Ethiopia: Commercial Bank Targets 17 Sites for New Branches

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Addis Fortune (Addis Ababa)

5 August 2008
Posted to the web 5 August 2008

Wudineh Zenebe

The Commercial Bank of Ethiopia (CBE) has requested the Addis Abeba City Administration to provide it with 17 sites on which to construct new branch offices, as well as for the relocation of offices that it currently rents.

The sites the CBE has targeted for these constructions are in Senga-Tera, Ayer-Tena, St. Joseph Church, Selassie (Amist-Kilo), Lafto, Gotera, Gurd-Shola, Tewodros Square, Africa Avenue (Bole Road), Kirkos, Wello-Sefer, plots in front of Bunna-ena-Shayi Building near Mexico Square, and Ledeta Court areas. The size of the plots requested range from 1,500 to 2,000Sqm, and the bank envisages erecting the buildings in accordance with the city's master plan.

"If we secure these plots and construct all the buildings, all our operations in Addis Abeba will be in our own buildings," an official of the bank told Fortune.

The 65-year old CBE has 205 branches across Ethiopia, 46 of which are in the capital. Seventeen of the branches in Addis Abeba are located in facilities rented from private establishments and individuals. This is a scenario the bank wants to end for two reasons: the soaring rental fares, as well as the inconvenience of such rented facilities as relates to banking and security, sources at the bank told Fortune.

The bank's executives have approved a plan to construct the new buildings from which their branches would operate, and to rent out the extra space in them.

Previously, CBE had secured 7,000Sqm land from the then Caretaker Administration of Berhane Deressa for the construction of a new 30-storey building for their headquarters. This plot is situated in Central Kirkos District, at the corner of Ras Desta Damtew and Yohannes Streets, next to Ethiopia Hotel.

The bank had signed the lease agreement for this plot with the city's Lease Board in June 2006, during the time of Arkebe Oqubay's Provisional Administration. However, it did not secure the land at that time because of a controversy with other business entities that were interested in the plot. The bank had a particularly contentious disagreement with Almeta Impex Plc, a company that had previously been granted part of the land. CBE finally acquired the plot, towards the remaining months of the Caretaker's term.

Preparations for construction developments on the tract have begun, as existing structures are being demolished. But experts have told the bank that there is still need for an additional 3,000Sqm. Subsequently, the bank has submitted a request to the new administration, led by Mayor Kuma Demeksa, for this extra area. If accepted, this request will result in the demolition of nearby structures, including Beruk Clinic. Also, development of the proposed sites for the new 17 branches' edifices will affect private properties, as well as houses owned by Kebeles and the Agency for Government Houses.

The Lease Board of Kuma's administration has, during its first meeting, passed decisions on the course of action to take with regards to allocation of land for lease, and during its second, ordered the city's Land Development and Administration Authority to select priority files to be presented before the board.

However, the files that the land administration's management had selected were sent back to experts by the Lease Board, for the latter needed further clarity on some files which were vague, according to knowledgeable sources.

Of the about 200 files expected to be presented to the Lease Board's next session not as yet scheduled , seven of the 17 plots CBE requested are included on the list, namely, the ones in Lideta, as well as those in Tewodros and Mexico squares.

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