Hijra Bank S.C.

Premier Islamic / Interest-Free Bank in Ethiopia

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Hijra Bank S.C. is a private Ethiopian commercial bank that provides fully Sharia-compliant (interest-free) banking services. Founded to address the financial exclusion of Ethiopia's Muslim community, the bank operates strictly under Islamic banking principles and is recognized as a fast-growing, highly inclusive institution in the country's financial sector.

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History & Foundation

• Foundation & Launch: Hijra Bank was established and officially began operations on January 16, 2022, following the government's approval of full-fledged interest-free banking in Ethiopia.
• Inclusive Ownership: Unlike many financial institutions started by regional elites, Hijra Bank was founded with a broad base of over 9,000 shareholders. This foundational group includes small farmers, pastoralists, peasants, unbanked communities, and small traders from across the nation.
• Capitalization: The bank was established with a subscribed capital of 1.2 billion ETB, of which 700 million ETB was paid up at launch.
• Headquarters: The bank is headquartered in Addis Ababa, Ethiopia.
• Leadership: Dawit Keno Abagero serves as the Chief Executive Officer.

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Vision, Mission & Core Values

• Vision: "To be the Premier Partner in Ethical Banking."
• Mission: "To provide innovative and customer-centric sharia compliant banking service through inspired professionals and state-of-the-art technology while creating sustainable value to our stakeholders."
• Core Values: The bank places a strong emphasis on "Honest" as a core value, alongside an unwavering commitment to inclusion, fairness, and diversity across all of its operations.

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Current Scale & Reach

Since its recent inception, Hijra Bank has achieved rapid growth and national expansion:

• Network & Customer Base: The bank operates over 135 branches nationwide and serves more than 931,000 customers.
• Financial Performance: Total assets have grown to exceed 15 billion ETB, while customer deposits have reached approximately 12 billion ETB.
• Asset Quality: Historical reports indicate an exceptionally high asset quality, previously maintaining a non-performing financing (NPF) ratio of 0%.

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Sharia Compliance & Technology

• Sharia Advisory Committee: All financial products and services are periodically reviewed and approved by a dedicated 7-member Sharia Advisory Committee composed of Sheiks, imams, and respected religious scholars.
• Core Banking Technology: Hijra Bank is the only bank in Ethiopia utilizing iMAL, the first and only AAOIFI-certified Sharia-compliant core banking software solution.
• Awards: The bank was awarded the "Best Emerging Islamic Digital Banking Brand" for 2023 by the Global Islamic Finance Awards (GIFA) and "Best Islamic Retail Bank in Ethiopia" for 2022 by CAMBRIDGE.

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Products & Services

Hijra Bank offers a diverse portfolio of ethical, interest-free products tailored to individuals, traders, and businesses:

• Mudarabah: A profit-and-loss sharing partnership where the bank or investor provides capital, and the entrepreneur manages the business venture.
• Wadiah: Deposit, safekeeping, and trust accounts, which include specialized products like the Haramain Wadia Hajj and Umrah Savings Account.
• Istisna & Salam: Istisna provides progressive financing for manufacturing and construction projects, while Salam offers prepayment contracts for existing goods like agricultural products.
• Wakallah: Agency or representation contracts used in Islamic finance.
• Digital Banking: Through its "Omni Plus" platform, the bank provides centralized omni-channel solutions including Mobile Banking, Internet Banking, USSD, and ATM services.
• HalalPay: A Shariah-compliant digital payment solution designed to facilitate fast, cashless, and ethical financial transactions free from interest (riba).