3 February 2018

Ethiopia: Awash to Double ATMs Across Ethiopia

The procurement could cost the Bank an estimated of 70 million Br

Awash Bank, the most capitalised and profitable private bank, is to double its automated teller machines (ATMs) to a little over 400 with an estimated cost of 70 million Br.

To supply the 200 ATMs to Awash, which netted a profit of one billion Birr last year, four companies passed the preliminary technical evaluation. The winning bidder will supply and install the machines, provide maintenance services, and technical assistance to Awash.

Moti Engineering, Computer Business Machines (CBM) System Integrator, Cashway Technology, a Chinese company which has been in the business since 2004, and Minaye Plc, a local company engaged in multiple business endeavours, will compete in the next technical evaluation.

The bid, announced a month ago, had initially drawn the attention of seven companies. But three of them did not submit their financial and technical offers.

The machines will be distributed across the country adding to the existing 2,304 ATMs and 8,284 Point of Sales (PoS) owned by the state and private banks. From the total, over half are owned by the Commercial Bank of Ethiopia (CBE).

These machines are majorly supplied by two competitors: Moti and CBM. Established in 2006, with a registered capital of 100,000 Br, Moti has 200 staff and service centres in 40 towns across the country. So far Moti has sold no less than 4,000 NRC brand ATMs to most of the banks, including the CBE and recently to Abay, Dashen, Berhan and Wegagen banks.

CBM, which has three offices in the country, installed over 700 Debold brand ATMs for CBE, Dashen, United, and Abyssinia banks, as well as Premier Switch Solution (PSS), a consortium of six private banks.

The new ATMs can accept international cards including Visa, MasterCard and China Union Pay. The terminals can also be accessed by the 3.6 million cardholders, four percent of the nation's total population, through an industry-wide consortium, Et-Switch.

The Consortium was established in 2011 by all commercial banks and the central bank with 80.5 million Br paid-up capital to integrate the operations of all ATMs and PoS run by the banking industry. This system enables all cardholders to use any ATM, irrespective of the bank, for a five Birr service fee on every 1,000 Br withdrawal.

The number of cardholders in Ethiopia stands far lower than neighbouring Kenya that has 15.4 million cardholders using the 35,500 PoS and 2,900 ATMs.

The most capitalised bank with 2.6 billion Br paid-up capital, Awash will announce the winning supplier in the next two months. It has 1.8 million depositors across its 316 branches scattered throughout the country.


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