Banking Technology Collaboration Expands
Local IT Dealer Awarded Br14 Million ATM Supply Contract
The 50 ATMs will be part of Premier Switch Solutions (PSS) – a share company with seven member banks
Nib International Bank (NIB), one of Ethiopia’s 16 private banks, has finally awarded a contract to Moti Engineering Plc, a local IT dealer, for the supply and installation of 50 Automated Teller Machines (ATM) worth 14 million Br.
NIB, which was established in May 1999, selected Moti for the supply of the NCR branded ATMs, and sent an award letter to the Company last Friday, September 26, 2014, with the deal expected to be signed within 15 days, according to sources close to the case. SS Communications (SSC), another local company, and a Lebanon-based IT vendor, Computer Business Machines (CBM), were also bidding, with the Wincore and Diebold brands, respectively.
The Bank, which, in cooperation with Awash International Bank SC and United Bank SC, has established a share company called Premier Switch Solutions SC (PSS) for the joint operation and management of ATMs and Point of Sale (POS) terminals, made a technical evaluation after which it rejected the offer from SSC, the source said. The new machines it will acquire will be part of the PSS.
The PSS was established in July 5, 2012, with 165 million Br in capital, by the three banks. It currently has seven member banks, including the Addis International Bank, Berhan International Bank, Cooperative Bank of Oromia and Lion International Bank.
Moti and CBM had offered to make the supply for 14 million Br and 14.4 million Br, respectively – approximately 280,000 and 288,000 Br a unit. The Bank made its choice of Moti after six months. Moti was established six years ago by six shareholders with a capital of 100,000 Br.
According to United States based website called howmuchisit.org, the average price of ATMs in the global market is estimated at 9,500 dollars, or 190,000 Br; other sources give a price range of 1,000 dollars to 25,000 dollars.
The Bank had a paid up capital of 27.6 million Br and an authorised capital of 150 million Br, with 717 Shareholders and 27 employees, when established in 1999. By June 2013, it had a paid up capital of two billion Birr, 3,894 shareholders and 2,265 employees at 77 branches spread throughout the country.
CBM, the Lebanese company, previously supplied 50 Diebold ATMs to the Bank of Abyssinia (BoA), in December, 2013, and is currently hoping to sign a deal with the Commercial Bank of Ethiopia (CBE) after winning a bid to supply 200 ATMs for 51 million Br, approximately 255,000 Br a unit, through a local partner.
So far, Moti has supplied 650 ATMs for the CBE, 70 for Wegagen Bank, 70 for Dashen Bank, 59 for Zemen Bank, 10 for Abay International Bank (AIB) and four for Berhan International Bank (BIB). Two weeks ago, the Company also supplied 25 ATMs to the Corporative Bank of Oromia (CBO) and, two months ago, 10 for the Oromia International Bank (OIB). It will have to deliver the 50 ATMs to NIB within 60 days of the contract signing.