ZamZam Bank shareholders to turn to other investment

Addis Ababa, Ethiopia - Over 74 percent of ZamZam Bank shareholders, a bank that was under formation in the guiding principles of Islamic banking but was stopped by the directive of the National Bank of Ethiopia, have decided to divert to other investment ventures, this week.

According to the paper based assessment that the board has conducted during the week, on average the majority of the shareholders opted to redirect their shares towards other possible investment ventures the details of which was revealed only to the shareholders.  According to the information obtained from the board, only 19 percent want to collected their shares and leave.

Chairman of the board, Ahmed Hussien (Ph.D.), told The Reporter that only 7 percent of the shareholders preferred to engage in ordinary banking service on the basis of the National Bank’s guideline and regulation.

According to the Board chairman, shareholders’ decision that was reflected above was compiled from last Saturday to Thursday. “However, the process of gathering the response of other than the 2,000 plus shareholders present at the Saturday’s meeting is still underway.”

Until the last date of the NBE’s announcement, it was generally understood that Zemzem was going to setup the first none-interest bearing bank in Ethiopia. And the organizing committee has managed to mobilize some 137 million birr in the form of paid up capital while 337 million birr was pledged.

The bank which was composed of 6,500 shareholders, gave the three options to its members in a bid to present them with the opportunities to make decisions based on their personal will, he said.

Source: The Reporter Ethiopia

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