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Debate: Foreign Banks enter Ethiopian market - pros and cons

Post by eden » 14 Jun 2019, 09:35

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Re: Debate: Foreign Banks enter Ethiopian market - pros and cons

Post by Ethoash » 14 Jun 2019, 10:43

long time ago someone ask me in this forum and i give my expert answer for this question .. you can google ER.. if u want too..

but here is what i said that time

Yes, they should enter but with few condition

1. all Ethiopian bank should be given warring that the foreign banks are coming so they should be ready not sleeping
Last edited by Ethoash on 15 Jun 2019, 15:23, edited 1 time in total.

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Post by Ethoash » 15 Jun 2019, 11:04

farther reading

Last edited by Ethoash on 15 Jun 2019, 15:24, edited 1 time in total.

Naga Tuma
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Re: Debate: Foreign Banks enter Ethiopian market - pros and cons

Post by Naga Tuma » 15 Jun 2019, 15:18


I have no expertise in this debate. My understanding about it is very intuitive.

My intuitive understanding about it reminds me the now evidently outdated Oromo rationale that "we are the majority in Ethiopia and Ethiopia can not be democratized." These days, it sounds more that it can be democratized than otherwise.

I do not know if it is the government's policy or regulation in the banking industry or the customers of the bank that are more of the shakers and makers of private banks. I remember an interesting discussion in an operations research course during Alan Greenspan's era how a quarter percent change in the federal interest rate can significantly affect the stock market, a different but related sector.

When I ran into this thread, I was hoping to hear the debate with some metrics. One of the questions that remain unanswered for me after listening to the interview and discussion was about the mutually beneficial infrastructure and banking sectors. Which one is more of a catalyst for the other?

I am positive that there is by now enough statistical data from the private banks in Ethiopia to explain to lay people like me using some standardized metrics how the factors that make and shake them work. If the private banks do not wish to make their data public, I am positive that realistic scenarios can be used to explain the concept using easily identifiable metrics.

Absent that kind of data in the debate, my intuitive reaction is how about the lost opportunity of getting a head start and gaining more and solid experience in the industry by putting specific policies in place early enough? I suppose the dominant customer base for the industry is the population of the country, a given variable in the equation.

Recently, I have been reading the term digital in the discussions here and there. It reminds me the digital revolution in the west a few decades ago, which was at a time when various liberation fronts were fighting in the desert of Ethiopia. Without discounting their determination to struggle for the causes that they believed in, well founded or unfounded, and their ቆረጣ knowledge that they used to take on the bigger Dergue army, I can imagine the opportunity that was lost in getting a head start and keeping up with the digital revolution.

When I read a while back one of Thomas Friedman's books titled The World is Flat, I remember him suggesting that the Indians taught their young generation in math and science and when the digital revolution arrived at their doorsteps, for them it was like walking out to the flat world well prepared for computer science.

Just yesterday, I watched an interview with the CEO of Google who looked one of those who were ready then and rose to run a big company like Google with an enormous demand to go elsewhere in the world to advance his business if regulators in the US made it hard for them to continue their business effectively and efficiently. That is an inspiring leadership in business.

As I indicated from the beginning, my reaction is a lay person's view of the subject matter. Then again, I wish to have my intuition about opening it up more, which I remember expressing a while back on this forum, proven otherwise.

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