The National Bank of Ethiopia (NBE) is acquiring IBM hardware and database solutions for close to a million dollars from local suppliers Afcor PLC. The two parties inked a deal on Wednesday April 10, 2013.
Looking to update its technology systems, the NBE had set out to replace its core banking, data storage and hardware systems for the 2012/13 fiscal year. Six months ago, it contracted the Indian company Polaris to replace its old CORE Banking system for 3.4 million dollars.
Changing its hardware, software and database storage systems was next on NBE’s list for which it floated an international tender in December 2013. Though the intial deadline for the closing was January 14, it was extended for two weeks upon the request of companies, who complained that it would be difficult to get appropriate rates from manufacturers in such a short period of time as it was the holiday season.
Twelve companies bought bid documents, but only three submitted offers. Other than Afcor; United System Integrators (USI), which supplies Hewlett Packard (HP) hardware, and Boston Consulting, supplier of Oracle, also participated. All three bidders are local companies which have experience working with private commercial banks in the country.
The NBE conducted evaluations offers with the assistance of the Information Network Security Agency (INSA). The highest payment requested amongst the bids was 1.4 million dollars. One of the companies was disqualified at the beginning, and two of the companies went head to head.
Afcor came out on top on both the technical and financial evaluations, according to Gizaw Tulu, NBE’s chief information officer, who is managing this project. The company, based inEthiopia, was established in 2005 by two partners. It has supplied hardware and storage components for Dashen Bank.
It is now expected to install the hardware, including the servers, by the end of May, according to Gizaw.
Overall Afcor is expected to supply “six or seven IBM 3650-M3 servers”, according to a source involved in the project.
The company is also expected to provide Oracle software for data storage and related services including interfacing with the bank’s newly acquired CORE banking system.
The Bank used an NCR system, supplied by Global Computing Solutions (GCS), for 10 years. GCS is currently operating the Unified Billing System through a sister company Kifiya.
“The technology has run its course and needs an update,” Gizaw told Fortune. “The new system is much higher in capacity and modernity compared to the previous one.”
The information technology infrastructure at the NBE is expected to handle operations specific to the Bank, including payment and settlement of government accounts, money issuance and management of the country’s foreign currency reserves.
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