irrigation and Lowland Areas, Aisha Mohamed in addition to participants from numerous countries who are engaged in various fields of engineering including academicians, students, engineering consultancy, industry players and also international partners.
The gathering served as a platform for experience sharing and network creation with local industries’ contractors and consultants.
The AEW is said to play a key role in realizing the African Union’s 2063 goals which focuses on energy sources, construction, information technology infrastructure, transportation, water and sewage disposal, and cooperation and finance issues through streamlined technology.
Infrastructure is crucial for facilitating economic development and a better quality of life. This has been well recognized in both the AU’s Agenda 2063 goals and the UN’s Sustainable Development Goals (SDG’s). Whilst Goal 10 of the AU Agenda 2063 states “World class infrastructure crises cross Africa”, SDG Goal 9 is “Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.”
The conference was thus purposed to examine how the development of such infrastructure can be undertaken in a sustainable manner to help raise living standards, assist in the exploitation of our natural resources, improve health, and industrialize.
FAEO which consists of members from many African countries is a non-governmental organization which represents the interests of all engineering practitioners in Africa, based out of Nigeria.
During the event, Prime Minister Abiy Ahmed was also honored for his contribution in changing and developing the construction sector through enhancing participation of local construction companies.
As Yonas indicated, 90 percent of construction in Ethiopia is built by Ethiopian engineers.
UNIC sets to expand its capital to grip the insurance market
United Insurance Company (UNIC) approves to expand its capital by two folds from the current half a billion birr. In similar alignments, the insurer has also agreed to include new potential investors in getting the firm’s stake.
At the 28th general assembly and 13th extraordinary meeting held on November 10 at Sheraton Addis, the board of directors stated that capital increment was crucial for the company’s future growth and competitiveness.
The board stated that premium earnings of the company are registering growths which similarly expanded the reinsurance expense. The board underlined that if the capital of the company was to be proportionate with the premium it would consequently reduce the expenses that goes to reinsurances.
It was also highlighted that the company’s capital should be in consideration of the reduction of the birr value against major hard currencies.
“Capital increment is vital in constructing additional buildings on the plots of land that the company owns, and in possessing additional plots of land in the capital to undertake further investments in other sectors,” stated Tsigereda Tesfaye, Vice Chairperson of UNIC Board.
She stated that the upcoming stiff competition in connection with the opening up of the financial sector makes capital increment a necessity, “Strong capital positioning gives the company an advantageous edge in facing new incidents like mergers or being partnered with potential foreign players.”
As per the agreement, out of the additional one billion birr capital, 850 million birr will be bought by current shareholders and will be fully paid in three years time. The remainder however, will be sold to new potential shareholders and UNIC’s senior staffs.
Based on this, 64 staffs will acquire 50,000 birr worth of shares each which total 3.2 million birr.
New potential customers that are 23 in total are said to take the remaining amount at 30 percent premium.
Most of the selected potential shareholders are UNIC’s major customers.
The new share holders are expected to settle the total sum within a period of four years.
In the 2021/22 financial year, UN
IC attained massive growth in its operation.
According to the annual reporter, the company was able to amass a gross written premium of 954 million birr which is an expansion of 30.4 percent when compared to the preceding year. From the stated amount, almost 861 million birr was secured from general insurance while life insurance’s contribution was 93 million birr.
Even though all classes of business recorded growth during the period, the aviation class of business increment was extraordinary registering growths of 908 percent.
According to the annual report, motor insurance continued to constitute the upper position with regards to premium portfolio with a share of 57 percent, with slight reductions when compared to 59 percent of shares in the financial year of June 2021.
In the past couple of years, the motor class of business share has declined which the insurer appreciated. “The decreasing trend in motor portfolio is encouraging and consistent with the company’s strategy of maintaining a healthy balance between the various classes of business considering their relevant contributions to the company’s underwriting result,” UNIC’s annual report read.
The life insurance business has also expanded by 30.5 percent with regards to premium earnings.
In the year, the company’s net income reached 427 million birr up from 352.5 million birr, from a year back.
The underwriting profit also increased by 17 percent to stand at 247.8 million birr from 212 million birr of the previous reporting year.
Similarly, the insurer’s profit before tax stood at 206.5 million birr with increments of 21.5 percent from the preceding year; while the profit after tax grew by about 25 percent to reach 181.5 million birr from 145 million birr.
According to the annual report, the earnings per share showed an increment of 17 percent.
The company assets now stand close to 2.2 billion birr which is a 19.2 percentage jump from the previous year while the liability for the reporting year was 1.2 billion birr which makes UNIC’s total equity stand at 924 million birr.
Zemen plans to bulge its capital as it registers yet another successful year
Zemen Bank, a top tier performer in international banking, inclines to triple its capital as the financial firm registers massive success in its activities.
Despite being a relatively new entrant in comparison to its counterpart who set up shop in mid 1990s, Zemen has gone on to have an exponential growth in the market as one of the major players in the sector.
In its latest general assembly held on Saturday November 5, shareholders of the bank agreed to step up the bank’s capital to reach 15 billion birr within the coming five years time from the current five billion birr subscribed capital and paid up capital of over 3.6 billion birr.
In the 2021/22 financial year that was wrapped up on June 30, the bank surpassed the two billion birr profit mark for the first time.
According to Ermias Eshetu, Chairperson of Board of Directors, during the concluded financial period, Zemen Bank earned a gross profit of 2.2 billion birr, “which is a 59.8 percent increase when compared to the same period of last year this puts Zemen in the seventh position when ranking the industry players with this parameter.”
In the year, deposits grew by 41.5 percent or 7.9 billion birr when compared to the year that ended on June 30, 2021 to reach 27 billion birr.
“The success in deposit mobilization was championed through a moderate branch network expansion,” the bank stated on its annual report.
In a single year, the bank attracted about 32,000 new account holders, who came up with almost five billion birr in savings boosting the number of customers in terms of account holders to about 139,000.
Similarly, the loan and advances stretched to 21.1 billion birr with increments of 50.6 percent when compared to 14 billion birr at the end of the preceding year. In terms of share, the industry sector led by 23 percent followed by domestic trade and service and export which took 19.5 and 19.1 percent of share on loan and advance disbursement respectively.
“The bank’s asset quality was high after recording a 1.5 percent non performing loans ratio that is below the regulatory requirement of 5 percent and last year’s 2.25 percent,” Dereje Zebene, President of the bank said.
Regarding foreign currency mobilization the bank has surpassed half a billion dollars generation in the year. This makes the bank to continue on its strong position as one of the leaders in foreign currency generation throughout the banking system.
Zemen is one of the major partners for main source of export earning businesses like investments on industry and horticulture sector besides being one of the major allies for FDI.
The bank’s asset for the year has attained an increment of 39.6 percent to reach 35.1 billion birr, while the liability has also climbed to 39.6 percent to stand at 26 billion birr as of June 30.
The annual report indicated that the total capital of Zemen has expanded to 39.5 percent to cap at 6.3 billion birr.
“The capital adequacy of the bank stood at 26.4 percent, which is significantly higher than the minimum regulatory requirement of eight percent showing that the bank is well capitalized to withstand any external shock,” the annual report elaborated.
Similarly the bank’s total paid up capital has increased by one third in a single year’s time to attain 3.65 billion birr.
According to the annual report, the bank revenue for the reported period has climbed by 43.4 percent now standing at 4.1 billion birr, while its expenditure has increased by a third to 2.1 billion birr.
Regarding profit, in the reported period, the bank has secured a profit of about 1.5 billion birr after tax that increased by 55 percent when compared with the preceding year making the earnings per share to stand at 45.5 percent.
