Profile picture
M.B. Yimam @BilalAlHabashi
, 11 tweets, 13 min read Read on Twitter
#Muslims r one of the most financially excluded citizens in #Ethiopia & their primarily reason is #Riba. But I wonder how & where the data for such reports are collected? "Financial inclusion in Ethiopia: 10 takeaways from the latest Findex" via @WorldBank
Citizens who identify themselves as #Muslims account for 34% of the #Ethiopia'n population (CSA, 2007). This large segment of the society was demanding Shari'ah Compliant #finance for long time. Banks first responded by introducing 0% interest A/C #financialinclusion @WorldBank
Banks attracted millions of customers and mobilized billions of Birr in deposits. Sadly, customers were unaware that these deposits are not #ShariahCompliant and they were subjected to successive devaluations which has impacted them a lot. #financialinclusion #Ethiopia @WorldBank
Banks are here the beneficiaries as they were getting free cost deposits for their conventional business. #ZamZam Bank (under liquidation) was the first to come up with a fully-fledged Interest Free Bank #IFB (#Islamic Bank) #financialinclusion #Ethiopia @WorldBank
Though it has fulfilled the threshold capital then, it was unable to start business as a new directive (on October 1, 2011 only allowed the window model. Since then 10 Banks have started an #IFB window service & business is booming 4 them! #financialinclusion #Ethiopia @WorldBank
They have currently 2 M+ customers at this new service. They have also mobilized close to 20 B Birr in deposits but deployed less than 5 B Birr. Mind you this is apart from the 15+ billion 0% int A/C deposits in their conventional wing #financialinclusion #Ethiopia @WorldBank
But still there is a huge demand 4 the service in many parts of #Ethiopia which the Banks couldn't (don't want) 2 attend. All deposit products offered by these banks are similar & only one financing/investment scheme is offered by very few of them #financialinclusion @WorldBank
The National Bank of #Ethiopia has admitted the limited availability of of #ShariahCompliant financial services in its National #financialinclusion strategy. But no concrete strategic direction were set 2 unleash its full potential 👉#IFB #Takaful #microfinance #Sukuk @WorldBank
The reason 4 lack such clear strategy is because of the alleged "absence of data on the demand". They have relied on data crunched by @WorldBank #findex survey. Are the results in #Afar #Somalia #Assosa #Harari #DireDawa #Wallo etc the same with the other regions of #Ethiopia?
The National Council for Financial Inclusion that is accountable to the #PrimeMinster #AbiyAhmed should revise the current strategy so that every citizens have #AccesstoFinance and #Ethiopia achieve the objectives set out regarding #financialinclusion @fitsumaregaa @TweetMoFED
@threadreaderapp please unroll
Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to M.B. Yimam
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member and get exclusive features!

Premium member ($30.00/year)

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!