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Ethiopia: Banking At The Somaliland Border

ISSUE 242
Front Page
Index
Headlines

Rayale Fails To Raise The Issue Of Igad Troop Deployment To Somaliland With Meles

''An Interim Agreement Gives Islamists An Edge In Somalia''

Somaliland, the Horn of Africa and US Policy

Somalia To Get Peace-Keepers

President Stresses Iran, Djibouti Common Political Views

A New Use For Camel's Milk: Sell It Abroad

The Crisis In The Horn Of Africa: Nomads With No Future

Somalia Warns Uganda On Troops

Regional Affairs

Ethiopia: Banking At The Somaliland Border

Pastoralists Call On Governments To Improve Legislation On Livestock Sales - Report

Somalia Stutters Towards Stability

Negotiators For Somali Government, Islamists Hold Face-To-Face Talks In Sudan

Editorial
Special Report

International News

US Moves Nairobi Embassy Bomb Suspect To Cuba

US Struggles For New Somalia Policy

Brothers' Epic Feat For Charity

Cinema Is Now A Crime In Somalia

Toll hits 30 after more Somalis murdered

World In Danger Of Missing Sanitation Target; Drinking-Water Target Also At Risk, New Report Shows

Coping With Terror Threat To Tourism

FEATURES & COMMENTARY

Respect Tribes: They Do What Weak States Cannot

Remarks Made By Dr. Saad Noor At The Washington Post’s Debate On The Islamic Courts And Their Possible Influence In The Horn Region Of Africa

Somali Islamists Ban Music; "Intimidated" Top Artist Agree

Somalia's Money Lifeline Is In Limbo

America’s Somali Policy Still Dangerously Adrift

Somalis Left To A Life In Limbo As Peace Talks Are Put On Hold

Food for thought

Opinions

Somaliland : Love It Or Leave It

Protection Of Taxpayers’ Rights

The ICG Report Was A True Reflection Of The Facts On The Ground In Somaliland

Open Letter To Somalilanders Specially To SOPRI Conference Participants

Crying For Somaliland

Somalia : Cutting Through The Fog

UNDP/WORLD Bank Mission For JNA Undermined Somaliland Political Integrity

The Theory of Backwardness and Somalia/Somaliland Political Stage


Addis Ababa September 5, 2006 – Improved relations and growing business across the Somaliland border have spurred the provision of new banking services in the border town of Togoch'ale.

Nib International Bank (NIB) and Awash International Bank (AIB) are opening sub-branches in Togoch'ale, a town in the Somali regional state, near Somaliland.

A bank expert told Fortune that the business relations between Somaliland and Ethiopia have improved after the Berbera Port became an alternative for smaller goods transported into and out of Ethiopia. The major share of the business in the area is khat and livestock.

Improved business relations have enticed Ethiopian banks to open foreign exchange transaction sub-branch offices in the border town of Togoch'ale, a town with a population of 5,000.

According to banking experts, the daily transactions in the border town are estimated to be around 20,000 dollars. The National Bank of Ethiopia gave private banks permission to operate foreign currency transactions in 1998.

Wegagen Bank was the pioneer in the area, opening a sub-branch five months ago. NIB and AIB are setting up their offices and the sub-branches will be open in the coming two months.

An Awash Bank official told Fortune that the business situation in the area is not yet ready for a full fledged branch, but he has high hopes that the situation will improve and that Togoch'ale will soon be a big business center next to Dire Dawa in the eastern part of the country.

NIB is planning to operate foreign exchange transactions as well as handle money transfer services for transporters and truck drivers, whereas Awash will concentrate only on the foreign exchange transactions, for the time being.

This is the first time either bank opened a sub-branch. For both banks, the new sub-branches will fall under the administration of their respective branches in JigJiga.

NIB was established on May 26, 1999 with an initial paid-up capital of 29 million Br, which has now grown to 200 million Br. It commenced operation in October, 1999. It has over 800 employees and 23 branches, of which four are outside of the capital.

AIB was established as the first private bank in Ethiopia on November 10, 1994. AIB had 486 founding shareholders with a paid-up capital of 24.2 million Br and started banking operations on February 13, 2005.

By Wudineh Zenebe

Source: The Addis Fortune



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