Shabelle Bank Review

Shabelle Bank Exchange Rate 

 Customers can find the Latest exchange rate at shabelleBank here.

About Shabelle Bank

The formation of Shabelle bank was due to the merger of one of the strongest microfinance institutions, Somali Micro Finance Institution (SMFI), under the brand name Shabelle giving an identity base for its entitled from one of the longest rivers in the Horn of Africa, Wabi Shabelle river which makes its pass through Somalia region of Ethiopia. The reformation was made following the directive of the National Bank of Ethiopia (NBE) issued in mid-2020, allowing microfinance institutions to evolve into commercial banks.   

Before its transaction, Somali Microfinance Institution share company (SMFISC) had been giving its microfinance operation services starting from the time of its foundation and registration by the National Bank of Ethiopia in 2017 through its 42 branches across the Somali region and beyond with its center being held inside the region.

With the permit given by the National Bank of Ethiopia (NBE), SMFI, jointly with the formation of interest-free banking (IFB), filed its application in May last year to the National Bank of Ethiopia (NBE) to evolve itself to become a bank under the brand name Shabelle and has officially received its commercial banking license to boost its operation under the full-scale financial scheme.

Building Growth Strategy for Banking

Shabelle builds its growth strategy on its position as a leading Islamic Bank with deeply rooted customer relationships and strong engagement with the local communities. The Bank operates strictly under the principles of Islamic sharia and is well organized for its product development capability, Islamic baking research, and advisory services. It works under the supervision of the resident Shariah board member and a Shariah supervisory board comprising internationally renowned scholars. 

This makes the Bank the first Somali-owned Bank in Ethiopia and the third interest-free banking (IFB) provider since it conducts all its operations under the principles of Islamic banking and is fully disengaged from interest-based transactions. The Somali regional government has the most extensive shareholdings in the Bank to create financial inclusiveness for the societies of ethical financial products”.

Shabelle Bank commenced its operation with a dual headquarters concept, from Addis Ababa and Jigjiga, which is the capital of the Somali region,” giving the business headquarter set of the Bank at Addis Ababa and the political head office at Jigjiga, with a possible chance of adjustments in the future said Khadar Ahmed, President of Shabelle Bank during the license receiving ceremony of the Bank. The Bank stands by the aim of serving its clients better, and it will continue its microfinance operation like in the past. In contrast, the banking operation may include different services, such as international banking and the full spectrum of banking Services.

Service provided by Shabelle Bank 

Shabelle bank Still provides its microfinance service despite its transformation to a private commercial Bank, offering different banking service choices for its customers.

1, Personal Banking

Shabelle Bank has brought banking to the fingertips via an all-in-one, modern, user-friendly, and secure mobile banking app. customers can check account balances. Account histories, make transfers, view your financing facilities, manage your cheques, contact the Bank, and more on the Shabelle Bank mobile app anywhere. Has different, as seen below

• Asset Financing: Asset financing enables you to access business assets such as equipment, machinery, and vehicles without purchasing them upfront. It can also free up cash from the value of assets you already own or use your existing assets as collateral against a business loan from an asset financing lender. Assets like home and vehicle 

 

• Current Account: The account is designed based on “Al-Wadiah” Islamic ‘Shari’ah” principles. Customers can withdraw their funds from this account on demand. On the other hand, the Shabelle Bank takes permission from customers that the Bank may utilize their money. No profit is disbursed in these Accounts, and depositors are not subject to any losses on their balance. The customers will be beneficial by getting Access to an internationally recognized debit card. It has no special requirement.

 

• International Banking: Navigate import-export transactions with ease at Shabelle Bank
• Import Financing: Shabelle Bank will use various Islamic banking tools to finance multiple aspects of the import process in a “Shari’ah” compliant manner. The Bank will have the capacity to facilitate the following vital elements.
• Imports under Documentary Credit (Sight & Usance).
• Imports under Collection (DP & DA).
• Import Financing.
• Shipping Guarantees.

Shabelle bank will also facilitate requirements for bonds/guarantees that an importer requires.

 

• Export Financing: Exporters are critical to the economy as foreign exchange earners. Shabelle Bank will provide exporters priority treatment. The Bank will leverage Islamic banking tools to facilitate various aspects of the export process in a “Shari’ah” compliant manner. The following export elements are facilitated through Shabelle Bank, export financing.
• Exports under Collection (DP & DA)
• Exports under Documentary Credit (Sight & Usance)

Shabelle bank will also facilitate requirements for bonds/guarantees that an importer requires.

 

• Savings Account: Open a Shabelle Bank savings account and take your first step toward guaranteed growth!
• Foreign Currency Savings Account: can be opened in multiple currencies. Ethiopian individuals earning in a foreign currency, and residing abroad, will be eligible to open foreign currency accounts. These accounts will be based on the “Mudarabah” principle and comply with local regulations and ‘Shari’ah” codes. It has Attractive profit rates and an Easy account opening procedure(Minimum balance of $ 50)

 

• General Savings Accounts(Mudarabah): allows customers to profit from their deposits. Shabelle Bank will invest funds on behalf of the customer. The Bank allocates an attractive percentage of the profits earned towards the customer’s savings account. Customers can deposit and withdraw money from their accounts whenever they wish. 

 

The Unique Benefit of the Account

 The tiered profit sharing ratio (PSR) is calculated monthly and distributed quarterly if the required minimum balance is maintained

24/7 customer connection channels through call center and social media, The higher the balance, the higher the customer profit ratio.

 

Special Requirement to have this account 

Minimum balance of 1,000 Birr

Minimum daily balance of 1,000 Birr.

 

2, Hajj/Umrah Savings Account

Hajj is the fifth pillar of Islam. It is mandatory for every Muslim who has the means to perform the duty. However, due to the prevailing socio-economic situation in the country, individuals interested in performing Hajj can only arrange the required amount of money at a time. The desire of many to perform Hajj still needs to be fulfilled. Shabelle Bank has, therefore, introduced a Hajj savings scheme to allow individuals eager to perform Hajj to build their savings.

The unique benefit of the account

Persons eager to perform Hajj within one to twenty-five years may build up savings by depositing a monthly installment.

At the end of the period, if the total deposited amount, including profit, becomes less than the actual expenditure for Hajj in that particular year, the depositor may perform Hajj by depositing the balance amount.

The tiered profit-sharing ratio (PSR) is calculated monthly and distributed quarterly if the required minimum balance is maintained.

No annual account maintenance fee is required if the minimum balance is maintained.

 

 Special requirement to have this account 

Minimum balance of 1,000 Birr.

Agreement to withdraw funds only once a year, on necessity.

 

3, Senior Citizens Account:

The Shabelle Bank seniors deposit account is based on the “Mudarabah” principle of Islamic ‘Shari’ah.” After a long, busy life dedicated to their career, family, and society, senior citizen deserves some priority. Shabelle bank will offer them exactly that.

The unique benefit of the account

Applicable only to senior citizens above the age of 60 years.

Higher profit-sharing ratios.

Priority services are offered at the branch level.

 Special requirement to have this account 

Priority services are offered at the branch level. 

 4, Corporate Bank

 Corporate finance is the subfield of finance that deals with how corporations address funding sources, capital structuring, accounting, and investment decisions.

• Investment Deposit Account: has two options 
• Flexi-Term Deposit: The flexi-term deposit is structured under “Wakala” Islamic Investment principles. ShabelleBank will have the authority to invest the deposit amount and return it with expected profits, according to the tenor of the investment. The additional flexibility is the ability to withdraw funds during the “Wakala” tenor. These accounts will be available in local and foreign currencies. 

The unique benefit of the account

  The investor is expected to receive attractive yields semi-annually; Clients have the flexibility of withdrawal at each profit payment date.

 Special requirement to have this account

 A minimum Investment of 6,000 Birr is stated as one of the

• Fixed Term Deposit: “Wakala” refers to a contract where an investor authorizes an entrepreneur (Shabelle Bank) to do certain financial transactions on their behalf. It is a contract of agency where the Bank will act as an agent of the investor while charging a fixed management fee (“Wakala” Fee). Shabelle Bank will invest the customer’s funds and return them with profits at maturity. These accounts will be available in local and foreign currencies.  

The unique benefit of the account

Highest safety and security 

In case of falling profit rates in the market

the client will continue to enjoy the expected high profit and be Full “Shari’ah” Compliant.

 Special requirement to have this account 

  A minimum Investment of 6,000 Birr and a declaration of income are a 

• Asset Financing

We help you invest in assets to secure your future or grow your business.

• Asset Financing(Musharaka): Asset financing will be based on the principles of “Diminishing Musharaka.” The Bank and the business jointly purchase the asset (i.e., property/machinery e
• Etc.). The Bank subsequently leases its share to the customer. The business is also offered the opportunity to buy equity shares of the assets. Shabelle Bank will gradually reduce the holding until the title to the property is completely transferred to the business.
• Term Financing(Musharakah): Shabelle Bank will offer “Shari’ah” compliant term loans under the Islamic Musharakah principle. It is an agreement under which Shabelle Bank provides capital for the business to engage in profit-generating – “Shari’ah” compliant activities. The profit/losses are distributed between the Bank and the company at predetermined ratios. Shabelle Bank will act as the sleeping partner, and the customer will be the main working partner of the partnership. A Bank representative will be observing the activities of the business.

• Working Capital Finance(Tijara): Working capital financing for businesses is offered under the Islamic “Tijara” principles. The facility will enable businesses to meet their working capital requirements, sell finished goods, and settle with Shabelle Bank. Under the “Tijara” principle, the Bank will purchase the finished goods of the business. It will appoint the business as its agent to sell the same goods in the market. The facility is settled via the receipts of the sale.

5, Mobile Banking

Shabelle Bank has brought banking to the fingertips via an all-in-one, modern, user-friendly, and secure mobile banking app. Quickly check account balances and account histories, make transfers, view your financing facilities, manage your cheques, contact the Bank, and so on the Shabelle Bank mobile app anywhere.

6, Microfinance

Shabelle Bank was established as a microfinance institution before its transformation. Now, as a banking institute, shebelle understands the pulse of this market segment and intends to be a key enabler for small businesses and households within the country.

 Additional services offered by shabelle Bank

Financing and Investment products to be availed by the Bank for its esteemed customers includes:-

• Trade-Based Mode of Financing (Murabaha, Salam, and Istisna‘a)
• Rental-Based Mode of Financing (Ijarah)
• Partnership-Based Mode of Financing (Musharaka)
• Interest-Free Export Financing (Qard Al Hassen)