There are 10 insurance companies in ethiopia up from 9 in 2007, with about 200 branches across the country. One of them, the ethiopian peoples revolutionary party eprp, believed so strongly in civilian rule that it undertook urban guerrilla war against the military rulers, and anarchy ensued in the following years. Ethiopias real gross domestic product gdp growth decelerated to 7. The commercial code and the maritme code of ethiopia, insurance 46 provisions 1960. Access to finance in ethiopia microfinance gateway. Ethiopia has unveiled its sustainable and integrated development planning documents, the 5year growth and transformation plan and the climate resilient green economy strategy that shaped the content of this report. Electronic banking in ethiopia practices, opportunities and. Electronicbanking in ethiopia practices, opportunities. Currently there are 17 commercial banks in ethiopia, one state owned and 16 private.
Visit for more related articles at journal of internet banking and commerce. The history of currency and banking in ethiopia and the horn of africa from the middle ages to 1935, ethiopia observer, n. Evolution of propoor finance after economic liberalisation in 1994, poverty and food insecurity led the government of ethiopia goe to adopt microfinance as a prime component of its new economic development agenda. The paper examines the practices, opportunities and challenges of ebanking services in ethiopia. Hawassa university college of business and economics. Pdf origins and early development of banking in ethiopia.
Established in 1963, the national bank of ethiopia nbe started its operations in 1964. The emergence of modern insurance in ethiopia 41 3. Virtual banking includes all non traditional and electronic means of banking such as atm, phone banking, internet banking ib, credit cards and debit cards etc. Especially after world war ii, tourism, banking, insurance, and transport began to contribute more to the. The role of public and private sector banking in ethiopias.
Commercial bank of ethiopia is the largest, controlling the majority assets of the industry. Determinants of banking sector development in ethiopia by. Pdf the short life of the bank of ethiopia researchgate. As a result, the bank branch to population ratio has seen moderate improvement. Association of ethiopian microfinance institutions 15 3. Ethiopian banking history, in its modern sense, began towards the end of the reign of emperor menilek.
In fact, the history of banking in ethiopia dates back to the turn of the century, when, in1905, the bank of abyssinia was established in addis ababa, under the reign of menelek ii. The derg borrowed its ideology from competing marxist parties, all of which arose from the student movement. Certainly the banking industry in ethiopia is underdeveloped and therefore there is an all immediate need to embark on capacity building arrangements and modernize the banking system by employing the state of the art technology being used any where in the world. The number of bank branches as at june 30,2011 stood at 681. Ethiopian banking history started 2000 years ago, during axumite dynasty. The case of the association of ethiopian microfinance. The production and export of cash crops such as coffee were advanced, and importsubstituting manufactures such as textiles and footwear were established. Origins and early development of banking in ethiopia ideasrepec. Later, in ancient greece and during the roman empire, lenders based in temples gave loans, while accepting. This paper highlights development of ethiopian banking from the beginning of xx century to1936. The history of banking and other financial institutions in ethiopia free download as word doc. Click here to instantly access all the reports, in one place. National report of ethiopia sustainable development. Ethiopian banking system is one of the most underdeveloped compared to the rest of the world.
This resulted in the establishment of the federal democratic republic under meles zenawi. The period of agents of foreign insurance companies, 1920s 1950s 42 3. In addition, it restructured the two development banks as commercial banks, and introduced a new banking and monetary proclamation that gave more autonomy and further clarified the national bank of ethiopias activities as the. The structure and performance of ethiopias financial sector 5 clearly there is evolving structural shift when deposit is observed by institutions. To start with, the researcher accepts the universal argument that banks are unique from other business organizations. To start with, the researcher accepts the universal argument that banks are.
Characteristics of the banking sector in ethiopia currently, the banking sector in ethiopia is in a rudimentary and fragile state. Ethiopias economic progress by a range of experts, including the world bank, the. Pdf the bank of abyssinia, established in 1905, was given a 50years concession by the emperor. This was around 2000 bc in assyria, india and sumeria. Historical development, present status and future challenges explores the historical trajectories, thoroughly examines its emergence and the tortuous path it has gone through ever since the inception of insurance. Brown joined monash business school as professor of finance. The banking industry is in a much healthier place now than it was after the financial crisis of 2008. Development bank of ethiopia carbon initiative for development cidev component 3 of ethiopia additional financing for energy access project environmental and social management framework esmf for ethiopia offgrid renewable energy program and ethiopia clean cooking energy program final february 2017 addis ababa, ethiopia. Called the bank of abyssinia, or in amharic yeityopya bank, it was an affiliate of the national bank of egypt, and was founded in 1905. In general the trend is to move away form a dominant public sector towards a financial structure where the role of the private sector is becoming increasingly important. History of financial institutions contributes to the analysis of how the modern corporation, business and finance have shaped and keep on shaping our world. Situated in the horn of africa, ethiopia is bordered by eritrea to the north, sudan to the west, kenya to the south, somalia to the east and djibouti to the northeast. In fact, the history of banking in ethiopia dates back to the turn of the century. The today use of the expression microfinancing has it roots in the 1970s when organizations, such as grameen bank of bangladesh with the microfinance pioneer mohammad yunus, where starting and shaping the modern industry of microfinancing.
Insurance in ethiopia historical development, present status. The bank of abyssinia, a private financial institution established in 1905 in cairo under egyptian law, was given a 50years concession for carrying out banking activity in ethiopia by the emperor. Corporate governance in ethiopia there are a number of companies that are being formed by sale of shares to the wider public unlike most share companies in the past which were formed among founders. This was followed by this in depth access to finance in ethiopia study.
History of insurance in ethiopia modern insurance service in ethiopia started in 1905. Origins and early development of banking in ethiopia. The history of banking in ethiopia dates back to the era of the axumite. Endalkachew abebe a research project submitted in partial fulfillment of the requirement for. In the ethiopian context formal financial sector includes national bank. Ethiopia experienced famine in 1984 that killed one million people and civil war that resulted in the fall of the derg in 1991. Ethiopian banking system is still underdeveloped compared to the rest of the world. This period witnessed the establishment, as most readers will know, of the countrys first bank. Ethiopian economy and financial sector ethiopia has some notable historical differences compared to other countries in the region. Insurance in ethiopia historical development, present.
Doc history of insurance in ethiopia waqo guta academia. Ethiopias economy experienced strong, broadbased growth averaging 9. In a collection of nine succinct essays, this volume looks at the role of finance in european history from the beginning of the 19th century to the period after the second world war. A special feature of virtual banking is the physical absence of the person seeking banking services at the premises and out of premises even abroad.
Banks in ethiopia overview and guide to banks in ethiopia. Oct 09, 2019 the romans, great builders, and administrators in their own right took banking out of the temples and formalized it within distinct buildings. Ethiopias growth miracle, coupled with its large population and significant land mass, has attracted. Establishment of the first domestic insurance company 44 3. The birth and development of banking services in ethiopia. Ethiopia industry, information about industry in ethiopia. Historical background has to do with information regarding the formation date, time of the event, activities, and the business that occurred. Electronicbanking in ethiopia practices, opportunities and.
The case for financial sector liberalization in ethiopia. The banking sector in ethiopia has been dominated by the stateowned commercial bank of ethiopia cbe. The romans, great builders, and administrators in their own right took banking out of the temples and formalized it within distinct buildings. Commercial bank of ethiopia is the largest, controlling the. The history of banking began with the first prototype banks which were the merchants of the world, who gave grain loans to farmers and traders who carried goods between cities. First conceptualized in the mid1970s, some banks offered customers electronic banking in. This was followed by this indepth access to finance in ethiopia study. The ethiopian central bank issues banking licenses and supervises banks in ethiopia. Generally, public banks dominate the financial industry in ethiopia. Hawassa university college of business and economics school of management and accounting assessing the impact of core banking and service quality on customer satisfaction in commercial bank of ethiopia a case of bishofftu branch by.
Over the last ten years, the country has achieved doubledigit growth in real terms, averaging 10. The paper examines the practices, opportunities and challenges of e banking services in ethiopia. In fact, the history of banking in ethiopia dates back to the turn of the century, when, in1905, the bank of abyssinia was established in addis ababa, under the reign. In addition, it restructured the two development banks as commercial banks, and introduced a new banking and monetary proclamation that gave more autonomy and further clarified the national bank of ethiopias activities as the regulator and supervisor of the banking sector.
The first privately owned company in banking business was the addis ababa bank s. In ethiopia cash is still the most dominant medium of exchange and electronic payment systems are at an embryonic stage. The structure and performance of ethiopias financial sector. Another pioneer in this sector is akhtar hameed khan. In general the trend is to move away form a dominant public sector towards a financial structure where the role of the. It is small, relatively undeveloped, closed and characterized by a large share of state ownership. Microfinance in africa iv fworored as the 2015 deadline for achieving the millennium development goals is fast approaching, the incidence of poverty remains a critical issue in. Origins and early development of banking in ethiopia request pdf. Under haile selassie i reigned 193074, ethiopias economy enjoyed a modicum of free enterprise. There is also the development bank of ethiopia, which is not considered a commercial bank.
Ma gillivray, representative of the british owned national bank of egypt. Ethiopia remains impoverished, but its economy has become one of the worlds fastestgrowing. There has hardly ever been any work in insurance business in ethiopia that delved into the historical and factual aspects of the industry. Electronic banking, or ebanking, is the term that describes all transactions that take place among companies, organizations, and individuals and their banking institutions. Transfer of funds within the country was also a good source of revenue. Hawassa university college of business and economics school. Agricultural and industrial development bank share company by taking. Furthermore, iddir is a local association with long history, most widespread, commonly known in rural and urban settings. Although occupied by the italians for a short time in the 1930s, ethiopia does not share the colonial legacy of its neighbors. Banking sector in ethiopia the total number of banks operating in ethiopia reached 15 as two new private banks joined the industry during the fiscal year. Tomas hajek ethiopian industry, including both mining and manufacturing, constitutes approximately 12 percent of the gdp, while providing employment for 8 percent of the countrys labor force 1998 est. Download all the latest market reports you need on the banking industry in ethiopia.
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