The shareholders of Omo Microfinance voted to transform their 25-year old establishment into a conventional bank. It will be called Omo Bank.
The management of the microfinance institution has already submitted a request for a license from the National Bank of Ethiopia.
Established with an initial capital of less than a million Birr in the aftermath of the liberalization of Ethiopia’s economy three decades ago, Omo will join the banking industry with a capital of 10.6 billion Birr and a customer base of more than seven million.
The two leading microfinance institutions- Amhara and Oromia Credit & Saving share companies- have already held a general assembly to transform into a bank. Their request is currently being reviewed by the National Bank of Ethiopia.
There are 20 banks in Ethiopia, with Zamzam, Hijra and Goh being the latest to join the industry this year.
