EthSwitch, the national switch operator in Ethiopia, has been given the green light by its shareholders to increase its capital to 3 billion birr in an extraordinary general meeting held last week.
The new capital will be used to implement a revised five-year strategic plan, which will focus on fulfilling the demands of EthSwitch’s business and common infrastructure development requirements, improving financial capacity, constructing its Head Quarters building, and developing and implementing new service project plans.
According to EthSwitch’s Vice Governor, Solomon Desta, the company has made strategic changes to provide its services by expanding cooperation among all member financial institutions, increasing the common base development services of the payment system, and enhancing internal capacity.
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The company has linked its five-year strategy with the payment modernization process set at a national level, and the new capital will enable it to include newly opened banks that have a high interest in joining the company and increase the use of common infrastructure and digital payment platforms for existing shareholders.
“The proposal to increase EthSwitch’s capital was prepared in accordance with the Commercial Law and NBE directive, and the newly issued shares will be allotted to existing shareholders with preferred right of subscription while the remaining shares will be allocated to new financial institutions in the sector,” EthSwitch said in Press Release.
EthSwitch is owned by all banks (private and public) operating in Ethiopia, the National Bank of Ethiopia, MFIs, PIIs, and PSOs, and its mission is to “make payments simple and affordable.”