Eth Switch Inches to Pick ATM Card Printing System Provider

Tayitu 14th

The two local bidders made offers nine million Birr apart

Eth Switch S.C is considering financial offers from two different companies that are nine million Birr apart for the supply and installation of the same ATM card printers with different software.

Four IT vendors had responded to the initial tender floated by Eth Switch on November 9, 2014 for the supply, implementation, and technical support of card personalisation machine. The four companies were the aforementioned two, including SS Communication (SSC) and Boston Plc.

A financial opening for the four companies was held on November 20, 2014. On December 22, 2014, the Company sent a letter to the two IT vendors, Tewaru and Moti, stating that they are shortlisted so that they should submit their financial proposals again for the specific brands of S7000 and S6000. S7000 has a capacity of making 1,200 cards per hour and S6000 makes 600 cards in hour.

It opened the financial proposal of the two companies on Monday January 6, 2014, and will announce the winner in “a very short period of time,” according to a member of the bid committee who declined to give further information on the issue stating that the offers from the two companies are under evaluation.

Tewaru Trading made the lower offers of 9.4 million Br for the Matica S6000 and 14 million Br for the Matica S7000, significantly lower than Moti Engineering’s 12.1 million Br and 18.9 million Br, respectively.

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While both models are products of Matica Technologies AG, Tewaru proposes to supply the software from Giesecke Devrient (GD), a German company, and Moti from from Gemalto, a Netherland company.

Eth Switch was established in 2011 by all of the 16 banks in Ethiopia at the time, based on a June 2009 recommendation by the central bank. The switch system enables the Banks to transfer funds electronically, clear checks between themselves and share each other’s automated teller machines (ATMs) and Point of Sale (PoS) as well as receive and give money through mobile bank payments and internet banking.

The forming of Eth Switch is part of the National Bank of Ethiopia (NBE’s) National Payment Strategy. It requires that all banks use centralized online real-time electronic (CORE) banking solutions, which interface with the Central Bank and clear settlements between them, without the necessity of any physical presence. The strategy has three parts.

The National Bank of Ethiopia (NBE) launched the Ethiopian automated transfer system (EATS) in May 2011, to implement this system. Within EATS, there is the Real Time Gross Settlement (RTGS), for low volume high value transactions, and the Automated Clearing House (ACH), for high volume low value transactions. The National Switch is the third part of this strategy, after RTGS and ACH.

Every bank in Ethiopia is a shareholder in Eth Switch. The company has a capital of 80.5 million Br, and each member bank has 5,030 shares. Presidents of banks must have a share each and newly formed banks must join in by buying a share at 1,000 Br.

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It has procured an Electronic Transfer System from Swiss-based BPC Banking Technologies in March 2014 after a two-year bidding process. The system it has procured is National Electronic Funds Transfer (NEFT) Switch Clearing, Settlement and Reconciliation System.

A new comer to the business, Tewaru was established back in 2010 by two shareholders as vehicle spare parts importer and distributer but lately, the company has transferred to importer and supplier of computer accessories, while Moti established in same year with Tewaru as Information and Communication Technology solutions provider. So far Moti supplied 910 ATM machines for several private banks and also for the state owned Commercial Bank of Ethiopia (CBE).

The S6000 is used for printing of Smart Access Cards, Credit and Debit Cards, Gift and Loyalty Cards, Membership Cards, Benefits Cards. The S7000 is used for Credit and Debit Cards, Gift and Loyalty Cards, Secure Photo IDs, National IDs, and Membership and Benefit Cards.

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