After setting the record for an initial paid up capital for a new entrant bank in the Ethiopian banking industry, Amhara Bank keeps on selling shares to interested Ethiopians and foreigners of Ethiopian Origin.
At a press conference held at the Hilton Hotel, the organizing committee members of the Bank indicated that it managed to garner 6.4 billion Birr in subscribed capital and 4.8 billion birr in paid up capital.
In a protected industry that is only allowed to Ethiopians who mostly start a bank with a capital of 500,000 birr, Amhara Bank comes giant from the beginning. This announced capital is not inclusive of share values sold to foreigners of Ethiopian origin who were very recently allowed to buy shares in Ethiopian banks.
Apart from the record it registered in terms of the paid-up capital, the Bank’s number of shareholders is highest in the industry with 155,000 shareholders.
This number of shareholders, coupled with the Coronavirus pandemic, is challenging to hold the founders’ conference at one place. Hence, the Bank is resorting to delegation attendance in which multiple shareholders can delegate their respective representatives to attend and vote on their behalf.
Until it places a framework for the delegations, the Bank has decided to continue selling shares until November 30, 2020.
Speaking at the press conference, chairman of the organizing committee, Melaku Fenta said that the bank will begin operation within this Ethiopian year which has nine more months to go.
Melaku also indicated at the press conference that their huge capital will help them avoid domination within a market where some have been operating 25 years.
“The time we took to launch the bank has helped us raise our capital,” he said.
Apart from this, the Bank has finalized preparations to float bids for Automatic Teller Machines (ATMs) and e-banking systems.
Amhara Bank’s shares par value is 1,000 Birr and the minimum number of shares one can buy is 10 while the maximum is 100,000 shares.
The Ethiopian banking sector is one of the most profitable on the African continent where banks reap profits every year. Currently, there are 17 private sector banks operating in the country and two state owned banks.