• info@dynamicmfi.com
  • (+251)115577285

Board

Ato Tesfaye Fente Jemberu

Board Chairperson

Message from the Chairperson

Dear Shareholders

Today, as we convene the 16th Annual General Meeting of Dynamic, I warmly welcome each one of you. It is always a pleasure to connect with you all and it is a privilege to host you today. On behalf of the Board of Directors, I want to thank you for making the time to join us. Your trust and support over the last 14 years have given us the confidence to push ourselves, past challenges and complexities, to deliver competitive returns and consistent value for you year after year.

During the 2022/23 fiscal year, we had healthy revenue growth at _____%, totaling ETB__________. Profit margin for the year reached ETB____________ an increase of ______% from the year before. Our branches and number of employees have reached 28 and 174 respectively.

The Board has recommended, once again, to reinvest the net profit generated from last year’s operation and increase the company’s paid-up capital. This is critical because Dynamic is facing liquidity problem due to intermittent closure of branches and disruption of operations in the Amhara region.

Although it is a step in the right direction, reinvesting net profit will not suffice to overcome the constraint of capital for continued growth and sustainability of the company. Thus, the Board also recommends to issue new shares worth ETB 880 million and sell to the public over the next 5 years. This combined with the already fully subscribed share capital of ETB 120 million will raise the capital to ETB 1 billion. This ambitious plan entails a capital growth of more than 8-fold and allows existing shareholders to buy as many additional shares as they wish. Besides, it gives Dynamic the opportunity to sell shares to the public and raise capital using the infrastructure of the capital market under formation.

While Dynamic emerged unharmed by the state of uncertainty brought about by the Covid-19 global pandemic and the war in Tigray, other MFIs, like Dedebit, had succumbed to it. The current state of emergency declared and war being waged in the Amhara region are, unfortunately, adversely impacting 17 of the 28 branches and 80% of the company’s operation. With the 3-year term of office of the existing Board of Directors coming to an end, election of a new Board of Directors is on the agenda. We believe appointment of directors with experience, influence and financial acumen is pivotal not only to steer the company through these trying times but also to seize every opportunity to emerge out of it stronger than ever and well-positioned to thrive and to help our customers thrive in challenging times.

We are deeply grateful to our employees for their unwavering commitment, effort and dedication in putting our customers’ needs over and above their personal pains and losses. Their grace and fortitude made us proud. We share credit for our performance over the past year with them, our customers and regulatory bodies at all levels. It is all of their generous support and guidance that shines the light on the path forward. As ever, I am indebted to our shareholders who join us in looking forward to a brighter future.