DBE Urged to Expand Reform Success in Alignment with New Macroeconomic Policy
August 21, 2024, Addis Ababa
Development Bank of Ethiopia (DBE) presented its performance evaluation report of the FY 2023/24 and its plan for the FY 2024/25 on August 19, 2024 at Addis Ababa Hilton Hotel in the presence of officials from the Ministry of Finance and Public Enterprises Holding and Administration (PEHA).
DBE Urged to Expand Reform Success in Alignment with New Macroeconomic Policy
August 21, 2024, Addis Ababa
Development Bank of Ethiopia (DBE) presented its performance evaluation report of the FY 2023/24 and its plan for the FY 2024/25 on August 19, 2024 at Addis Ababa Hilton Hotel in the presence of officials from the Ministry of Finance and Public Enterprises Holding and Administration (PEHA).
During the meeting, DBE has been urged to build upon the milestone achievements it has so far made over the past five years in implementing strategic reforms, including those completed in the last fiscal year.
The Bank has been requested to submit a plan that is compatible with the recently introduced macroeconomic policy, and which should also contribute to the national development endeavors.
Eyob Tekalign (PhD), State Minister of Finance said on the reporting occasion that DBE should remain committed to strengthen the astounding success stories demonstrated during the five-year strategic reform implementation period. Eyob pointed out that the Bank should work harder than ever to revise its plans and expand its financial reach by formulating new performance parameters in its strategic plan for implementation in the upcoming years.
The state Minister, who mentioned that the bank has been able to achieve the detailed activities that it had planned in the last five years as a demonstration of the success of the reform, also stressed that it should prepare itself for other new national missions by preparing a new reform implementation plan that centers the national macroeconomic policy for the coming years.
According Eyob, in the coming years, DBE should carry on its role as a strong development catalyst by identifying major national development sectors and filling their financial gaps through the supply of financial loans.
It was also stated that it is necessary for DBE to be a convenient bank for the youth and entrepreneurs by identifying sectors and creating financial access to them. DBE has best practice in this regard, and it needs to integrate this with international experience, it was also stated.
Habtamu Hailemichael, Directors General of Public Enterprises Holding and Administration (PEHA) on his part said the Bank has recorded a successful and healthy performance in all financial and non-financial sectors in the past reform implementation years as per the set global and PEHA’s financial parameters. According to Habtamu, DBE’s so far success has become a good showcase for the success of organizational reform.
Habtamu underlines that the registered success is the outcome of the concerted efforts of PEHA, the Ministry of Finance, and the Macro Committee, the Bank's board of directors and management as well as the employees of the Bank.
Yohannes Ayalew (PhD), President of Development Bank of Ethiopia (DBE), in his report said the Bank had reached a level where it was unable to provide financial services. But the government took a wise measure by which it injected additional capital and created enabling working environment. This in turn enabled the Bank to be fruitful in its five year reform implementation.
The President also added that due to the reform implementation, the Non-performing loan (NPL) has been brought down from 57% to 6.5% and Return On Asset (ROA) has now reached 2.8% from -1.
Yohannes added that the Bank's Return On Equity improved (ROE) from -34.5 percent to 12.9 percent while its capital was increased to 39.7 billion birr, the total assets reached 182.2 billion birr, and the approved loans of the Bank increased significantly to 57.9 billion birr in the FY 2016. The president also announced that the amount of loans collected during the budget year increased by 15.9 billion birr, the bank's loan stock reached 92.2 billion birr, at the end of the fiscal year 2016, and the number of projects financed by the bank, including those who paid and went out, reached more than 7,500.
According to the President, DBE bond is one of the sources of finance used by the bank for projects financing. In this regard, DBE was able to collect more than 39 billion birr in the past years, but currently the number of customers who requested to work with the bank is growing at a high level, and alternative financial sources are being prepared.
Development Bank of Ethiopia with its 115 years of financial services is currently operating across Ethiopia through its 24 districts and 101 branches.
