The Coalition for Epidemic Preparedness Innovations (CEPI) and the African Union Commission have announced the signing of an memorandum of understanding, which aims to strengthen ties between the organisations and the Africa CDC a specialised institution of the African Union responsible for the prevention and control of diseases in Africa to enhance vaccine R&D and manufacturing in Africa.
This collaboration forms a major part of CEPI’s longer term epidemic and pandemic strategy, announced in March, 2021. As part of this strategy, CEPI aims to work with low-income and middle-income countries to develop the infrastructure and expertise to undertake the epidemiological and clinical studies needed to advance vaccine development, support technology transfer, and develop national and regional manufacturing capacity that will enable these countries to take full ownership of their national health security.
CEPI, AU join forces to boost African vaccine R&D and manufacturing
The swing of paid up capital over the years
In less than three decade’s time, the National Bank of Ethiopia (NBE) has introduced the fourth minimum paid-up capital for the establishment of banks. Four banks have already met a new paid up capital requirement of five billion birr. Banks that are under formation are also asked to finalize their process in the coming six months to get a license.
When the banking business was opened for the private players under the proclamation for ‘providing the licensing and supervision of banking business’ that was issued on January 31, 1994 and that was followed by the directive that came in to force on May 15, 1994, there were no set minimum paid up capital.
While after the formation of Awash Bank, which started operation early 1995, NBE started imposing specific amounts of minimum capital for the establishment of banks. On its first directive, the requirement was 10 million birr minimum paid up capital and the amount was implemented until June 1999 with 7.5 fold increase. Besides Awash five more private banks, Dashen, Abyssinia, Wegagen, Hibret and Nib banks entered the banking business up until 1999.
Since 1999, the banking business has got more than ten banks, despite the revised directive making the startup capital to 75 million birr which was to be fully paid. The late entrants in the form of Debub Global and Enat banks that opened doors in 2012 and 2013 respectively experienced rise in the paid up capital threshold since as of Septem
ber 2011 NBE raised the minimum paid up capital by almost 6.7 folds to half a billion birr to be fulfilled by June 2016.
However, since then the market did not witness any new banks until recently. The aspiration of forming new banks resurfaced when the political reform was introduced bringing with it massive changes in the economy in general and in the banking industry in particular, for example like opening the sector for interest free banking and to the diaspora.
Early this week after a decade of the third revision of minimum capital and within 27 years for the fourth time, NBE has set five billion birr with tenfold increment from the preceding minimum amount.
Meanwhile, currently over 18 are under formation or on last stage to commence the business.
So far two interest free banks, Zamzam and Hijra and Goh Betoch banks have secured their license from NBE to start their business, while Ahadu and Amhara are on the process to get the green light.
Similarly, dozen other new coming banks in different forms are mobilizing shares. While experts predict that some of the under the process of share subscription may halt their activity or come with cooperation similar to other under formation banks. They reminded that before the third amendment in 2011, several organizers where under process to commence share mobilization to form banks but when the capital increased to 500 million birr most of them suspended their activity.
The revised NBE directive, that is, the ‘minimum capital requirement for banks directive no. SBB/78/2021’that entered into force as of April 12, stated that existing banks shall raise their paid up capital to five billion birr in five years’ time until June 30, 2026. It ordered banks to come up with an action plan for capital increase within 30 days.
While the under formation banks are required to comply with the new requirement within seven years after commencement of banking operation.
It added that banks in the process of share subscription, which succeeds to collect 500 million birr from founding shareholders, are asked to hold subscribers meeting and submit final application to the national bank within a maximum of six months after the effective date of the directive and will be permitted to get banking business license within a minimum of 500 million birr paid up capital. “However, such bank shall be required to comply with the five billion birr capital within seven years after they started operation.”
So far as per the NBE first quarter bulletin that reviewed the economy until September 30, 2020; Awash, Dashen, and Nib banks have already surpass the minimum paid up capital requirement set by NBE this week.
The NBE information indicated that as of September 30, Awash Bank’s paid up capital was 8.38 billion birr that was then followed by Dashen and Nib with 5.8 billion birr and 5.23 billion birr respectively.
The newly formed bank Amhara, which is yet to get a license from NBE, has a paid up capital of 6 billion birr placing it in second place after Awash on the paid up capital amount. Meanwhile, majority of the established banks including Awash and Dashen have already approved the capital increment earlier before the latest directive.
TeleBirr to launch in the coming weeks
Ethio-Telecom, the giant telecom service provider in the country is aggressively working to protect its market share plans and is about to start its mobile money service called ‘Tele Birr’ in the coming two weeks.
Tele birr is an innovative mobile money solution for Ethio telecom customers, the solution allows customers to store, send, receive, transfer and spend money through an electronic account using their mobile phone.
“It is a solution that facilitates the delivery of cashless transaction like payment, money transfer and mobile remittance,” according to Ethio telecom. Tele Birr is expected to give services including; money transfer across all network, payment for goods and services locally and internationally, pay bills for example for school fees, utility bills (water, electricity), DSTV. Moreover Tele Birr will allow users to cash-out, buy prepaid airtime, SMS, voice, data bundles or customer can pay a direct connect account and for other Ethio telecom subscribers, they will be able to make secure online payments.
The service will also allow customers to receive money from diaspora, cash-in, save money, access loan, link bank account to TeleBirr wallet and vice versa and will feature a manage TeleBirr account.
The solution will provide mobile payment services generally to payment services operated under financial regulation to which transactions can be performed from or via a mobile device. Instead of paying with cash, cheque, or credit cards, a consumer can use a mobile device to pay for a wide range of services and digital or hard goods.
The company started the process to launch the service over a year ago by submitting a proposal to the National Bank of Ethiopia (NBE), which approved its application to venture into digital financial services. After getting the consent, Ethio telecom’s management jumped into selecting a platform and in organizing of a project office.
To register for TeleBirr, the customer will visit a TeleBirr Agent outlet / Ethio telecom shop and present a mobile phone with an Ethio telecom SIM card and a valid identification document.
To ensure competitiveness and sustainable growth of the company, Ethio telecom has develop a strategy by considering and reviewing relevant government policies, international best practices, and industry trends to increase its infrastructure and system capacity enhancement development and expansion aiming to boost network coverage capacity and quality service.
In a related development on April 15, 2021 Ethio telecom launched its 4G LTE Service in South South West Region for the fourth time across the country.
The 4G LTE Services in South South West Region covers 67 sites in the region from 641 sites. The expansion has covered towns, Wolaita Sodo, Arba Minch, Hosana, Wolkite, Butajira and Jinka, where high mobile data traffic has been observed. This of course is of great benefit to its 610,000 customers in the region.
“With the high bandwidth and high-speed features of 4G/LTE services, we hope will enable and empower our customers to digitize their services, increase productivity and improve their experiences,” stated the firm’s CEO.
Beside its support to increase financial strength and service advancement of the company as Frehiwot said 4G expansion also support digital inclusion.
Data traffic growth and demand based 4G/LTE expansion in Addis and regional towns is among the major strategic initiatives set out in the three years company strategy.
As Frehiwot Tamiru, CEO of Ethio Telecom stated on the launching ceremony, until the end of the current budget year the company has planned to increase number of 4G network in 103 cities over the country.
“Accordingly, over the next few months, we will be launching similar services in other parts of the country, for which preparation works are underway,” expressed Frehiwot.
Currently, Ethio telecom has 53.7 million customers from which 25 million of them are internet service users.
Ethiopia’s stance on GERD ahead of second filling
Ethiopia reaffirms it would never agree with unfair terms that seek to maintain the hydro hegemony of Egypt and Sudan. Egypt similarly expressed that the second filling causes no harm to its country.
Deputy Prime Minister and Minister of Foreign Affairs (MoFA), Demeke Mekonnen said that neither politicizing nor sabotage should guide policies over the Nile but promoting cooperation, understanding, and integration should be the guiding spirit.
The negotiations over the Grand Ethiopian Renaissance Dam (GERD) provide this opportunity, he said if Egypt and Sudan follow a constructive approach to achieve a win-win outcome within the framework of the ongoing African Union (AU)-led process.
Exerting unnecessary pressure on Ethiopia by intentionally politicizing and internationalizing the matter will not make Ethiopia accept the colonial-era treaty over the Nile River, he said.
The Deputy Prime Minister said Ethiopia would never agree with such unfair terms that seek to maintain the hydro hegemony of Egypt and Sudan.
Demeke made the remarks on Thursday April 15 while delivering an opening speech to an online discussion that was hosted by the Ethiopian Embassy in London organized by MoFA in collaboration with various Ethiopian Missions in Europe.
Attending the discussion, one of GERD negotiating team member, Yilma Seleshi (Prof) said Sudan and Egypt are keen on having a water-sharing agreement than handling the specific cases related to the GERD.
In this regard, he said, Ethiopia is not willing to sign an agreement that will compromise the development endeavors of future generations.
Lemlem Fissaha, member the negotiating team, said what Ethiopia has done in going so far in trying to entertain water-sharing talks, in the absence of international agreement on the use of Nile water is commendable.
Demeke and Seleshi Bekele, Minister of Water, Irrigation and Energy, have also briefed African ambassadors in Addis Ababa on the GERD talks in Kinshasa, DRC.
The two officials stated that the AU led trilateral negotiation is the only viable way to reach a win-win outcome.
The officials added that cooperation and the spirit of African brotherhood are the best option for the management and utilization of the waters of the Nile.
“Attempts of Egypt and Sudan who claim the GERD as a threat to Arab water security (despite being in Africa like every other riparian country and unnecessarily politicizing the matter) is disappointing,”the officials expressed.
Recently, Egypt has come with the statement that the second water filling will not have harm on its water supply.
