Former microfinance becomes largest private bank in Ethiopia
By joining the banking industry in Ethiopia next Saturday, the former Amhara Credit and Savings Institution (ACSI), now Tsedey Bank, will become the largest private bank of Ethiopia.
Tsedey today opened its new data center at the headquarter in Bahir Dar city. This is the capital of Amhara region, Ethiopia. Gedu Andargachew – former Minister of Foreign Affairs, Ethiopia – spoke at the inauguration. Gedu is the Board Chairperson of Tsedey Bank. Tsedey Bank has a total assets of more than 40 billion Birr.
Tsedey Bank will open its 500 branches in Amhara on Saturday when it goes into operation. He also stated that Tsedey Bank currently holds 24 billion Birr of total savings and has disbursed an aggregate of 28.8 Billion Birr loans. Tsedey Bank will officially join the banking industry of Ethiopia upgrading itself from a microfinance – ACSI – which was serving the people in Amhara region of Ethiopia.
Tsedey Bank will officially join the banking sector next week. It has provided loans to a total 1.3 million people, mainly in Amhara. There are currently 24 active private banks, and many others are in formation.
It is important to recall that the Government of Ethiopia had, approximately, a week before. The government decided to open the country’s banking sector to foreign investors for the first-time. In Ethiopia, the market share for the banking industry is almost equal to that of private banks.
The Government of Ethiopia has a priority bank in addition to CBE. Development Bank of EthiopiaThe government has identified priority sectors that will be eligible for financing, including lease financing. This is primarily for those involved in the manufacturing sector.
ACSI was founded in 1995 as an ORDA department. It was licensed in April 1997 as a separate micro-finance share company.
Its primary mission is to improve the economic situation of the low income, productive poor in the Amhara region – primarily through increased access to lending and savings services. Initially ACSI has had a strong link with government, with the state government holding 25 percent of ACSI’s shares.
Source: newbusinessethiopia
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