Bank of Abyssinia (BoA) has awarded Deloitte Consultancy a contract for the study and design of its management strategy.
Deloitte, selected from four firms the Bank had shortlisted in September 2014, is expected to sign an agreement by the end of next week, Bank’s President, Mulugeta Asmare, disclosed, declining to give further comment until the signing.
Mulugeta, confirmed the winner but said, “We did not yet give them the letter of recruitment.”
Deloitte partners were not available for comment.
Such kinds of strategies are usually meant for application over a longer period according to Getnet Haile, Managing partner at Target business Consulting Plc.
“They might extend to five years,”Getnet told Fortune.
In preparing a strategy for institutions, especially in the financial sector, conditions such as the political, economic and other contexts need to be considered. It should, for instance, see the probability of the country’s banking sector being liberalised and consider the economic growth, Getnet explained.
The process started with a closed auction in May 2014, leading to a shortlist that included Deloitte Consulting, Ernst & Young Global, KPMG Consulting and Price Water House Coppers.
Details of the conditions under which Deloitte is to be contracted have not yet been revealed. However, an expert Fortune talked to, indicated that completion of a well-done strategy could take up to six months and cost the bank 300,000 dollars to 500,000 dollars. The major challenge will be data collection and compilation.
Bank of Abyssinia was established in 1996. It currently has 400,000 account holders, and generated 270.71 million Br profit after tax, in the fiscal year 2013/14. That same year it replaced Addisu Haba, its president for five years, with Mulugeta Asmare.
Mulugeta stated that he came to the position at a time when the Bank was in good standing and that his job would be to make sure that those achievements were kept up.
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