43+

Awash Bank has become the first Bank in Ethiopia to issue credit cards. The news which was released today at SkyLight Hotel will see Ethiopia’s biggest private Bank extend a line of credit for its 9 million customers.

Speaking at the ceremony, the CEO of the bank, Tsehay Shiferaw, noted that Awash Bank is working to make its service delivery accessible, and comfortable.

As opposed to debit cards, payment card that makes payments by deducting money directly from a consumer’s checking account, a credit card is a card issued by a financial institution, typically a bank, and it enables the cardholder to borrow funds from that institution. Cardholders agree to pay the money back with interest, according to the institution’s terms.

According to officials at the bank, the credit card service has various products designed for the needs of customers from small businesses to corporations and is already being issued.

The news comes in the same week the bank made a landmark decision in which it passed almost a unanimous decision to raise its capital to one billion USD (55 billion birr), making it the most capitalized bank in Ethiopia.

Awash Bank has around 3 million debit card holders.

43+

4 Comments

  • Beriso Lenchamo, November 29, 2022 @ 6:30 pm

    Great move but should consider the context of the majority of the customers

    1+
    • Isatu, December 1, 2022 @ 10:07 pm

      I think this credit may lead to easy credit rip off! The Government should monitor, and regulate such moves by banks.
      A store card can be issued by a certain store, but most of the time it is under one of the Major credit card providers such as Visa, Master card.
      Credit cards need to have the following futures to protect the customer who is the card holder and the merchant who would be willing to accept the credit card as means of payment.
      The person who is issued with the credit card should have a good history of credit or financial management, that will protect the merchant who will let the presenter of the card have any thing he purchase as long as he stay with in his credit limit, as set up by the issuer of the credit card.
      The issuer of the bank is also expected to give a grace period to the card holder to be able to pay what he owes in full with out any Interest.
      I may not be able to document all the pit falls for the credit card issuer, the card holder, and the Merchant here but this is not some thing that need to be ignored as this can cause lots of unnecessary hard ship on specially people who are not well versed with finance.
      Go easy awash Bank, and next time you open a ceremony make sure every thing be visible as it may make feel that you are hiding some thing from the public.
      Why is the guy behind put his hand to hold the drapes stay in place so that we may not be able to see what is under the curtain.

      PS can you brief the public if you have lined up merchants, Government institutions, etc to accept your Credit Card!

      0
  • Kuma H, December 1, 2022 @ 11:17 am

    Good news

    0
  • Gemechu Balcha, December 2, 2022 @ 1:09 pm

    How to get credit card

    0

Leave a Reply