Ethiopia: Upgrading Credit, Saving Associations in a Way to Outpace the Economy

Jun 03, 2021 | Ethiopian Herald - All Africa

Widely acceptable that Ethiopia, as one of the world's fastest growing economies, is seeing carefully laid plans to boost its economy. And in order to strengthen the national economic growth better than ever, the government of Ethiopia is making different reform activities in the financial sector.

The current government of Ethiopia has embarked on a number of reforms to improve the efficiency and competitiveness of the banking sector in order to accelerate the process of economic growth. Of late, taking the reform as an advantage, different new Banks have been emerging.

Including the recently established 'Sinqe Bank' which was formerly known as Oromia Credit and Saving Share Company (OCSSCo), more than 20 new private Banks are under formation in addition to the existing 18 banks in Ethiopia with their strongest economic significance, documents from National Bank of Ethiopia indicated.

With a subscribed capital of 15 billion Birr and a paid up capital of 7 billion Birr, Oromia Credit and Saving Share Company (OCSSCo) has relicensed to provide banking service in consort with its long existing microfinance wing based on the Micro-Financing Business proclamation No. 626/2009 and national bank of Ethiopia directive No. SBB/74/2020. The company is also renamed as "Sinqe Bank" borrowing the name of Oromo women cultural institution.

According to the Bank's President Zewdie Tefera, the establishment of Sinqe Bank with a high capital makes it different from other firms. Equipped with over 15 billion Birr in total capital, the bank is expected to be competitive in the country's thriving financial industry.

"Purpose of the establishment is inaccessibility of contemporary financial service to the rural people in the region that contributes for their impoverishment," he added. It was stated that the new bank will use the existing 400 OCSSCO branches. The president stated that in its 23 year existence, the organization has provided credit and saving services to a significant number of people in Oromia State.

According to him, it is serving over one million clients including farmers, women, unemployed youths, traders, Medium and Small-Scale Enterprise operators, women entrepreneurs and others adding that the vision of this bank is to be the first (the leading bank) in the next five years and be one of Africa's largest banks... Read more on All Africa

Source: All Africa