Ethiopia establishing a Credit Union for the Defence Forces

By De Brihan Media Staffer

 17 March 2012

The Ethiopian Ministry of Defence is working to establish a Credit and Saving Institution for the Defence Forces sources told De Birhan. Similarly, the Defence Ministry has been busy for the past two years forming an Army Foundation in line with the Credit and Saving Institution with the aim of improving the quality of life through credit and saving facilities for soldiers to build their houses, and avail other services at a cheaper cost or with minimum contribution. The Institution will offer credit, saving and banking services to members of the Defense Forces.

The Army Foundation is expected to have a cooperative business model and supply authorised products, services and benefits to employees of the Defense Forces and their legal dependants that the state does not provide through the normal conditions of service.  It is expected to be a self funded Foundation mandated by the Minister of Defence to provide the army with a variety of the best possible and better than market-related products, services and benefits.

The source also stated that the Foundation might provide life insurance, as well as products which are aimed at improving quality of life in terms of housing and education. The membership of the Institution on the otherhand, would be limited to the Ethiopian Defence Force members but might be open to the public in the future, sources added.

Similar foundations and credit and saving institutions exist within many armies of African countries. They are mostly aimed at keeping the rank file intact and their welfare.