The first interest free bank in Ethiopia, Zamzam closed the share sales with a record amount on both paid and subscribed capital in the history of Ethiopia’s financial industry.
As of Friday October 11, the last date for selling shares, the bank sold 1.2 billion birr worth of shares and from this 600 plus million birr is paid.
The bank that commenced the share sales three month ago has surpassed the National Bank of Ethiopia (NBE), supervisory body, minimum paid up capital of half a billion birr by one fifth and stands at over 600 million birr.
Nassir Dino, IT specialist, one of the founders and chairman of the under-formation bank, told Capital that the time frame that they achieved regarding the share sales might be historical like the record collection of the subscription or paid up capital.
He remembered that when they initially tried to form the bank in 2011 the capital collection was a record for the sector but the move was cut by the government at the time.
On Friday June 21, the bank that was the first for interest free banking has offered one billion birr worth of share sales.
The bank had offered one billion birr worth of capital with half to be paid that would meet the requirement of the NBE, but the success is very far from the target.
During a meeting in the Islamic holy month of Ramadan on Wednesday May 22 between the organizing committee members of Zamzam and Central Bank officials, Yinager Dessie, Governor of NBE, allowed Zamzam to undertake the formation process.
The green light came on the same day that PM Abiy Ahmed, who attended the massive Grand Iftar evening organized by the Ethiopian Islamic Affairs Supreme Council, announced that the government would allow interest free banking in the country.
Following the government’s decision, the formation of Zamzam Bank, the under formation first full-fledged interest free banking institution, resurrected. The opening up of the business will be disclosed in the near future Nassir said
The minimum share an individual buys at Zamzam is 50 birr with 1,000 birr each share, while the maximum is limited by NBE that cannot not exceeded 5 percent of the total capital.
Initially Zamzam introduced its activity immediately after the Banking Business Proclamation authorizing the establishment of interest-free banking in 2008, and sealed the formation process by the general assembly held in April 2011 but failed to commence operation after the central bank issued a new directive that push the operation to conventional banks.
Due to that the board directors who meet with shareholders in June 2011 decided to refund the mobilized capital for shareholders based on the interest of the share buyers.
On its share sales the company was able to amass an actual collection of 330 million birr as subscription, which was higher compared with the initial plan to collect quarter of a billion birr. At the time about 6,800 people buy the share that was 20 shares on minimum requirement with 1,000 birr share value.
Zamzam hits record share sale
Djibouti loses central Port figure
The government of Djibouti announced the death of one of its highest public official, emblematic figure of the port community Saad Omar Guelleh General Manager of Port de Djibouti S.A (PDSA) and the younger brother of the President of the Republic of Djibouti, Ismael Omar Guelleh.
Saad passed away on October 7, 2019, while he was receiving medical treatment in Paris, France.
His passing away has provoked a strong collective emotion and an immense feeling of great sorrow.
The late Saad Omar Guelleh was well known among port professionals. “This great government official was essential in the conduct and management of one of our flagship development structures, the Port” reads a statement from the PDSA.
“It is with great sadness that we heard the passing of our staunch supporter, Saad Omar Guelleh, Director General of Port of Djibouti. We would like to convey our deepest and most sincere condolences to the family of Mr. Saad, to our partners of the Port community and to the people of Djibouti,” reads a statement from Ethiopian Shipping and Logistics Services Enterprise.
The late Saad Omar Guelleh was 69 years old. Many of his associates were inspired by him because of his professional dedication, his character and the vast skills he acquired during his long career.
“He never counted the sacrifices that he made to acquire all the knowledge essential to the mastery of work related to his field. He taught himself and was passionate about learning. He went to the North Sea to learn the skills and climbed the ladder of the management of Port to the position of General Manager,” further reads a message from his colleagues.
In a 2017 interview with Capital, Saad said “because our country is strategically located we have been able to rise to the challenge of making the port of Djibouti a regional hub for the Red Sea and Indian Ocean…”
He said that Djibouti will transform its ports into global competitive platforms for international trade and that its vision is to be a center of excellence and performance in regional maritime transport and logistics.
Coffee value increases 55% at ECX
During September’s 20 trading days, the Ethiopia Commodity Exchange (ECX) has traded 2.1 billion birr in commodities. Coffee’s trade value has increased 55 percent compared with the same period last year.
ECX, which has been expanding the types of commodities it trades, announced that 38,500 tons of products were traded on their floor.
ECX traded five types of commodities but the volume of coffee, the historical hard currency earner of Ethiopia, was at the top.
September in Ethiopia is considered to be the end of the harvest season and a transition time into the new harvest season. During September Coffee took the largest share of the market with 56 percent trade volume and 76 percent in trade value as 21,500 tons of coffee were harvested.
The trade volume and value of coffee increased by 47 percent and 55 percent respectively, compared with the same period last year. The average price of coffee has also increased by 2 percent during the month, export coffee trade dominated the market with 76 percent of the volume and the value followed by local and specialty coffees. There were 15,967 tons of unwashed export coffee transacted for 1.18 billion birr.
Soybeans, which are a new commodity at ECX, came in second in terms of volume. In the 20 trading days over 7 thousand tons of soybeans were traded. Green mung beans, which are also new to ECX, were third at 5 thousand tones. The value of soybeans traded in September, came 111.29 million birr, while the Gojjam type had the greatest share at 68 percent in trade volume and value respectively.
The green mung bean was traded at a value of 157.54 million birr during the month, according to ECX’s monthly statement. Compared with the trading in August, it has increased by 160 percent and 170 percent in terms of trade volume and value respectively.
Compared with a similar period last year, sesame, which brings in the second highest amount of hard currency of the commodities traded at EXC, increased in trade volume by 94 percent and in trade value by 141 percent and in price by 19 percent. Almost 4,000 tons of sesame were traded in September; a value of 223.25 million birr.
In the past budget year traders or exporters say illegal traders attempting to obtain hard currency purchase the seeds at a very low rate. They lose money on the international market in order to obtain foreign currency. They then turn around and use that to import other products. The Ministry of Trade has threatened that they will revoke the license of these unethical business people.
In September, 858 tons of white pea beans valued at 20.6 million birr were traded on the ECX floor. White pea beans are the second pulse product transacted there. white pea beans, which is the other pulse traded on the ECX floor
In September a total value of 2.1 billion birr was traded at ECX. October should see new products on the market as it is considered the start of the new harvest season.
Palace Park opens to public
The five billion birr Unity Park was inaugurated in the presence of regional head of governments at a ceremony held at the historical mansion of Atse Minilik II.
The park has been constructed at the ‘Grand Palace’, which is the first settlement as a capital city for Ethiopia in 1880s. The compound initially was established by Queen Taitu Bitul, who initially frequently visited the hot spring that is adjacent to the current Jubilee National Palace. The same place of the Grand Palace located was also called ‘Tulu Finfine’ at the time, according to experts.
The park that will be opened to local and foreign visitors as of tomorrow has six tourist destinations and five of them are available currently, according to Tamrat Haile, leader of the project and the park, which has its own administration.
The Improper palace complex and hall of Minilik is the most tourist attraction location in the compound. Previously, these were unavailable.
The throne house and emperor’s resident will demonstrate Ethiopia’s civilization and the historical standards, according to experts involved in the project.
The Complex consists of the private prayer room of Emperor Menelik II and the Emperor’s watching tower, Emperor Menelik II’s office, Menelik IIʼs bedroom and Reception Room, Etege Taytu Betul’s Bedroom, the Minister of War’s Waiting Room, The Princes’ Bedroom, Council of Ministers and a small banquet hall. The first telephone for the entire country was also installed to this building.
According to Tamrat, the visiting area, which is part of the ‘Grand Palace’ compound, is about 40 hectares most of the area has been left to green space.
Capital learned that the historical palace renovation work has been conducted by Geom Luigi Varnero Impresa Costruzioni, who is well known for Varnero, for the project which took three years starting in 2014. Currently the palace has facilitated to be museum and exhibition centre to show the historical flow of the country and events happened in the compound in the past 130 years.
“For the museum we have gathered historical collections,” Tamrat told media on the visit held on Monday October 7. 
Capital learned over 1, 000 historical items were collected including Minilik’s first automobile.
At the same time with some correctional renovations the project owners used eye witnesses’ interviews, photos and reference books, which scholars have spoken about concerning the compound.
“For the current phase, we mainly engaged in the development of the compound,” the project leader said.
In the greenery project over 6,000 trucks were used to settle the landscape and elevation of the garden, which is the garden for the traditional plantation of Ethiopia called the ‘Traditional Garden’ and other greeneries in the compound. The Traditional Garden has a collection of 45 Ethiopian plants including trees, bushes and garden plants.
One of the six touristic destinations is the regions pavilion that symbolizes nine regions through art and architectural. “In the development of regional location regional administrations have involved and some of them have already delivered symbols that refer them, for instance Afar region has provided traditional equipment to put on its location,” the project leader said.
Artificial cave for black lion, which is Ethiopian endemic, is also one of the six locations at the same time there will be zoo that would be opened for visit in December. “Initially we will start by 46 species 312 animals but their number will be increased as any zoos in the world,” Tamirat said.
The landscape work is mainly undertaken by UAE based Alec Engineering, which is one of the construction and design dominant player in the Gulf Region and Fitout, another company from UAE for interior work also involved on the project. Despite Alec is the lead contractor about 12 contractors including greening and construction has involved and most of them are Ethiopian companies.
The project is undertaken by the grant speculates provided by UAE. The total cost of the project including renovation of the Office of the Prime Minister is about 5 billion birr.
The major part of the project work took only six months, while compound renovation starts earlier.
The mansion of Atse Minilik II is that Atse Hailesilase I invited African leaders for dinner in 1963 following the formation of Organization of African Unity, this indicates how the compound has historical values, Daniel Kibret of the Office of the Prime Minister said. When the hall was constructed, it had a capacity to entertain almost 8000 guests at a time.
On special occasions, the Throne House was also used to welcome nobles and foreign dignitaries. Queen Elizabeth II of British, Charles De Gul of France and Joseph Broz Tito of Yugoslavia were only few of the distinguished world leaders to be received in this Hall during the reign of Emperor Haile Selassie.
During the Dergue regime the Throne House served as a meeting hall for the Dergue Central Committee in which numerous matters were deliberated, including the famous rural land expropriation proclamation and the decision to kill high officials of Emperor Haile Selassie.
There are four ways visitors can pay and they don’t need to use cash. They can send a short text to 6030, online reservations, credit cards and POS. At a time about 1,500 visitors can be in the compound but there is not a limitation to stay at the compound. Pricing is 200 birr (USD 20) regular and 1,000 birr (USD 50) VIP.
