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Amhara Bank organizers signal establishment of Amhara Insurance

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Initiated by the success of Amhara Bank, the market organizers of the bank have signaled to establish Amara insurance as Capital has learnt.
According to Melaku Fenta, Chairperson of the Organizing Committee of the Bank, the organizers of the bank are working to come up with Amhara Insurance.
“The organizers are working to fulfill the requirements of the National bank and required licenses of which is soon to be guaranteed,” Melaku stated.
After setting the record for an initial paid up capital for a new entrant bank in the Ethiopian banking industry Amhara Bank has stopped selling its shares after a year of subscription period.
The bank said it has subscribed capital of 8.1 billion birr and of these 6 billion birr were paid in full.
The bank said it had sold 1.7 billion birr worth of shares within one month period between October 29 and November 29 alone.
“This indicates that there is still a demand for shares, but the sale ended on November 29,”said Melaku on a press conference.

(Photo: Anteneh Aklilu)

Apart from the record it registered in terms of the paid-up capital, the bank has a large number of shareholders. The bank says it has 185,000 shareholders, while this number of shareholders is challenging to hold the founding general assembly at one place.
Hence, the Bank is resorting to delegation attendance in which multiple shareholders can delegate their respective representatives to attend and vote on their behalf.
He said everyone could not attend the first general assembly of all shareholders due to the current situation of corona virus in Ethiopia.
According to the bank organizers, so far 75,000 shareholders have given power of attorney to be represented for the general assembly, while it is not enough to fill the quorum.
Melaku also said that to get ample delegation the power of attorney process has been extended until December 24, 2020 and called the shareholders to visit relevant documents registration offices to finalize the process.
According to Melaku, the financial institution has not been able to meet the quorum in accordance with the commercial law and the proclamation of the National Bank of Ethiopia (NBE), a supervisory body of financial institutions.
Currently, there are 19 banks in Ethiopia including two public banks. According to the information obtained from NBE about 20 new banks both conventional and interest free are on the way to join the market.

Fighting gender based violence through FBOs

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A panel discussion jointly organized with the Norwegian Church Aid and UNFPA on December 8 deliberated on the unique role of faith-based organizations (FBOs) in the fight against gender-based violence and harmful practices. The panel discussion which engaged FBOs from different religious denominations was organized in connection with the 16 Days of Activism against Gender-Based Violence.
Speaking on the event, Sarah Masale, Deputy Representative of UNFPA, said through a programme it is supporting on preventing and responding to sexual and gender-based violence, UNFPA has been engaged in a successful effort to increase the understanding of religious leaders on gender-based violence, its causes and consequences. She noted that this has been demonstrated through the commitment and engagement of FBOs in integrating GBV issues in their work and institutionalizing the response in their various community interventions.
UNFPA through a partnership with the Norwegian Church Aids that spanned 10 years has also been building the capacity of FBOs at national and regional levels to increase awareness on GBV and harmful practice and the consequences for women, girls and families using their structures to facilitate dialogue at various levels. Through joint statements that have been issued by religious leaders at national and regional levels, religious leaders from different denominations have condemned GBV and harmful practices. They have committed to teach moral values to prevent GBV in their religious teachings and exert efforts to bring about change, agreeing to support and rehabilitate survivors of GBV and work closely with law enforcement bodies to bring about justice.
The panelists reiterated their commitment and determination to continue working in their respective denominations to contribute in the fight against gender-based violence and harmful practices.
Meanwhile a short video depicting the engagement of faith-based organizations in the prevention and management of gender-based violence produced jointly by UNFPA and the Norwegian Church Aid was screened during the event.

The cause of Telecommunications cut in Tigray explained

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Ethio-telecom announced that all telecom lines to the Mekelle core site in Tigray have been severed.
According to Frehiwot, the telecom infrastructure lines linking Mekelle to Wukro, Ab’ala, AbiyAdi, Maichew-Kurkuftu, Maichew-Mehoni, as well as Shire and Shiraro have been cut.
Footage has been released by Ethio telecom depicting what looks like armed forces pushing themselves into the compound of the company’s office in Mekelle, on November 4, 2020. In the footage, personnel of Ethio telecom are forced out, and it further shows armed militia turning off the power distribution sources.
Footage from the CCTV, which was functional only until November 4, was shared by the CEO at a press conference on Thursday December 10, at Skylight Hotel. The findings came after a physical examination of the core site following the federal government resuming control of Mekelle, according to the CEO.
According to the CEO, a team of experts from Ethio-telecom travelled to Mekelle following the Military’s control of the city. She noted that prior efforts to identify the causes of the total blackout of telecom services in Tigray region since November 4 were futile as all means of verification failed to direct the experts towards successfully troubleshooting problems.
For instance, Frehiwot explained, experts who travelled to Mekelle managed to locate cuts 46 kilometers from Wukro but they could not tell whether there are other places where the lines were severed further than that distance.
She added that this was done intentionally by perpetrators who wanted to disrupt the telecom services in the region to launch an attack on the Northern Command of the National Defense Forces located in Tigray.
The CEO stated that the Mekelle and Shire core sites remain undamaged, except for the damaged lines connecting these sites to the Base Transceiver Stations (BTS) that supply end user networks.
After learning that the network had been disrupted in Tigray through an automated SMS notification at 12:37 am on the morning of November 4, 2020, she outlined experts and managers of Ethio-telecom communicated and gathered at their HQ at 03:07 am to troubleshoot and restore the services. But they could not access the Mekelle Core Site as well as its employees who could have communicated to them through satellite phones at normal times, said Frehiwot.
“Experts at the Core Site would notify the national operation center whenever such problems happen,” she said.
It was in the subsequent messages from the government that ethio telecom learned of the war that broke out in Tigray following an attack by the Tigray Special Forces on the Northern Command.
She also revealed that within the first 14 days since the war broke out, 39.8 billion cyber-attacks were attempted on various government institutions and broadcast media houses.
The cyber-attacks were Disrupted Denial of Service (DDOS) and unauthorized access directed towards government systems and sites, educational systems and sites, Ethio telecom systems and infrastructure, broadcasting media systems and sites as well as financial systems and sites.

Hibret Bank’s earnings per share drops

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Hibret Bank earnings per share drops by a quarter percentage, while the gross profit surges by 15 percent.
The annual performance of Hibret Bank for 2019/20 financial year indicated that the company has amassed close to 1.13 billion birr gross profit before tax and other deductions. This is an increment of over 15 percent compared with the 2018/19 performance that was 980 million birr.

(Photo: Anteneh Aklilu)

The annual report indicated that the financial firm profit after tax stood at 893 million birr, which was 752 million birr in the 2018/19 financial year.
Meanwhile as the company profit shows significant growth, the earning per share has dropped by about 24 percent compared with the preceding year.
The report indicated that the earning per share for the 2019/20 financial year was 29.79 per 100 birr share value that was 39.19 birr in the 2018/19 financial year.
In the stated period, the bank’s expense has also shown significant increment due to high interest fee and personal expense that is mainly salary and benefit of staff.
According to the annual report the total expense of the bank has reached 3.78 billion birr with an increment of 33 percent compared with the preceding year that was 2.8 billion birr.
From the total expense, the interest expense stood at 1.8 billion birr followed by personal expense of one billion birr and other expenses of 954 million birr. However the total income of the bank reached 4.5 billion birr by an increment of close to 1.1 billion birr with the expansionary expense consuming a significant amount from the total income.
In the year, the bank’s outstanding loans and advances have climbed by 26 percent and stood at almost 27.5 billion birr from 22 billion a year ago.

(Photo: Anteneh Aklilu)

The report shows that the company enabled to mobilize additional 4.8 billion birr of deposit in the 2019/20 financial year. With the stated deposit mobilization growth, the total deposit amount has reached 35 billion birr with 16 percent growth. Its interest free banking wing has achieved the deposit mobilization of 1.23 billion birr that was 878 million birr a year ago.
From the total deposit, the saving deposit has taken the lion share with over 18 billion birr followed by demand and time deposit, which have 8.5 billion birr and 8 billion birr respectively.
In the ended period, the bank asset has reached 43 billion birr with 20 percent growth, while the paid up capital has reached at 3.2 billion birr in the year.