Bank of Abyssinia (BoA) has registered massive profits, while its expenses have surged by 1.3 billion birr in the ended financial year.
The bank that has been in operation for the past 25 years has stated that its revenue for the 2019/20 financial year boosted to about 5.7 billion birr with one third increment compared with the 2018/19 financial year.
In its report that was disclosed on the general assembly held on Thursday November 19, the revenue shows an additional 1.4 billion birr earning compared with the preceding year. The expense has also skyrocketed by 1.33 billion birr, which is a 40.6 percent increment compared with the 2018/19 financial year expense.
In the reported year, the bank’s total expense has been almost 4.6 billion birr. “The interest fee that follows the expansion of deposit and depositors, salary and benefit of staffs, administrational cost including rent and costs on technology development are the major reasons for spiking the expense,” the Bank of Abyssinia said.
From the total expense, the salary and benefits of staff and interest fee took the lion’s share of 39.8 and 38.4 percent respectively. Regarding administration and rent expense the bank that opened 166 new branches in the 2019/20 financial year has allocated huge amount of cost for rent and furnishing of the new branches.
The bank has managed to double the number of depositors in the ended financial year that reached at 2.6 million with 103 percent increment.
The total deposited in the stated period has also surged to 47.6 billion birr by an incline of 48 percent from the preceding year. In the year, additional 15.5 billion birr has been mobilized as saving that have additional 1.2 billion birr compared with the projection.
The bank loan and advance has also climbed by more than half compared with the 2018/19 financial year. In the 2019/20 financial year the loan and advance has reached to more than 37 billion birr with 57 percent increment compared with the preceding year.
In the year, the bank has generated USD 400 million with 17 percent increment, while it was less by USD 104 million compared with the projection. In the stated period, BoA had expected to generate more than half a billion dollar.
In the reported financial year, the company’s gross profit before tax stood at more than one billion birr with six percent increment compared with the preceding year.
The gross profit after tax reached 853 million birr with an increment of 76 million birr compared to the 2018/19 financial year.
The earnings per share for the year have stood at 7.2 birr which was 7.23 a year ago.
The financial firm’s total capital has reached 5.68 billion birr with 14.7 percent increment, while the paid up capital increased by 12 percent and stood at 3.15 billion birr.
The bank asset has reached close to 57 billion birr a hike of 45 percent compared with the 2018/19 performance.
BoA ascends in profit despite surge in expenses
Ethiopia ranked 40th from 52 Africa countries on the Girl-Friendliness Index
New report by the African Child Policy Forum (ACPF) on Africa and women suggests African countries to create girl-friendly nations through sustainable political commitment reflected in coordinated action that brings together enabling comprehensive legal and policy frameworks, adequate budgeting, and effective implementation.
Ensuring the wellbeing of all girls, particularly the most vulnerable, requires strong commitment and coordinated action to address these systematic barriers since it is evident that girls in Africa face intertwined legal, social, economic, cultural, attitudinal and administrative challenges that hinder the enjoyment of their rights. African girls are being robbed of their future and condemned to a lifetime of discrimination and inequality, according to an alarming report which ranks 52 African countries according to how ‘girl-friendly’ they are.
“To be a girl in Africa frequently means being denied education; getting married too young; enduring sexual, physical and emotional abuse at home, work and school; being barred from owning and inheriting property; and being last in the queue when it comes to state spending on health and Covid 19 make things worse,” says the authors.
“African girls have endured harmful cultural beliefs, patriarchal gender attitudes and discriminatory laws, policies and practices for far too long,” said Dr. Joan Nyanyuki, ACPF’s Executive Director.
The report finds that girls living in Africa today are more likely to be victims of trafficking, sexual abuse and labor exploitation; more likely to get married much younger and experience FGM than girls anywhere else; discriminated against by laws relating to marriage and inheritance; and likely to be poorer than boys.
In addition, they are at higher risk of mental health problems; more likely to be excluded from healthcare; and denied a decent education and more likely to drop out of school.
ACPF’s unique Girl-Friendliness Index (GFI) shows that African governments are increasingly becoming more girl-friendly and that some African governments take girls’ rights and well being seriously but many do not.
The GFI rates Mauritius as the most girl-friendly country in Africa, with Tunisia, South Africa, Seychelles, Algeria, Cape Verde and Namibia also in the top category. Bottom of the table comes South Sudan, with Chad, Eritrea, Democratic Republic of Congo, Niger, Central African Republic and Comoros all rated as least child-friendly and Ethiopia ranked 40th from 52 Africa countries on how friendly they are to women and girls.
“Without determined and targeted action, African girls will be left behind as we step up efforts to achieve Africa’s Agenda 2063 and most specifically Africa’s Agenda for Children 2040,” said Dr. Joan Nyanyuki.
“This important report acknowledges the progress made by some African governments towards protecting and promoting girls’ rights and wellbeing, but it also shows that much more needs to be done, especially in this time of the Covid-19 pandemic,” she expounded.
The report calls for action in ten priority areas including Develop girl-friendly laws and policies and repeal discriminatory provisions, withdraw reservations to regional and international treaties on the rights of girls, Invest in girls’ education at all levels, Invest in girls’ health and nutrition. To achieve the desired results, these actions need to be undertaken with the active involvement of relevant stakeholders including the private sector, civil society organizations and girls themselves.
Africa’s governance performance declines for the first time in a decade: 2020 Ibrahim Index
The 2020 Ibrahim Index of African Governance (IIAG) launched by the Mo Ibrahim Foundation, highlights a decline in African governance performance for the first time since 2010.
The 2019 African average score for Overall Governance falls by -0.2 points below that of 2018, registering the first year-on-year score deterioration since 2010. This recent decline is triggered by worsening performance in three of the four IIAG categories: Participation, Rights & Inclusion, Security & Rule of Law and Human Development.
In fact, progress had already been slowing down since 2015. Over 2015-2019, performance slackened in both Human Development and Foundations for Economic Opportunity, while deterioration continued in both Security & Rule of Law and Participation, Rights & Inclusion, even worsening for the latter.
However, over the decade, overall governance performance has slightly progressed, and in 2019, 61.2% of Africa’s population lives in a country where Overall Governance is better than in 2010.
The 2020 IIAG is the most comprehensive assessment of governance performance in 54 African countries. It tracks Africa’s trajectory across four main categories: Security & Rule of Law; Participation, Rights & Inclusion; Foundations for Economic Opportunity; and Human Development. The new IIAG incorporates three significant upgrades: an expanded governance scope, including new areas such as environment and equality; strengthened indicators, thanks to better data availability; and a new section fully dedicated to Africa’s Citizens’ Voices.
Progress achieved over the last decade has mainly been driven by improvements in economic opportunities and human development. Foundations for Economic Opportunity (+4.1) and Human Development (+3.0) have made good progress, primarily led by improvements in the sub-categories Infrastructure and Health, complemented by advances in Sustainable Environment.
This is threatened, however, by an increasingly precarious security situation and concerning erosion in rights as well as civic and democratic space. Over the last decade, both Participation, Rights & Inclusion (-1.4) and Security & Rule of Law (-0.7) have registered worrying declines.
Over the past decade, 20 countries, home to 41.9% of Africa’s population, while achieving progress in Human Development and Foundations for Economic Opportunity, have at the same time declined in both Security & Rule of Law and Participation, Rights & Inclusion.
Only eight countries manage to improve in all four categories over the decade: Angola, Chad, Côte d’Ivoire, Ethiopia, Madagascar, Seychelles, Sudan and Togo.
The 2020 IIAG provides a picture of the continent before it was hit by COVID-19. In terms of Participation, Rights & Inclusion, progress was slowing long before the pandemic, which only worsens the existing negative trajectory. Conversely, economic opportunity was set on a positive course of sustained progress, and the impact of COVID-19 is now threatening this hard-won achievement.
In 2019, new analysis of the Citizens’ Voices section in the IIAG reveals that Public Perception of Overall Governance registers the lowest score over the decade, with the pace of deterioration nearly doubling within the last five years.
The strongest correlations of Overall Governance performances are found with the sub-categories Rule of Law & Justice and Inclusion & Equality. The indicators showing the strongest relationships with high overall governance scores span all four IIAG categories, underlining the importance of a balanced approach to governance. The growing imbalance between the various governance dimensions outlined above is likely to threaten overall governance performance.
Revenue targets surpassed in the first quarter fiscal year
The Ministry of Revenue announced it has collected more than 107 billion birr in the first four months of the current fiscal year 2020/21.
From domestic tax, foreign trade tax and lottery sales in the first four month collected amounts totaling, 75 billion, 36.4 billion and 83.7 million birr respectively bringing the subtotal to about 107.6 billion birr. Overall, the performance is 103 percent of the initial projected plan and an increase of 19 percent or 17 billion birr in comparison to the same period last year.
The Ministry attributed the improved performance in securing revenues to the high caliber of workers at the Ministry, a positive relationship between the leadership and employees, as well as an improved culture among taxpayers on willingness to come forward to pay their taxes.
Smuggling and contraband control are one of the activities carried out to enforce the law. Revenue as a result of controlling smuggling is one of the main sources of revenue that in this fiscal quarter year amounted to 1.08 billion birr from federal and state security forces. This registered 121.8 percent of the initial projected plan and resulted to a 252.8 million Birr increase as compared to the same period last year. Moreover, the Customs Commission was able to attain 11.7 billon birr, through other revenue outlets.
On briefing the performance to journalist on Wednesday, Laqe Ayalew the Minister of Revenue, he said that more than 3.9 billion birr has been transferred to the states in the past four months, according to the House of Federation.
“Goodwill of tax payers, committed leadership, improved tax collecting system, strong follow up and support, and enhanced rule of law upholding capacity have contributed to the achievement,” he added.
“During the first four months of the program, additional branches were opened not only in terms of the amount of money paid by the taxpayers, but also in terms of additional requirements and there has been taxpayers’ recognition as well,” he expounded.
Recognizing trustworthy tax payers and taking strict measures against fraudsters have played a significant role in obtaining the result, Laqe noted. The Ministry said around 2625 new businesses started to pay taxes during this period.
However, much is left to be done in the remaining 8 months to secure the planned 290 billion Birr and hopefully surpass it.
The Minister lauded the selfless commitment of the employees in the 124 branches across the country and members of the Ethiopian National Defense Force, Federal Police, and regional security forces in combating contraband.
The overall performance shows that the ministry is on target to achieve its plan to garner 290 billion birr revenue in the current 2020/2021 fiscal year.
