As President of the Bank of Abyssinia (BoA), Mulugeta Asmare has overseen its growth and been at the helm of some impressive feats, not least of which include a 27Pct growth in profits last year. With 600,000 clients and 190 branches, he’s looking towards the future, with plans to increase paid-up capital and the use of banking technologies.
Perhaps his boldest decision to date has been to significantly increase the salaries of BoA employees. This increase, many argue, will have a significant impact on the pay scales of other banks and increase their operating costs. In the first of two interviews with private bank presidents this issue, we discuss the overall implications of the BoA’s decision to increase benefit package for employees.
The first of the two leaders we speak to, Mulugeta believes his bank’s pay increment is a positive development, arguing that it will lead to overall growth in the fledgling banking sector. EBR’s Ashenafi Endale spoke with him to learn more about his decision to increase employee pay and the overall state of affairs in Ethiopia’s banking sector.