Banking Sector Generates 88 Million US Dollars to Ethiopia

BY NEW BUSINESS ETHIOPIA REPORTER

Ethiopian government has collected a total of one billion and 458 million birr (88.2 million US dollars at the current exchange rates) in profit tax from both private and government banks operating in country in 2009/10 fiscal year (July 8, 2009-July 7, 2010).

Ethiopian Government revenue from banking sector as Illustrated by newbusinessethiopia.com

The income of the east African country from private banking sector has grown by 39 percent for the fiscal year 2009/10 compared to the preceding year.

Ethiopia’s income in profit tax from the ten private banks in the country, which have began making profit, has increased by 162 million birr in 2009/10 fiscal year from the previous fiscal year. It reached 580 million birr (around 35 million US dollars at the current exchange rates).

Ethiopian banking sector data collected by newbusinessethiopia.com shows that the giant state-owned bank in the country, Commercial Bank of Ethiopia, has paid 840 million birr (50.8 million US dollars at the current exchange rates) profit tax in 2009/10 fiscal year which is 46 million birr higher than the preceding fiscal year. 

Banking sector in Ethiopia has also created jobs for a total of around 24,000 citizens. Out of which 13,000 are employed by the ten private banks that already began declaring profit.

The number of employees in the sector and government earning is also expected to increase next year as the new banks such as Abay, Debub global, Hawassa, Enat and Noah banks will go fully operational.

As almost all banks in the country began start making profit during their second year of operation, Bunna International Bank is also expected to contribute for the 2010/11 fiscal year tax income increment of the country from banking sector.