Six weeks after removing its four long-serving vice presidents, the Development Bank of Ethiopia (DBE) has introduced another major reform at the levels of directorates and branches.
Two weeks ago, in a letter announced on a notice board of the Bank, all employees including the current directors and branch managers were told to apply to head directorates and branches as a first step to the implementation of the restructuring. Upon this, any directors or branch level managers who failed to pass the screening will be removed from their post, according to the Management of the Bank.
“Upon approval of the Board of Directors, we have called for applications from all employees who would like to compete for the post of directorship and branch manager and fulfill all the criteria,” said Hailu Misganaw, acting communications director of the Bank.
Educational background, performance, and experiences were the major criteria to apply for the post, according to the new structure of the Bank. Four and six years of experience were required for masters and bachelor degree holders, respectively.
“Anyone deemed to fulfill the criteria can be a director or a branch manager,” Hailu said.
A committee which is tasked to screen the applicants was formed a week ago. The committee is composed of human resources departments and executives of the Bank including the vice presidents (VPs) and the President.
The restructuring is implemented based on a study done by the new management of the Bank, which is headed by Getahun Nana, the president of the Bank. Getahun came to the scene after the removal of the former president of the Bank, Essayas Bahire, who gave up his post after the order of the Prime Minister, Hailemariam Desalegn.
The study has reduced the number of directors from 33 to 28.
“As we did on the vice presidential positions, the reshuffling is also implemented in the directorial and branch manager levels,” said Hailu.
Although the Bank claims the departure of the VPs is part of the Bank’s restructuring plan, sources close to the case relate the problem to a disagreement with the President of the Bank over the non-performing loans (NPL) ratio.
“He perceives the NPL ratio would accelerate. Nevertheless, this was not accepted by the outgoing VPs who explained the rate could not reach to that level, referring to the nature of project finance, and their experience at the Bank,” a source told Fortune weeks ago during the removal of the VPs.
Getahun disagrees with the association of the reshuffle with the NPL ratio of the Bank.
“It would be silly to remove them with a difference over numbers,” he told Fortune a month ago.
First founded a century ago under the reign of Emperor Menelik II, as the Society for the Promotion of Agriculture and Trade, DBE has undergone several structural transformation. Ever since it was established, the Bank has gone through several changes, including changing its name seven times before its current form in 2003. With a capital of over 7.5 billion Br, the Bank has 2,500 employees who work at its 110 branches in 12 districts.
Last year, the Bank made an overhaul of its structure, appointing four vice presidents. Then, this year again, it assigned Getachew Waqe as vice president of Project Financing; Hadush Gebreegziabher as vice president of Corporate Service; Endalkachew Mihretu as vice president of Finance & Banking Management; and Haileyesus Bekele as vice president of Credit Management; in the place of the outgoing VPs.
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