Thread by @BilalAlHabashi

Yesterday, we have witnessed the handing over of the 1st operational licence to the first full-fledged #InterestFree Bank #ZamZamBank which is a historic milestone in the #Ethiopia'n Banking industry. #IslamicBanking #IFB #FinancialInclusion
#ZamZam 1/n

After the promoters of #ZamZam initiated the idea to the #NBE a directive was issued in October 1, 2011 to allow conventional banks only to give the service along with their commercial services. The #NBE's decision has saddened many. 2/n

#InterestFreeBanking #FinancialInclusion

11 Banks has so far started the service in a window model. Currently, these banks combined has mobilized more than 60 Billion Birr in deposits through 5+ million accounts. It is a huge amount compared to the low attention & investment given to #IFB by all stakeholders. 3/n

These banks offer similar deposit & financing products despite existence of unique value propositions in #IslamicBanking. It is attributed to absence of conducive regulatory frameworks, lack of skilled manpower, low awareness among customers etc 4/n
#InterestFreeBanking #Ethiopia

But, many of the problems can be attributed to the reluctance of these banks & other stakeholders to promote the service. There is a huge potential in #Ethiopia for #IslamicFinance and #IslamicBanking is not the only one #Takaful #IslamicMicroFinance have untapped markets too 5/n

The current administration of #NBE that allowed full fledged Banks and #Takaful operators deserve appreciation but it should do more for the industry to develop and unlock its full potential so that citizens as well as #Ethiopia benefits from the industry
#islamicfinance 6/n

Other institutions should follow suit & create enabling environment so that innovative products & services could be offered to customers like #Ijarah #Mudarabah #Musharakah etc where the Western banking adopted these 1400+ yrs old principles in to its operations many yrs ago 7/n

The Industry should welcome #ZamZamBank and other similar banks with open hearts as competition is one more reason why an institution try their best to stay relevant. Besides, customers will benefit from healthy competition among players.

#IslamicBanking #InterestFreeBanking 8/n

I was privileged to attend the ceremony. It was historic & well organised. #ZamZam did a wonderful job in inviting all commercial banks to the event. But only Two have showed up! The CEO has pointed out that in #IFB "banks should not be competing but complementing each other" 9/n

I have followed many interactions here at @Twitter. Many of my friends have also shared me screenshot of FB posts. The reception of the news, the excitement, curious questions posted and concerns raised by people were interesting.

#ZamZamBank #InterestFreeBanking #Ethiopia 10/n

However, though expected, it is annoying to see the #misinformation #disinformation & deliberate attacks on people in connection with the news & #IslamicBanking in general . It is disturbing when such thing is carried out by known personalities & medias #Ethiopia #Inclusion 11/n

One can not rule out the involvement of of known individuals & institutions in this negative campaign. I remember two individuals from the industry who have on the record expressed their utter rejection of #IFB not based on facts but out of their #hatred & #Islamophobia 12/n

I have no doubt that #InterestFreeBanking & other institutions based on #IslamicFinance will contribute positively 2 the financially excluded segment of our society. It will also bring an alternative 2 many #Ethiopians who share the value propositions offered by it #Ethiopia 13/n

Our roles as citizens should be to encourage more financial institutions join the industry with more unique & innovative products & services. Our constructive criticisms should be forward towards them so that they would not do the same mistakes as their existing counterparts 14/n

Otherwise the discussion will be different & would not help the industry or our #Ethiopia. There are a dozen of other banks lined up to join the industry. Besides, at one point in time the industry will be open to foreigners.

#InterestFreeBanking #FinancialInclusion #IFB

#End

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