17 August 2014

Ethiopia: Commercial Bank of Ethiopia Awards Local It Dealer for 4,000 Pos

The Commercial Bank of Ethiopia (CBE) has finally awarded SS Communication (SSC), a local IT dealer, with the supply and installation of 4,000 Point of Sales (PoS) worth 39 million Br; while CBM and M2M are still waiting for the final decision regarding 200 Automatic Teller Machines (ATM).

CBE selected SSC for the supply of VeriFone PoS machines and sent the awarding letter to the company last week, though the deal is yet to be signed, according to sources. Ephrem Mekuria, communications manager at the Bank denies this, saying that the selection is still in process.

The Bank's tender, announced in October 2013, had attracted four vendors for the ATMs and eight for the PoS machines; the bank's technical evaluation downsized the number of the bidders down to two in both categories. Accordingly, SSC and a Morocco-based company, M2M, were short listed for the supply of the PoS, and CBM and M2M for the supply of ATMs. M2M had the highest score in the technical evaluation.

The financial opening in July 2014 showed that SSC and CBM had offered the lowest prices for the PoS and ATM, respectively.

M2M and CBM offered around 58 million Br with a small price difference between them, with CBM proposing the Debold and M2M the NCR brands. Both SSC and M2M also proposed supply VeriFone PoS machines for 39 million Br and 40 million Br, respectively.

Previously, CBM has supplied 50 Diebold ATMs for the Bank of Abyssinia (BoA) on December 7, 2013. SSC, a local IT company established nine years ago, is working in partnership with BPC Banking Technologies, a Swiss company, on the implementation of the National Electronic Funds Transfer (NEFT) for all 16 private commercial banks in the country, a project of ET- Switch SC. The system is planned to provide all banks with an integrated transaction system to transfer funds electronically, clear cheques among themselves and share each other's ATMs and PoS facilities.

M2M signed a deal with CBE in 2012, for the supply of 400 ATM and 4,000 PoS machines for eight million dollars and 37 million Br, respectively. Currently, the bank operates 433 functional ATMs and 244 PoS.

Established in 1942, CBE currently has 832 branches with 18,542 employees across the country. The bank owns 242.7 billion Br in assets, 79.65pc of which is funded by deposits from its eight million account holders. It reported gross profit of 9.7 billion Br from a gross income of 17.2 billion Br in the just ended fiscal year 2013/14, according to the performance report it released of the Bank, released two weeks ago.

The Bank plans to deploy 800 ATM and 10,000 PoS machines by the end of the 2014/15 fiscal year. It has announced a new tender for the supply of 200 ATMs and 2,000 PoS two weeks ago.

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