The former Amhara Credit and Savings Institution (ACSI) now Tsedey Bank is set to become the largest private bank in Ethiopia by joining the banking industry of Ethiopia next Saturday.
Tsedey today inaugurated its modern data center at its head quarters in Bahir Dar city, the capital of Amhara region of Ethiopia. Speaking at the inauguration this morning, Gedu Andargachew, Board Chairperson of Tsedey Bank and former Minister of Foreign Affairs of Ethiopia, indicated that Tsedey Bank is one of the biggest banks in Ethiopia with paid-up capital of 11.3 billion Birr and with over 40 billion Birr total asset.
When it begins operation on Saturday Tsedey Bank will use its 500 branches in Amhara region. He also stated that currently Tsedey Bank has 24 billion Birr total saving and disbursed a total of 28.8 billion Birr loan. 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.
When it officially joins the banking sector next week Tsedey Bank has provided loan to a total of 1.3 million people mainly in Amhara region. Currently there are 24 active private banks while several are also under formation.
It is recalled that about a week ago, the Government of Ethiopia has decided to open the banking industry of the country for foreign investors for the first time. In addition to the private banks the state-opened Commercial Bank of Ethiopia (CBE) has about half the market share in the banking industry of Ethiopia.
Other than CBE, the Government of Ethiopia also owns a priority bank Development Bank of Ethiopia, which provides financing including lease financing to priority sectors identified by the government mainly for those engaged in the manufacturing sector.
ACSI began operations in 1995 as a department of the organization for the Rehabilitation and Development of Amhara (ORDA), a local non-government organization, and was licensed as a separate micro finance share company in April 1997.
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.