Zemen Bank, a publicly owned Ethiopian lender, raised its deposit rate to 5.5 percent on balances above 25,000 Ethiopian birr ($1,500), according to an e-mailed statement today.The announcement comes after the central bank raised the minimum deposit rate to 5 percent from 4 percent on Dec. 2.
The move was part of a bid to boost savings to fund a five- year plan that targets annual growth of as much as 14.9 percent. Ethiopia’s savings rate was 2.3 percent of gross domestic product in 2009, according to the World Bank. The rate in neighboring Sudan was 25.7 percent.
Rates on higher balances are now 5.75 percent, the Addis Ababa-based bank said. The annual inflation rate rose to 10.6 percent in October, according to the Central Statistical Agency.
To contact the reporter on this story: William Davison in Addis Ababa via Johannesburg atpmrichardson@bloomberg.net.
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