cbe

USD
55.2124
56.3166
,
GBP
64.4967
65.7866
,
EUR
58.7184
59.8928
,
CHF
57.9363
59.095
,
SEK
4.5316
4.6222
,
NOK
4.6506
4.7436
,
DKK
7.1279
7.2705
,
DJF
0.3092
0.3154
,
JPY
0.3362
0.3429
,
CAD
37.1227
37.8652
,
SAR
13.3203
13.5867
,
AED
13.6031
13.8752
,
XAF
0.012
0.0122
,
INR
,
KES
,
AUD
32.1139
32.7562
,
SDR
,
ZAR
,
CNY
6.8347
6.9714
,
KWD
170.5482
173.9592

awash

EUR
56.5106
57.6408
,
GBP
64.5257
65.8162
,
JPY
0.4037
0.4118
,
CHF
57.4629
58.6122
,
SAR
14.1527
14.4358

abyssinia

abay

USD
55.2124
56.3166
,
EUR
58.7184
59.8928
,
GBP
67.5358
68.8865
,
CHF
60.6663
61.8796
,
AUD
35.485
36.1947
,
AED
15.0311
15.3317
,
CNY
7.5522
7.7032
,
DKK
7.8761
8.0336
,
DJF
0.3092
0.3154
,
INR
0.664
0.6773
,
JPY
0.3715
0.3789
,
KES
0.3737
0.3812
,
NOK
5.1388
5.2416
,
SAR
14.7186
15.013
,
ZAR
2.946
3.0049
,
SEK
5.0073
5.1074
,
SDR
72.654
74.1071

zemen

CAD
41.0196
41.84
,
EUR
58.7184
59.8928
,
GBP
67.5358
68.8865
,
SEK
5.0073
5.1074
,
USD
55.2124
56.3166

buna

USD
54.778
55.8736
,
EUR
60.4201
61.6285
,
GBP
67.3216
68.668
,
AED
13.4962
13.7661
,
SAR
13.2148
13.4791
,
CAD
37.5106
38.2608
,
CNY
6.9339
7.0726
,
USD
7.3374
7.4841
,
EUR
4.7259
4.8204
,
GBP
60.0815
61.2831
,
AED
0.3485
0.3555
,
SAR
4.8953
4.9932
,
CAD
170.2997
173.7057
,
CNY
33.2543
33.9194

nib

GBP
64.4967
65.7866
,
EUR
58.7184
59.8928
,
CHF
57.9363
59.095
,
USD
55.2124
56.3166
,
CAD
37.1227
37.8652
,
AED
13.6031
13.8752
,
SAR
13.3203
13.5867

berhan

wegagen

USD
55.1843
56.288
,
GBP
65.3387
66.6455
,
EURO
59.0472
60.2281
,
CAD
37.1702
37.9136
,
AUD
32.2574
32.9025
,
CHF
58.7918
59.9676
,
SEK
4.4943
4.5842
,
NOK
4.6479
4.7409
,
DKK
7.1688
7.3122
,
DJF
0.3093
0.3155
,
INR
0.6629
0.6762
,
KSH
0.3749
0.3824
,
JPY
0.3382
0.345
,
SAR
13.3139
13.5802
,
AED
13.5955
13.8674
,
ZAR
3.1723
3.2357
,
CNY
6.8493
6.9863
,
KWD
170.6195
174.0319

dgb

USD
55.2124
56.3166
,
GBP
67.5358
68.8865
,
EUR
58.7184
59.8928
,
CHF
60.6663
61.8796
,
CAD
41.0196
41.84
,
AUD
35.485
36.1947
,
SEK
5.0073
5.1074
,
NOK
5.1388
5.2416
,
DKK
7.8761
8.0336
,
DJF
0.3092
0.3154
,
INR
0.664
0.6773
,
KSH
0.3737
0.3812
,
JPY
0.3715
0.3789
,
SAR
14.7186
15.013
,
AED
15.0311
15.3317
,
ZAR
2.946
3.0049
,
CNY
7.5522
7.7032
,
KWD
178.5845
182.1562

enat

USD
53.1422
54.205
,
GBP
62.1342
63.3769
,
CHF
0
0
,
SEK
0
0
,
NOK
0
0
,
DKK
0
0
,
KES
0
0
,
JPY
0
0
,
DJF
0
0
,
CAD
0
0
,
AUD
0
0
,
SAR
0
0
,
AED
0
0
,
ZAR
0
0
,
CNY
0
0

addis

nbe

KWD
126.8085
129.34467
,
CNH
5.6258
5.738316
,
ZAR
2.6751
2.728602
,
AED
9.9063
10.104426
,
SDR
57.7908
58.946616
,
EUR
48.4016
49.369632
,
CAD
28.7765
29.35203
,
AUD
28.3265
28.89303
,
JPY
0.3389
0.345678
,
SAR
9.7001
9.894102
,
INR
0.5525
0.56355
,
DJF
0.2234
0.227868
,
KES
0.3664
0.373728
,
DKK
5.8896
6.007392
,
NOK
4.2714
4.356828
,
SEK
4.3114
4.397628
,
CHF
41.5822
42.413844
,
GBP
53.539
54.60978

dashen

USD
55.2124
56.3166
,
GBP
64.4967
65.7866
,
CHF
57.9363
59.095
,
SEK
4.5316
4.6222
,
NOK
4.6506
4.7436
,
DKK
7.1279
7.2705
,
JPY
0.3362
0.3429
,
CAD
37.1227
37.8652
,
SAR
13.3203
13.5867
,
AED
13.6031
13.8752
,
EUR
58.7184
59.8928
,
DJF
,
INR
,
KES
,
AUD
,
ZAR
,
CNY
,
AED

oromia

USD
53.3285
54.3951
,
EUR
56.7522
57.8872
,
GBP
64.2235
65.508
,
SAR
14.185
14.4687
,
CHF
57.398
58.546
,
AED
14.5198
14.8102

lion

USD
55.2124
56.3166
,
GBP
64.4967
65.7866
,
EUR
58.7184
59.8928

coop

USD
55.208
56.3122
,
GBP
67.6574
69.0105
,
EUR
58.8131
59.9894
,
SAR
14.7182
15.0126
,
AED
15.0291
15.3297

gadaa

hijra

EUR
59.0833
60.265
,
USD
54.2297
55.3143
,
GBP
64.8713
66.1687
,
AED
13.3629
13.6302
,
KWD
168.8489
172.2259
,
SAR
13.3629
13.3481

National Bank of Ethiopia Issued Guide to Microfinance

Microfinance

The National Bank of Ethiopia issued a new guideline that requires microfinance institutions or small credit and savings to increase their capital by seven times. This directive was issued to lift the country’s capital.

The guideline states that microfinance institutions must increase their paid-up capital to 75 million ETB. The National Bank of Ethiopia has given small credit and saving institutions a seven-year time limit to raise their capital to the set amount. Those who want to establish a small credit and savings institution will also need a capital of 75 million ETB.

photo-5942546652764158238-yphoto-5942546652764158239-y

 

Currently, 45 microfinance institutions are registered with the National Bank of Ethiopia. Out of the 45 small credit and saving institutions, five of them are transformed into a bank. The new regulations apply to the remaining and new institutions. Fifteen microfinance institutions have capital ranging between 10 million and 20 million ETB. On the other hand, there are institutions with a capital of more than 100 million to 500 million ETB. This new directive is to help narrow the difference between these institutions and strengthen the small credit and saving institutions with lower capital.

Ato Tesheme Yeshi, Chief Executive Officer of Misrach Microfinance Institution, shared their opinion: “Since the National Bank of Ethiopia had repeatedly gotten requests for microfinance institutions to increase their capital, the new guideline will be strictly followed.”

Ato Teshome explained that in the past years, the amount of capital needed to establish microfinance institutions was set low to encourage small credit and saving institutions. However, it has made it challenging to carry out necessary microfinance activities, which makes the new regulation important.

This new guideline will also create an opportunity for credit and saving institutions to provide better loans, which can be considered a significant advantage. According to the new guideline, the minimum capital of a small credit and saving institution is 75 million ETB, and they can now provide a loan of up to 750 thousand ETB.

Additionally, it was noted that raising capital was necessary because of the current micro-economic environment’s effect on declining money-purchasing power.

Even though the National Bank of Ethiopia’s decision is considered appropriate and helpful for the country’s economic situation, the new guideline might be threatening and challenging for microfinance institutions with no capital of 75 million ETB.

Ato Teshome advised microfinance institutions on how to increase their capital in seven years.

What can Microfinance institutions do to meet the fixed capital? 

In response to this question, Ato Teshome stated that there are different options and some methods can be

  • Instead of collecting annual profits, add the profits to the capital instead.
  • Selling shares to foreign investors.
  • Selling shares to Ethiopian investors.

However, the current situation is not suitable for implementing these suggestions as a directive prevents foreign investors from buying shares unless they are in the country. This directive must make it possible for investors to buy shares as desired. Ato Teshome has added that this directive needs to be readjusted to support small credit and saving institutions.

Ato Teshome continued by stating that although microfinance institutions play an important role in Ethiopia’s economy, more help is required for them in order to boost their capital and expand their service. About 5 million clients have received loans from microfinance institutions, which have also helped create job opportunities. As a result, these institutions are an essential part of the country’s economy.