Ethiopia - Apply for a Microfinance Bank License

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Procedure

Apply In-Person:
Pre – Application Phase:

1. To apply for a microfinance bank license, applicant has to visit the National Bank of Ethiopia Contact link
2. Download and complete application form, as specified under Attachments I and II in the following application form
3. Also complete the propriety test questionnaire is given under the attached II form.
4. Now complete the forms with necessary information.
5. Make sure the applicant should have the necessary documents mentioned in the “Required Documents” section of this page.
6. After filling the form and attest with the signature.
7. Submit the application form to the relevant authority.
8. Pay the investigation fee as determined by the national bank.
   

Issuance of License:

1. Download the attachment IV from the following application form
2. Complete the application form with the necessary details.
3. Download and complete general information and propriety test questionnaires for directors, and chief executive officer as per ANNEXES I and II from the above link
4. Pay the licensing fee as determined by the national bank.
5. Now submit the form along with the fee to the concerned officer in the National Bank. The address is mentioned in the office locations & contacts section below.
6. Now the authorities will verify your application and validate the submitted documents.
7. After verification process, license will be issued to the applicant within 90days.
   

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Required Documents

• Completed application form
• Photograph
• Evidence of paid-up capital which includes certificate of deposits in a blocked account and evidence for valuation of contribution in kind (if any).
• Signed minutes of subscribers meeting with attendance sheet.
• List of names, nationality, address, number and value of subscribed shares of founders to be published in newspaper.
• Articles and memorandum of associations written in Amharic and preferably in English.
• Authenticated ownership certificate or lease agreement for building, land, vault, equipment, fixtures and professional services.
• Evidence for insurance coverage for premises acquired or leased.
• Description of actual purchases made or proposed purchase of goods and services or lease of real estate by the microfinance institution (under formation) from related parties and organizers
  

Office Locations & Contacts

National Bank of Ethiopia,
Addis Ababa,
Ethiopia.
Telephone: +251 115 517 430
Email: [email protected]
Fax: +251 115 514 588
Contact link

Eligibility

• Any person is eligible to make an application to run a Micro Finance Bank in Ethiopia.
• This application allows a person to operate a Micro Finance Bank in Ethiopia.
• In Kenya no person shall, operate a Micro Finance Bank in Ethiopia unless authorized by the National Bank of Ethiopia.
  

Fees

• Investigation fee birr 1,000
• Licensing fee birr 1,000.
  

Validity

The license valid is for 1 year.

Documents to Use

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Sample Documents

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Processing Time

The processing time is 90 days. This time may vary depending on the availability and correctness of the information provided.

Related Videos

Videos explaining the procedure or to fill the applications.
Attach videos using the following tag <&video type=’website’>video ID|width|height<&/video&> from external websites.
Please remove the ‘&’ inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver,
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url‘http://www.youtube.com/watch?v=Y0US7oR_t3M’ Video ID is ‘Y0US7oR_t3M’.

Instructions

To commence operation, a licensed microfinance institution shall:

• Put in place at a minimum comprehensive policy, procedure manuals, programs and guidelines for
• Credit
• Human resource management
• Procurement
• Liquidity management
• Internal audit/control
• Management information system/MIS
• Finance and budgeting
• Risk management
• Fixed assets
• Corporate governance
• Hire, train and place adequate and appropriate staff
  

Ensure that the microfinance institution meets the following requirements:

• Business operating area include:
  
  • proper ventilation and circulation of fresh air.
  • suitable and clean sanitary service
    
  • sufficient and suitable lighting
    
  • displays of working hours
    
• Insurance policy for the following at a minimum:
  • burglary and theft, and
  • cash and valuables in premise and in transit.
    

Required Information

• Name of the applicant and founders
• Address
• Phone number
• Email ID
• Bank account number
• Bank beneficiary name
• Date of birth
  

Need for the Document

• This license allows the holders to operate a Micro Finance Bank in Ethiopia.
• A person who operates a Micro Finance Bank without a valid license commits an offence and shall, on conviction be liable to a fine not exceeding five hundred thousand shillings, or to imprisonment for term not exceeding three years, or to both.
  

Information which might help

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Other uses of the Document/Certificate

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e.g. Birth Certificate can be used as proof of identity.

External Links

Link

Others

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