Ethiopia: Edif to Develop Cutting Edge Payout Mechanism

- The Ethiopian Deposit Insurance Fund (EDIF) has announced that it is actively developing a cutting-edge payout mechanism to safeguard and satisfy novice savers.

EDIF's CEO Desalegn Ambaw (PhD) told The Ethiopian Herald that In order to guarantee members' long-term benefits, efforts are being made to update its operational system. Given the economic circumstances of the nation, the fund provides a guarantee of up to 100,000 Birr, taking into account the fact that 97% of the population lives below the poverty line.

Over the last two years, Desalegn said through the initial and annual premium payments of 0.4% and 0.3%, respectively, ENDF has amassed over 14 billion Birr. For those with larger deposits, the latter percentage rises. A method for quarterly payments has been created to help members who might not be able to pay their annual fees all at once."As we focus on investment and fund management, EDIF invests in government Treasury bills to obtain additional financing alongside collecting premiums," he added.

In Ethiopia, Desalegn went on saying that it takes 90 days to respond to community requests, but the global norm is to pay within 7 days. This highlights how Ethiopia must use technology to update its system.

Currently, the EDIF's payment agent is the Commercial Bank of Ethiopia (CBE), as the bank covers all areas of the country, making it easily accessible to the people, he stated.

Among the various future activities of the EDIF, Desalegn emphasized that building capacity, serving the community with proficient citizens, utilizing technology, and increasing awareness are the priority issues for providing quality service and ensuring competitiveness on the international stage.

Ethiopia is the 148th country to join the deposit insurance fund worldwide, and Desalegn noted that drawing important lessons from nations with better performance in the sector will be ongoing.

Read the original article on Ethiopian Herald.

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