Cooperative Bank of Oromia has started Collateralized Commodity Financing (CCF) for the first time in Ethiopia.

Cooperative Bank of Oromia has started Collateralized Commodity Financing (CCF) for the first time in Ethiopia.

This loan will have a wide ranging benefit to the community as farmers are no longer obliged to sell their crops during low seasons. The product has been officially inaugurated today by financing the first warehouse receipt 000001 to Hetosa Farmers Cooperative Union.

 


Fund-raising has been organized by the Coopbank Employees to support Artist Hachalu Hundessa's family

Following the death of the late iconic hero Hachalu Hundessa, employees of the Cooperative Bank of Oromia have organized a fund-raising effort to support his family and the management of the bank have arranged for the purchase of its equivalent in share of the bank. Employees from branches, headquarters, and district offices have contributed a total of ETB 1,456,500.00 for the cause.
The bank's president, Mr. Deribie Asfaw has presented the share certificates for Wabi Hachalu Hundessa, Milki Hachalu Hundessa, and Gifti Hachalu Hundessa.


Coopbank launches Ethiopia’s first digital lending product named Michu

Cooperative Bank of Oromia & Kifiya Financial Technology announce partnership for the launch of Ethiopia’s first uncollateralized digital lending product, Michu.

Addis Ababa, Ethiopia, January 12, 2022, Cooperative Bank of Oromia (Coop bank) and Kifiya Financial Technology (Kifiya), today announced a new partnership and launched a digital lending product named Michu.

Coop bank’s Michu is Ethiopia’s first uncollateralized digital lending product, powered by Kifiya’s Qena, an AI-driven digital lending platform.

The partnership allows Coop bank to tap into Kifiya's digital lending technology and give Kifiya the ability to leverage Cooperative Bank of Oromia distribution and financial capacity. The Bank will offer lending solutions targeting Micro, Small, and medium businesses (MSMEs), providing access to credit, through groundbreaking and cutting-edge credit scoring systems.

Research shows that Ethiopia’s MSME Financing to GDP Ratio was 2% in 2020. This ratio is lower than South Africa’s 14% and Kenya’s 6% in 2020. Ethiopia’s poor ratio is attributed to the crowding-out of credit by the public sector and high requirements for a loan to MSMEs by Micro-Finances and Commercial Banks.

Financial institutions place high requirements partly due to a lack of credible credit ratings. Michu’s ease of access enables users to apply for loans and receive decisions based on credit scoring logic. The loan application process from eligibility and verification to analysis, scoring, and loan disbursement gets completed within a few minutes.

“We are excited to join hands with Kifiya as we expand our digital financial offerings and deliver support to the financing needs of micro and small businesses that are often neglected but represent a significant part of the economy.”, says Deribie Asfaw, President of Cooperative Bank of Oromia.

“Today’s partnership with Coop bank marks an exciting era for the Ethiopian Digital Economy as Kifiya’s Qena technology heralds uncollateralized digital lending in the country. With the help of our AI-powered credit scoring digital lending platform, we hope to address the needs of uncollateralized finance in MSMEs sector in Ethiopia”, says Munir Duri, CEO of Kifiya Financial Technologies PLC.

Michu has offerings, both loans in the form of loans and overdraft facilities, for Micro, Small, and Medium Businesses. The Microloans are aimed towards the working capital needs of roadside traders and micro businesses with a maximum loan amount of 30,000 ETB and a repayment period of 1-4 months.

Whereas, the MSME loans targets traders at small and medium levels with a maximum loan amount of 150,000birr and a repayment period of up to one year. Moreover, the loans are intended to cover the working capital of the MSMEs.  Michu also has another product targeted at employees of various organs called Consumer Loan.

The non-collateral digital lending product is a new desired loan service that is innovative and makes the loan service process swift, non-collateral, easy to access at anytime and anywhere. The product uses data to determine credit worthiness as well as a flexible payment method.  Michu digital lending product is expected to increase Coop bank borrowers by 30% during the pilot period.

For more information please contact:

Cooperative Bank of Oromia (Coop bank)

Mr: Abdi Fekede

Position: Director MSME

T: +251 911026530

E: [email protected]

Kifiya Financial Technologies PLC

Ms: Lewam Assefa

Position: Head Marketing - Qena

T: +251913 028610

E:  [email protected]

About Cooperative Bank of Oromia

The Cooperative Bank of Oromia was legally established and registered on October 29, 2004, in accordance with article 304 of the commercial code of Ethiopia and officially inaugurated on March 08, 2005.

The emerging financial services were primarily focused on wealthy individuals and large enterprises mainly in urban areas. The rural population, particularly farmers, small businesses owners, and large communities were excluded from financial services. Thus, the Cooperative Bank of Oromia was set up to correct this market failure and to overcome the associated problems of asymmetric information in favor of borrowers.

More than 67% of the bank share is owned by cooperatives, associations, individual farmers, and small business owners. The bank has been operating with the prime objective of transforming the livelihoods of farmers, micro, small, and medium business enterprises by enhancing their access to finance.

In doing so the bank has made a tremendous change for the past fifteen years in transforming farmers, MSME’s business, and other parts of a community that is financially excluded.

Using Michu digital lending platform Cooperative Bank of Oromia provides access to non-collateralized loans for Micro, Small, and Medium Enterprises. Michu is a credit score-based digital lending platform that addresses risk components for the bank. The credit scoring system provides a means of systematically and objectively assessing the risk and growth potential of MSMEs, thus allowing the platform to make a risk-based decision and reducing management and operational costs of small amount loans.

About Kifiya:

Kifiya financial Technologies was established in 2010 and operational in 2013 with the vision to make transactions simple affordable, secure, and within reach through building integrated and scalable technology and distribution infrastructures that enable access to financial and non-financial services.

Kifiya also built the capacity to develop innovative products and services that can bring value to consumers, cooperate entities, and the government. Its technology focusing areas include e-commerce, Logistics, Payment & Distribution services, Digital Agricultural solutions, and Digital Lending services.

In partnership witKifiya’s has over the past five years been developing AI-based credit scoring and digital lending platform (Qena), and appropriate products for the MSME sector to enable financial institutions to provide credit to individuals, micro, small and medium enterprises. The platform enables MSMEs, and individuals to apply and manage their credit through mobile or web and get responses in a timely manner.


Coopbank Launches Prize Linked Savings

The Cooperative Bank of Oromia has launched a prize-linked savings program with enticing prizes. For the first time, the bank began the program with the goal of encouraging people to save, and at the same time win attractive prizes.

 

On top of the high interest rates calculated for; Sinqe- Women Savings Account,  Gamme- Junior Savings Account, Youth Savings Account, Farmers Savings Account and Regular Savings Account, the bank is offering lotto numbers that will make customers eligible to win exciting prizes. Any eligible customer who saves for the program period starting at ETB 350, Coopbank of Oromia has prepared a total of 99 prizes! 1 two-bedroom apartment, 1 Suzuki Dzire 2021 model automobile, 3 three-wheel drives, 30 TVs, and 65 smart mobile phones that will be casted by lottery system.

The project will encourage people to save more since the more they save, the more lottery numbers they will be able to obtain, increasing their chances of winning. The bank has invested a significant amount of money in this program, which is expected to achieve two primary objectives. The first is that, because saving is a vital quality and people can utilize their money whenever they wish, such as in an emergency or to start a business, this program instills the habit of saving in our culture. The second is that 99 lucky people who use one of the aforementioned accounts will be chosen at random to win one of the attractive prizes.

 

 

 

You may go to a nearby branch of Coopbank to start saving today. Save for a better future.


Coopbank Introduces Farmers’ Savings Account

Ethiopia’s population is believed to be about 108 Million based on some estimates. Around 80-85 percent of its inhabitants live in rural areas and are engaged in agriculture. Frequent drought, lack of training and equipment for farmers, and poor access to markets make it difficult for them to earn a living. Beyond all, most of the problem occur due to the extravagant nature and low-level saving habit of the farmers.

During the harvest time, the farmers gain the yield and hence they are on the peak period. As a result, in this peak period, the farmer’s consumption and other expenditures reach the highest level although most of them are extravagant purchases. However, the harvesting period is not a peak in the price of their products as well as their savings, but a peak in the consumption, and hence they face difficulty during the lean period (post-harvesting time) and next year planting times.

Cooperative Bank of Oromia has become the first bank to provide Farmers' Savings Account with better interest and attractive rewards as well as interest free banking services to the community. As it is clearly stipulated on its mission of rooting in a larger community, the bank is able to develop a new product that for the first time, said to help people engaged in agricultural activities such as farming, fishing and animal husbandry etc. The product is believed to revolutionize the saving culture and bring a difference in the livelihoods of the farmers.

Farmer’s Saving Account is a saving account that is uniquely designed for farmer’s bearing attractive interest rate paid monthly and offers various rewards on a lottery system mainly farming tools such as Tractors. The product is designed to encourage the unbanked and underbanked farmers save and leverage the enormous untouched potential, and ultimately transform their living.

 


Coopbank and Ethiopian Airlines has Signed a Memorandum of Understanding

Cooperative Bank of Oromia, Ethiopian Airlines Group, and Ethiopian Airlines Group Primary Basic Trade Union has signed a Memorandum of Understanding today at Ethiopian Skylight Hotel. The agreement was signed by Obbo Deribie Asfaw, the President of Cooperative Bank of Oromia, Ato Tewelde GebreMariam, the CEO of Ethiopian Airlines Group , and Engineer Telila Dheresa, the President of EAG Primary Basic Trade Union. It’s noted on the event that the bank has already established a working relationship with EAG in areas of digital banking, strengthening of cooperatives in providing vegetables, milk and other agricultural produces to ET, and provision of financing to the employees of the company. The MoU is said to strengthen the already established business relationship between the signing organs in order to further enhance the growth of both companies.


5th Round Forex Award Program Winners

Cooperative Bank of Oromia handed over prizes of The 5th Round Forex Award Program to the winners. The management and employees of the bank and other stakeholders have attended the event that took place at the bank’s headquarters building.

Obbo Deribie congratulated the winners and spoke of the bank’s achievements and challenges. Speaking of the bank’s semi-annual performance, the bank’s president confirmed that the bank was able to collect forex amounted to USD142 million. Its branch networks reached 433 across the country with 7 million total numbers of customers, and its total asset reached ETB 65 Billion. He also conveyed his message to the community to receive remittances through formal channels in order to protect themselves from fraud and use Coopbank’s vast network of branches as well as more than 13 active money transfer operators throughout the country for ease of access.

ISUZU NPR truck with 40 quintals was handed over to Adde Tayba from Ogolcha, Arsi. In addition, three three-wheelers and ten LED televisions were handed over to the winners at the ceremony.


OCFU’s “One-Koo”Modern Coffee Factory Inaugurated

Oromia Coffee Farmers Cooperative Union inaugurated One-Koo coffee processing plant in Galan town whose construction cost 48 Million ETB financed by Cooperative Bank of Oromia. The inauguration ceremony was attended by the president of Cooperative Bank of Oromia, Obbo Deribie Asfaw, several other officials, and the interested stakeholders.

This coffee roasting, grinding & packaging factory produces 420Kgs of coffee per hour for local and international markets. Oromia Coffee Farmers Cooperative Union can now export value-added products & earn more proceeds than raw coffee exports. It will also create an additional 200 jobs.

Oromia Coffee Farmers Cooperative Union, one of the highest exporters of coffee in Ethiopia, has more than 400 cooperatives and more than 557,000 farmers as a member. The Cooperative Union is one of the major shareholders of the bank.


Coopbank’s Transitional Head quarter Construction Well in Progress

Construction of Cooperative Bank of Oromia’s transitional headquarter, a 16-story building, which was started in the last fiscal year, is advancing as planned and is assumed to be complete in the coming year.

The transitional headquarters, which is underway around Bole Rwanda, in Addis Ababa(Finfinne) is being built by Chinese Contactor China Wu Yi Co. Ltd and Image consultancy PLC the consultant firm.

At the end of August 2020, the construction of the curtain wall is under progress, air ventilation and fire sprinkler system are also under progress while gypsum work has been completed.

This transitional headquarter building will house its own special branch in its lower floors while the Bank’s Head Office staff populates the upper floors

The bank is making the construction of multi-purpose building project at Waliso and Jimma and will continue constructing own buildings in various parts of the country


The bank expands IFB service from window-based to branches

Coopbank is currently increasing its number of Interest Free Banking branches to more than 13.

Since the country is home to a large number of Muslims, they are not are not interested in using common banking services for it’s not in line with the rules of their faith. With this in mind, the bank is opening Interest-Free Banking branches in various cities of the country.
Acquiring an adequate experience from different parts of the world, public and private banks in the country are providing this service to meet the needs of their customers. Likewise, Coopbank is also increasing its number of branches which was only available through one window previously.
The expansion of the branches will help to provide affordable service and satisfaction to its customers.
In addition, to meet the needs of its customers, it has facilitated the provision of digital banking services based on Sharia law by providing Halal ATM card and Coopay E-birr.
The bank is working hard to achieve its goals and be the pride of its customers.