Oromia International Bank established (Capital)

Oromia International Bank S.C. was established at an assembly of founder - shareholders on December 29, 2007 at the Hilton Hotel. Pictured are the members of the founding commitee, (left to right) Mekia Mamuye, Yemiru Nega, Getu Gelete. Photo: Capital

Oromia International Bank established

By Muluken Yewondwossen

Capital

Addis Ababa, Ethiopia - Oromia International Bank’s founding general assembly has been held on December 29, 2007 at Hilton Hotel with over 2000 attending. The bank will open its first branch in April 2008.
Oromia International Bank is to engage in commercial banking and to extend banking services in both rural and urban areas. Currently the bank has more than four thousand registered shareholders.

The provisional committee took the responsibility of organizing and facilitating the convening of a more formalized meeting of the founders and put together proposals that require the approval of the wider body of the founding members. After deliberating on the criteria of selection, 21 prominent business owners and academicians were elected as promoters.

The founding meeting has elected a board of directors, which shall be responsible for the finalization of the licensing of the bank and its consequent commencement of banking services.

The board shall carry out all activities necessary to meet the minimum legal requirements for the inauguration of the bank. Zonal promoters committees will be elected to further widen the equity base of the bank.

The promoters envisage that the bank has an authorized capital of 1.5 bln ETB, a subscribed capital of 300 mln ETB and a minimum paid up capital of 80 mln ETB. The paid up capital is deposited in a bank in a blocked subscription account in the name and account of the company until it is legally registered and becomes operational.
The shares of the bank shall be ordinary registered shares of the same par value in the name of the shareholders. Each share shall carry one vote and entities the owner to participate in the net profits in corporation to his/her paid up share, and to the net proceeds upon the company’s winding up.

The par value of each share is Birr 1000 and a subscriber shall subscribe to and pay a minimum of four shares. Persons subscribing more than four shares shall have to pay at least one fourth of the value of the total shares subscribed to at a time of subscription.
Sources close to the establishment process said the bank will have branch offices in every woreda in the Oromia region. “One of the objectives of the bank is to make farmers beneficiaries. In addition, to providing service to farmers, there is the possibility that farmers could buy shares in the bank,” sources said.

Renowned business persons like Yemiru Nega, owner of Dembel City Center, Getu Gelete, owner of Getas Trading, Alemayehu Ketema, a contractor, Duguma Hunde, owner of DH Geda, Kebir Hussen, owner of Arsi Agricultural Mechanization, Dr. Likissa Dinsa, owner of Dandi Boru school, and Mekia Mamuye of Mekia Enterprises, who have played important roles in making the bank a reality, make up the board.

Capital