ADDIS ABABA– The measurements and incentives in which the government has been taking and making available aimed at expanding private bank is appreciable, according to economics experts.
Addis Ababa University Economics Department lecturer Dr. Birhanu Dehna said that the number of private bank has been growing in the country as the government pays special attention to expand private bank in its free market economy.
He noted that the expansion of private banks is helpful to cover financial service that can’t be provided exclusively by public financial institutions. Due to this, private banks should operate without the government total intervention, he added.
Regarding the government’s recent steps to allow members of Ethiopian Diaspora to invest, buy shares and set up lending businesses in the banking sector, he said it has two corresponding advantages; on one part as the Diasporas are from technologically advanced countries it enables the country to get a technical support from them, on the other part, it enables to get foreign currency.
For his part, the same university Economics Department Assistant Professor Dr. Atlawu Alemu said that the expansion of private banks is very helpful to secure huge amount of foreign currency and to attract investors in droves. He stressed that beyond enhancing the banking capacity in the country, the participation of Ethiopian Diaspora in bank sector enables to reduce currency exchange at black market.
As to him, though the measurements that have been undertaking by government to encourage private bank is very well still now the accessibility of bank is not enough especially in the small rural cities government should work to put in place various banking infrastructure.
Also Deputy Chairman of Hijra Bank Mukemil Bedru said he appreciated the initiation of Prime Minister Abiy Ahmed on the economic reform and noted that the community needs interest -free banks and the establishment of such bank will satisfy this need .
As to him, the Interest Free Banks is very helpful to boost the economy of the country through expanding investment and creating employment in the country. He underscored that his bank will provide a service equally for both Muslim and non – Muslim customers.
The Ethiopian Herald, August 14/2019
BY TAMERU REGASA
