Zemen Bank S.C. is developing new banking products to support small and medium-sized enterprises (SMEs), with a particular focus on women-owned and women-led businesses, as part of its broader efforts to expand access to finance and business services.

The bank has begun providing training to women-led SMEs on financial management, business planning and enterprise growth ahead of the planned rollout of financial support.

Asrat Tadesse, Zemen Bank’s Executive for Retail Banking, said the bank is undertaking preparatory work before extending financial services to women-led SMEs.

“SMEs are looking for affordable loans, collateral-free financing for expansion, access to foreign currency and solutions to other financial challenges,” Asrat said.

He said the bank is working to address the challenges raised by SMEs and will provide training on banking regulations, financial management, market linkages, trade and related laws before launching the planned financial assistance.

Zemen Bank plans to support 150 women-led SMEs during the 2026/27 budget year.

The initiative comes as the bank continues to expand its balance sheet and lending operations. For the fiscal year ended June 30, 2026, Zemen Bank reported a 31.9 percent increase in total assets to 116.5 billion birr and a 15 percent rise in net profit to 6.75 billion birr.

The bank said the financial results were achieved amid tight monetary conditions and regulatory reforms in Ethiopia.

The National Bank of Ethiopia maintained a 15 percent policy interest rate and imposed a 24 percent ceiling on credit growth during the reporting period.

Despite these conditions, Zemen Bank’s total credit portfolio increased by 24.6 percent to 51.7 billion birr.

The bank’s non-performing loan ratio stood at 2.48 percent, below the regulatory ceiling of 5 percent and its internal threshold of 4 percent.

Chief Executive Officer Dereje Zebene said operating income increased to 14.24 billion birr from 12.13 billion birr a year earlier.

Net interest income contributed 6.57 billion birr to the bank’s earnings, while service charges and commissions generated 5.04 billion birr.

Zemen Bank reported gross profit of 9.97 billion birr, representing a 9.7 percent increase, while net profit after tax reached 6.75 billion birr.

The bank recorded a return on average equity of 37.8 percent and a return on average assets of 6.6 percent. Earnings per share reached 539 birr.

Zemen Bank’s paid-up capital increased by 52 percent to 14.29 billion birr, while total capital rose by 40.8 percent to 25.9 billion birr.
Its capital adequacy ratio reached 40 percent, significantly above the regulatory minimum of 8 percent, according to the bank.

Total deposits also increased by 32 percent to 85 billion birr.
The bank said the removal of the mandatory 7 percent minimum deposit interest rate had enabled banks to determine interest rates more in line with market conditions.

Zemen Bank’s planned SME support program comes amid growing demand from Ethiopian businesses for financing, market access and other financial services, particularly among smaller enterprises seeking to expand their operations.

Education stakeholders are calling for a review of Ethiopia’s university admission requirements, arguing that the minimum passing score in the Grade 12 national examination may be limiting access to higher education for students with the potential to succeed academically.

Under the current policy, students must score at least 50 percent on the national examination to qualify for direct university admission. However, Molla Tsegaye, president of Admas University and head of the Association of Ethiopian Private Higher Education and TVET Institutions, says the threshold should be reconsidered to balance academic standards with wider access to higher education.

In an interview with Capital, Molla argued that a single examination should not be the sole measure of a student’s ability to pursue university studies. He called for alternative pathways that would allow students who fall below the required mark to demonstrate their academic readiness through other appropriate assessments.

“Scoring below 50 percent does not mean a student cannot improve or succeed academically in the future,” he said, urging education authorities to assess the long-term implications of the existing admission policy.

Molla proposed lowering the university entrance threshold to 40 percent as a possible alternative to the growing reliance on remedial education programs. He argued that revising the admission criteria could provide students with a more direct route to higher education while reducing dependence on supplementary courses and additional examinations.

Although remedial programs were introduced to help students who failed to meet the required standard, Molla questioned whether continued reliance on them was the most effective use of educational resources. He stressed that any adjustment should be informed by research to safeguard academic quality and account for universities’ capacity.

The debate extends beyond the financial challenges facing private institutions, many of which have experienced declining enrolment. Molla said university admission requirements are a broader national policy issue affecting students, public and private institutions, and the development of Ethiopia’s higher education system.

He recalled that admission cut-off marks were previously influenced partly by institutional capacity and available educational resources. Some students admitted under earlier arrangements despite scoring below today’s threshold subsequently completed undergraduate degrees and progressed to master’s and doctoral programs.

Molla also called for a comprehensive assessment of Ethiopia’s education system, from early childhood education through primary and secondary schooling. Such a review, he said, should examine teaching quality, teacher capacity, classroom conditions and students’ learning opportunities to identify the underlying causes of weak examination results.

The debate comes amid concerns over national exit examination performance at public and private higher education institutions. Molla cited pass rates of approximately 50 percent at public institutions and 15 percent at private institutions, while cautioning against attributing the difference solely to institutional ownership.

He said variations among universities and other factors affecting examination outcomes require detailed research before broad conclusions can be drawn.

According to the Ministry of Education, 70,544 of the 550,210 students who sat this year’s Grade 12 national examination scored at least 50 percent, representing a pass rate of 12.8 percent. Although the majority of candidates failed to meet the direct university admission threshold, the ministry has described the improvement from previous years as encouraging. The pass rate has risen from 3.2 percent since the introduction of the current university-based examination system.

The figures have intensified debate over how Ethiopia can expand access to higher education while ensuring that students have the academic foundations needed to complete their studies successfully.

Education stakeholders say any reform should involve the Ministry of Education, universities, regulatory authorities and other relevant institutions. The ministry has indicated its willingness to consider policy studies and legal adjustments affecting the private education sector, while encouraging private colleges to develop distinctive academic programs rather than simply replicate public university curricula.

Ethiopia has been elected to chair the 78th session of the Executive Committee (ExCom) of the United Nations High Commissioner for Refugees (UNHCR), strengthening its role in international efforts to protect refugees and promote shared responsibility for displaced populations.

Following the election, Ambassador Tsegab Kebebew Daka, Ethiopia’s Permanent Representative to the United Nations Office at Geneva, expressed gratitude to the African Group and other supporting countries for their confidence in Ethiopia’s leadership.

In his address to member states, Ambassador Tsegab highlighted Ethiopia’s longstanding tradition of providing refuge to people fleeing persecution. He cited the seventh-century Kingdom of Aksum’s protection of early Muslims who sought sanctuary from persecution in Mecca, describing the episode as an early historical example of the principle of non-refoulement, which prohibits returning refugees to places where their lives or freedom would be threatened.

“Refugee protection is a shared international responsibility,” Ambassador Tsegab said, calling for more equitable responsibility-sharing, stronger international cooperation and sustained financial support for refugees and the communities hosting them.

Ethiopia currently hosts more than 1.2 million refugees and asylum seekers, making it one of Africa’s largest refugee-hosting countries. The country has also undertaken commitments through the Global Refugee Forum and introduced initiatives, including the Makatet Roadmap, aimed at strengthening refugee self-reliance, expanding access to services and promoting inclusion alongside host communities.

Ambassador Tsegab emphasized that such initiatives require predictable, long-term international funding and effective partnerships to ensure their sustainability, particularly as humanitarian needs grow and resources become increasingly constrained.

Drawing on Ethiopia’s two years of service within the Executive Committee’s Bureau, he outlined a vision for an inclusive, transparent and action-oriented committee. He pledged to promote constructive dialogue between member states and UNHCR leadership, build consensus among countries with differing perspectives and advance collective efforts to address the challenges facing refugees worldwide.

Ethiopia’s election comes amid rising global displacement and mounting pressure on humanitarian funding, raising concerns about the ability of international agencies and refugee-hosting countries to meet growing needs.

Against this backdrop, Ambassador Tsegab stressed that efforts to improve operational efficiency and reform humanitarian programmes must reinforce, rather than weaken, UNHCR’s core mandate to protect refugees and other displaced people in vulnerable situations.