Photo by Anteneh Aklilu Getachew Beshahwred (MBA, FCA, PMP, BFP, Cert. CII, MCSI) is the Founder and Chief Executive Officer of Bruh Finance, Ethiopia, and the Managing Director of GB & Co. Chartered Accountants and Management Consultants in London and the London International School of Finance.
Getachew is a business advisor with qualifications and wide and long experience in Management Consultancy, Training, Project Management as well ass Accounting, Auditing and Taxation. He has excellent communication skills. Has appeared on TV, Radio, and Newspapers and has been a speaker at conferences.
He, in addition to his role at GB & Co, is currently the Chief Executive Officer of BRUH Finance, a Financial Training and Consultancy company based in Addis Ababa, Ethiopia. He also regularly writes for an English weekly newspaper in Ethiopia and writes commentaries on national and international issues on social Media too. Getachew graduated from Addis Ababa University in 1984 with a degree (with Distinction) in Accounting.
He was awarded the Chancellor’s Medal for being the Outstanding Student of the Year from the College of Social Sciences. He taught Accounting for three years at the Department of Accounting, Addis Ababa University before he left on a Scholarship, in 1987, for a postgraduate study at Manchester University, United Kingdom. He graduated in 1989 with an MBA from Manchester Business School.
Getachew qualified as a Chartered Accountant in 1996 and served as a Supervisor, Manager and Director at different organisations before he set up GB & CO Limited; a firm of Chartered Accountants based in London. In addition to Auditing, Accounting and Taxation, GB & Co, in association with the Chartered Insurance Institute (London), the London Institute of Banking and Finance, the Chartered Institute of Securities and Investment (London) and Intuition provides executive and professional training to Ethiopian Insurance Companies and Banks. A recent Directors’ Training for Board Members of Nile Insurance, Ethiopia was held at the Chartered Insurance Institute, London.
Getachew is a Fellow of the Institute of Chartered Accountants in England and Wales, FCA, and Member of The Chartered Insurance Institute (London), Cert. CII, The Chartered Institute for Securities and Investment (London), MCSI, and The Project Management Institute (USA). PMP Capital : How do you view the business competition between financial insurers? What can be done to promote and control business competition in the insurance market? Getachew Beshahwred: The business competition between financial insurers in Ethiopia is currently characterized by a relatively low level of product differentiation.
Most insurance companies offer similar products to a largely overlapping customer base within a similar geographical area. This creates a situation where the competition is primarily based on price rather than on the unique value propositions of the products or services offered. Unfortunately, this kind of competition, which focuses on price-cutting, often leads to reduced profit margins, and in the long run, it can stifle innovation within the industry.
To foster a more vibrant and competitive insurance market, several strategic actions can be taken. Firstly, the leadership within these companies must adopt a forward-thinking mindset, actively seeking to innovate and differentiate their offerings. Insurance firms need to aspire to reach untapped segments of society, particularly in the vast rural areas of Ethiopia where insurance penetration is still minimal.
This effort will require significant investment in raising awareness about the benefits of insurance products, tailored specifically to the needs of different community groups. Secondly, there is a need for the development and introduction of new, innovative insurance products. For instance, during my time in the UK, I encountered insurance products that were designed to cover specific, short-term risks, such as a single trip that was perceived as particularly risky.
Similar creative approaches could be adapted to the Ethiopian context, where the needs of consumers might vary significantly. Professionals who are able to think outside the box and design products that address specific, unserved needs could transform the market landscape. Lastly, the establishment of an independent regulatory body could be beneficial.
While it may not be essential, such a regulator could help ensure fair competition and potentially open up new avenues for innovation. This body might also facilitate the introduction of new products and business practices, while still providing oversight to protect consumers. It’s encouraging to see that efforts are being made toward establishing such a regulatory framework.
However, one of the significant challenges that the insurance industry faces is the shortage of skilled professionals. Innovation and competition stem from the ability to think creatively and implement new ideas, and this requires a workforce that is not only technically proficient but also imaginative and bold. Ironically, while insurance is an industry that fundamentally revolves around managing risk, many companies within the sector are hesitant to take risks in their own business practices.
This mindset needs to change if the industry is to thrive and contribute meaningfully to the national economy. Capital : Financial institutions in Ethiopia play an important role in the country’s economic growth. What is expected in both domestic and international markets to achieve such objectives? Getachew: Financial institutions are the gears that drive the engines of Ethiopia’s economy.
They play a critical role in transforming savings into investments across various sectors such as agriculture, manufacturing, and services. These institutions finance everything from large-scale industrial projects to individual homes and vehicles. Insurance companies, in turn, provide the necessary safety nets that protect these investments, and with the anticipated emergence of capital markets, even the smallest savings could be mobilized into productive investments.
In the domestic market, financial institutions must focus on strengthening their capacity to compete effectively. This involves several key areas: enhancing operational efficiency, adopting advanced technologies, and improving customer service. The impending arrival of foreign banks will bring intense competition, with these entities coming equipped with substantial financial resources, cutting-edge technology, and sophisticated management practices.
Ethiopian financial institutions must, therefore, accelerate their innovation efforts and focus on intentional human capital development to remain competitive. They should leverage the trust they have already built within the local market while expanding their service offerings to meet the evolving needs of their customers. On the international front, Ethiopian financial institutions need to establish and maintain strong relationships with global counterparts.
This includes engaging in partnerships that facilitate knowledge exchange and provide access to international capital markets. Additionally, adhering to global standards and best practices in financial management will be crucial in attracting foreign direct investment (FDI) and ensuring sustainable growth. Capital : What needs to be done to create a competitive insurance market and build insurers that will contribute significantly to the country’s economic growth? Getachew: To build a competitive insurance market that significantly contributes to Ethiopia’s economic growth, several critical steps need to be taken.
Firstly, the industry must focus on expanding its reach. Currently, a large portion of the Ethiopian population remains uninsured, particularly in rural areas. Insurance companies should prioritize initiatives aimed at increasing awareness about the importance of insurance and the benefits it offers.
This could involve community outreach programs, partnerships with local organizations, and the development of products that cater specifically to the needs of underserved communities. Secondly, product innovation is key. The insurance market needs to move beyond offering standard products and instead focus on developing a diverse range of offerings that address specific needs.
For example, micro-insurance products tailored to low-income individuals or specialized insurance for emerging industries could open up new markets. Moreover, integrating technology into product development and service delivery could enhance accessibility and efficiency, making insurance products more appealing to a broader audience. Additionally, addressing the skills gap in the industry is essential.
As I mentioned earlier, the shortage of skilled professionals is a significant barrier to innovation and growth in the insurance sector. Training programs, like those offered by Bruh Finance, are vital in this regard. By equipping professionals with the necessary knowledge and skills, we can ensure that the industry has the talent it needs to innovate and grow.
At Bruh Finance, we are deeply committed to advancing professional development in the financial sector. We have already graduated 79 professionals with the Certificate in Insurance (cert. CII) qualification of the Chartered Insurance Institute (CII), London.
An additional 74 professionals are currently pursuing the same certification. Currently, 83 individuals are enrolled in our capital markets programs, with 35 set to graduate with a Level 3 Capital Markets-Securities qualification. This certification will enable them to obtain licenses from the Ethiopian Capital Markets Authority (ECMA), positioning them to play a pivotal role in the development of the country’s financial markets.
In addition, we have recently launched a CII diploma program for 50 professionals, which is expected to double the number of diploma holders in Ethiopia within the next 18 months. These initiatives are crucial in building a competitive insurance market that can significantly add value to the country’s economic growth. Capital : Why can’t insurers increase alongside the ever-increasing number of private banks? Getachew: The disparity in growth between insurance companies and private banks in Ethiopia can be attributed to several factors.
One of the main reasons is the difference in public perception and understanding of banking versus insurance. Banking services, particularly those related to savings and loans, are often seen as more immediate and tangible in their benefits. In contrast, insurance is sometimes perceived as a more abstract concept, with benefits that are not as directly visible unless a claim is made.
This perception has hindered the widespread adoption of insurance services, particularly in rural and underserved areas. Moreover, the insurance industry in Ethiopia has historically been slower to innovate compared to the banking sector. While banks have aggressively expanded their branch networks, introduced new products, and adopted digital banking platforms, the insurance sector has lagged in these areas.
This lack of innovation has contributed to the slower growth of insurance companies. Additionally, regulatory and operational challenges have played a role. The insurance sector has faced more stringent regulatory requirements, which, while necessary for consumer protection, have also slowed down the pace of expansion.
Furthermore, the absence of a robust insurance culture, where individuals and businesses view insurance as a necessity rather than a luxury, has limited the growth potential of the industry. To bridge this gap, insurance companies need to take proactive steps to increase public awareness about the importance of insurance. They must also focus on product innovation and operational efficiency to offer more value to customers.
The introduction of micro-insurance products, digital insurance platforms, and customized offerings could help insurance companies grow alongside private banks. Additionally, a concerted effort to educate the public on the benefits of insurance, much like what has been done in the banking sector, could lead to increased adoption and growth in the industry. Capital : What is the role of the National Bank of Ethiopia in the development of the country’s economy? How neutral is the National Bank expected to be? Getachew : The National Bank of Ethiopia (NBE) plays a pivotal role in the development of the country’s economy.
As the central bank, its primary responsibilities include regulating the financial sector, controlling monetary policy, and ensuring financial stability. The NBE’s actions directly influence inflation, interest rates, and the availability of credit, all of which are critical to the health of the economy. Recently, the NBE has embraced interest-based monetary policy, a significant shift aimed at controlling money supply and inflation through the setting of interest rates.
This approach requires a highly professional and independent workforce within the NBE that understands the complexities of the market and can make informed decisions that keep the financial system sound and stable. The neutrality of the NBE is of utmost importance. As the regulator of the financial sector, the NBE must operate independently from political pressures to ensure that its decisions are made in the best interest of the economy.
An independent central bank can better manage inflation, stabilize the currency, and foster an environment conducive to sustainable economic growth. This independence is particularly crucial in light of the recent macroeconomic reforms, such as the shift to a market-based foreign exchange (FX) rate. The shift to a market-based FX rate represents a major reform for the Ethiopian economy.
However, the rapid pace of its implementation has created significant challenges, especially for the most vulnerable segments of the population and an economy grappling with an average trade deficit of $14 billion. A more gradual transition could have alleviated some of these difficulties, but with the change now in effect, it’s crucial to focus on policies that can mitigate the negative impacts on those most affected. One effective approach could involve introducing targeted subsidies to alleviate the burden on some sectors of the economy, low-income individuals and families disproportionately affected by rising prices.
It’s crucial not to worsen the situation by restricting forex-intensive consumption. Instead, resources should be strategically allocated to production sectors that generate foreign exchange. Regarding privatization, especially of successful state-owned enterprises like Ethiopian Airlines, decisions should be driven by sound economic rationale rather than merely ownership considerations.
Ethiopian Airlines’ trajectory and performance forecasts suggest that professional and efficient leadership and management, rather than ownership, is the key variable influencing success. Globally, China’s successful state-owned enterprises, which contribute to 5% of the world’s economy, further demonstrate that state ownership is not inherently detrimental to economic performance. Efforts to deregulate and reduce government involvement must also be carefully balanced against their potential impacts on societal welfare, equitable wealth distribution, and the broader economy.
The NBE’s role in this context is critical. By maintaining its neutrality and focusing on the long-term stability of the economy, the NBE can help guide the country through this transitional period. Its ability to manage the balance between controlling inflation and supporting economic growth will be crucial in determining the success of these reforms.
Capital : What are the conditions for the insurance industry with the country’s emerging economic growth, high number of private and public projects, and FDI? Getachew: Ethiopia’s economic landscape has transformed rapidly over the past two decades, with a surge in private and public projects, increased foreign direct investment (FDI), and robust economic growth. However, this growth has recently slowed down, highlighting the need for the government to create conditions that can reinvigorate the economy. This environment presents both opportunities and challenges for the insurance industry.
On the one hand, the increasing number of infrastructure projects and the growth of various sectors such as construction, manufacturing, and agriculture create significant opportunities for the insurance industry. These projects require comprehensive insurance coverage, ranging from construction and property insurance to liability and business interruption insurance. As more foreign companies enter the market through FDI, the demand for insurance products that meet international standards is likely to rise.
However, the insurance industry must be prepared to meet these demands. This requires not only the development of new products tailored to the needs of these projects and investors but also the enhancement of operational efficiency to handle the increased volume of business. The industry must also ensure that it has the necessary expertise to assess and underwrite complex risks associated with large-scale projects and international investments.
Moreover, the growth of the economy and the increasing number of projects also highlight the need for a robust regulatory framework. The insurance industry must operate within a well-defined regulatory environment that ensures transparency, fairness, and accountability. The National Bank of Ethiopia and other regulatory bodies play a crucial role in this regard, providing the oversight needed to maintain the integrity of the market while also encouraging growth and innovation.
At the same time, the industry must address the challenges posed by the shortage of skilled professionals. As the demand for more sophisticated insurance products increases, so does the need for professionals who can design, sell, and manage these products effectively. This is where institutions like Bruh Finance come in.
We have taken proactive steps to address this skills gap by offering training programs that equip professionals with the knowledge and skills they need to succeed in this rapidly changing industry. Capital : What can the new government’s macroeconomic reform and implementation bring to the industry? How do you view the process? Getachew: The new government’s macroeconomic reforms in the long term have the potential to bring significant changes to the insurance industry, as well as to the broader economy. This, in turn, can attract more foreign investment, spur economic growth, and create new opportunities for the insurance industry.
However, the implementation of these reforms must be handled carefully to avoid adverse effects on the most vulnerable segments of the population. The move to a market-based FX rate has already led to some economic dislocation, particularly in the form of increased prices for goods and services. For the insurance industry, this means that the cost of imported goods and services, which are often part of the insurance equation, will increase, potentially leading to higher premiums for certain types of insurance.
To mitigate these challenges, it is essential that the government and the insurance industry work together to develop policies that protect the most vulnerable while also encouraging growth and innovation. This could include targeted subsidies for low-income individuals or small businesses, as well as initiatives to promote financial literacy and awareness about the benefits of insurance. Moreover, the government’s broader economic policies, including efforts to stabilize the currency, control inflation, and promote investment, will have a direct impact on the insurance industry.
A stable economic environment is essential for the growth of the insurance sector, as it provides the predictability and confidence that businesses and individuals need to invest in insurance products. Overall, I believe that these reforms, if implemented carefully and with the necessary support mechanisms in place, can create a more dynamic and competitive insurance market. The process will require collaboration between the government, the private sector, and civil society to ensure that the benefits of these reforms are broadly shared and that the potential downsides are effectively managed.
Capital : The lack of skilled professionals in the insurance sector is where the country is tested by many, so what is Bruh Finance doing in this regard? What made you enter these programs? Getachew: The shortage of skilled professionals in the insurance sector is indeed one of the most pressing challenges facing the industry today. This shortage not only limits the growth potential of individual companies but also constrains the development of the industry as a whole. Without a sufficient number of trained professionals who understand the complexities of insurance, it becomes difficult for companies to innovate, expand their offerings, and effectively serve their customers.
At Bruh Finance, we recognized this challenge early on, and we made it our mission to address the skills gap through targeted education and training programs. Our decision to enter this field was driven by a deep understanding of the needs of the industry and a commitment to contributing to the development of a strong and competitive insurance market in Ethiopia. Building on this success, we have recently launched a Chartered Insurance Institute (CII) Diploma program for 50 professionals, aimed at providing a comprehensive education in both the theoretical and practical aspects of the insurance industry.
This initiative is expected to double the number of diploma holders within the next 18 months, significantly broadening the pool of qualified professionals in the sector. In collaboration with the Association of Ethiopian Insurers and the Institute and Faculty of Actuaries, London, we are also expanding our offerings to include qualifications in Actuarial Science and in Islamic Finance with the Chartered Institute for Securities and Investment, London, further enhancing the expertise available in the industry. Our programs are crafted to emphasize both practicality and relevance.
We understand that education should go beyond theoretical knowledge, equipping individuals to apply what they learn in real-world scenarios. To achieve this, our courses incorporate case studies and hands-on training, ensuring that participants gain the skills necessary to excel in their careers. These courses are delivered by experienced practitioners who bring valuable industry insights into the learning experience.
Capital : What is the contribution of Bruh Finance to Ethiopia’s financial sector and the changes it has brought about? Getachew : Bruh Finance has made significant contributions to Ethiopia’s financial sector, particularly in the areas of education, training, and professional development. Our focus has always been on building capacity within the industry, equipping professionals with the skills and knowledge they need to drive the sector forward. One of our most important contributions has been the development of a range of training programs that address the specific needs of the Ethiopian market.
Our Chartered Insurance Institute (CII) qualification programs, for example, have helped to raise the standard of professionalism within the insurance industry. By providing internationally recognized qualifications, we are helping to ensure that Ethiopian professionals are equipped with the skills they need to compete on a global stage. In addition to our CII programs, we have also made significant strides in the area of capital markets education.
Our capital markets programs are designed to prepare professionals for the challenges and opportunities presented by the emerging Ethiopian capital market. In addition to our focus on education and training, Bruh Finance has been a dedicated advocate for the broader development of the financial sector. In that respect we actually plan to work closely with industry stakeholders, including the National Bank of Ethiopia and the Ethiopian Capital Markets Authority, to promote policies and initiatives that foster the sector’s growth and development.
Our initiatives have played a significant role in fostering a more supportive environment for financial institutions, insurers, and other industry stakeholders, laying the groundwork for increased innovation and growth. Additionally, our study tours to London and Cambridge, UK, have provided board members and senior executives from nine financial institutions, organized into 14 groups or cohorts, with valuable exposure to global best practices. These experiences have enabled them to bring back insights that drive innovation and bolster the financial sector in Ethiopia.
Building on this success, we have completed preparations to expand these tours to the United States, including Washington, D.C., and New York City.
Overall, I believe that Bruh Finance has just started to make a lasting impact on Ethiopia’s financial sector. By focusing on education, training, and advocacy, we are helping to build a more dynamic, competitive, and resilient industry that can drive the country’s economic growth in the years to come. Capital : What do you expect from the early days of the capital market in Ethiopia, when it gets operationalized? What role is Bruh Finance poised to play? Getachew: The establishment of a capital market in Ethiopia is a monumental step forward for the country’s financial sector.
It will open up new avenues for investment, provide businesses with access to much-needed capital, and offer investors new opportunities to grow their wealth. The early days of the capital market will be critical in setting the tone for its future development, and I expect that there will be a period of learning and adjustment as all stakeholders become familiar with the new environment. During this initial phase, it will be essential to ensure that the market operates smoothly, transparently, and fairly.
The role of regulatory bodies like the Ethiopian Capital Markets Authority (ECMA) will be crucial in establishing and enforcing the rules and standards that will govern the market. These early days will also require a concerted effort to educate both the public and market participants about how the capital market works and the opportunities and risks involved. Bruh Finance is poised to play a significant role in this process.
Our capital markets training programs and study tours are designed to prepare professionals and leaders for the challenges and opportunities presented by the new market. We are equipping them with the knowledge and skills they need to operate effectively within this environment, whether as investors, brokers, or regulators. Our graduates will be among the first to obtain licenses from the ECMA, positioning them at the forefront of this exciting new development.
In addition to training, we are also working closely with industry stakeholders to support the establishment of the capital market. This includes participating in discussions about regulatory frameworks, market infrastructure, and investor protection measures. We believe that by contributing our expertise and knowledge, we can help to ensure that the capital market is built on a strong foundation, one that will support sustainable growth and development in the years to come.
Capital : What is the gravity of acquiring international qualifications in capital markets for professionals? Which qualifications does Bruh provide? ...
as a follow-up how do you provide your trainings? Getachew: Acquiring international qualifications in capital markets is of immense importance for professionals in Ethiopia, particularly as the country prepares to operationalize its own capital market. These qualifications provide professionals with a deep understanding of global financial markets, best practices, and the regulatory frameworks that govern them. This knowledge is crucial for ensuring that the Ethiopian capital market operates efficiently, transparently, and in line with international standards.
Our training programs are delivered through a combination of classroom-based instruction, online learning, and practical workshops. We believe that this blended approach provides the best of both worlds: the rigor and structure of traditional education, combined with the flexibility and accessibility of online learning. Our courses are designed to be practical and relevant, with a strong focus on real-world applications.
This ensures that our students not only acquire theoretical knowledge but also develop the skills they need to apply that knowledge in their professional lives..
