"Cash flow is more important than profit." — Mukemil Bedru Our guest for this episode is Mukemil Bedru, Founder & Managing Partner of Valcrest Capital, and Co-Founder of Hijra Bank. From helping establish Ethiopia's first generation of investment banking institutions to advising businesses through one of the country's biggest economic transitions, Mukemil brings a front-row perspective on the future of Ethiopian finance. In this conversation, we unpack Ethiopia's changing capital markets, foreign banks, startup financing, investment banking, and the policy shifts reshaping the economy. Mukemil also shares why cash flow matters more than profit, how he hires and builds teams, and why entrepreneurs must build institutions—not just businesses. Shik Cleaning Service: You can reach their Service Via: 0940270521 / 0997298286 https://www.shikcleaning.com/ Visit the Bank of Abyssinia Official Website: https://www.bankofabyssinia.com/ GIZ: https://www.giz.de/de/downloads/giz2023-en-private-sector-development-in-ethiopia.pdf Amibara Properties: You can reach their sales and corporate consulting teams via the following contact lines:- Line 1: +251 901 69 69 69 Line 2: +251 969 36 36 36 To advertise on Meri: https://meri.et/advertise +251974255555 info@meri.et 00:00 - Teaser & Episode Highlights 00:01:36 - Sponsor Announcement 00:02:36 - Introduction & Guest Welcome 00:05:50 - Launching Prime Capital Investment Bank 00:06:43 - Commercial Banking vs. Investment Banking Explained 00:11:13 - The State of Ethiopia's Emerging Capital Market 00:14:10 - Debt vs. Equity Financing for Businesses 00:19:55 - Floating the Birr: Foreign Exchange Reforms Update 00:28:13 - NBE Policy Updates: Credit Cap Removal & Exporter FX Retention 00:34:13 - Special Economic Zones & Free Trade Zone Benefits 00:40:07 - Franco Valuta Regime: Black Market Impact & Tighter Rules 00:49:21 - Opening Ethiopia's Banking Sector to Foreign Banks 00:51:38 - Founder Mindset: Building in Silence vs. Seeking Publicity 00:56:44 - Ethiopian Domestic Banks vs. Entering Foreign Banks 01:04:14 - Ethiopia’s Startup Ecosystem & The New Startup Proclamation 01:16:32 - "Pitch-preneurs" vs. Real Business Execution 01:25:12 - Profit vs. Cash Flow: Why Profitable Companies Fail 01:33:02 - Financial Discipline & Managing Working Capital 01:41:48 - Raising Capital & Financial Readiness for Ethiopian Businesses 01:52:05 - Ease of Doing Business & Collateral Registration Issues 01:56:35 - High-Growth Sectors to Watch in the Current Economy 02:00:40 - How Mukemil Bedru Would Start a Business from Scratch Today 02:04:15 - Talent Acquisition: Hiring for Character over Competence 02:16:44 - Adapting to Rapid Policy Changes & Final Thoughts 02:21:46 - Team Spotlight: Former Staff Launching "Shek Cleaning Service" Social Links https://t.me/MERI_PODCAST https://twitter.com/MERI_Podcast https://www.instagram.com/meripodcast/ https://www.youtube.com/channel/UCzKNuQ80qNSpt2x-7dsazJg https://youtube.com/@Meriwoch?si=yIpJ3byprnVNwKi1 https://youtube.com/@mericlipset?si=wwa0KeQ_Nv2aPy9l https://www.tiktok.com/@meripodcast https://www.linkedin.com/company/meriethiopian/ Copyright Notice for Meri Podcast: All rights reserved. The content featured in this podcast is protected by copyright laws. Unauthorized reproduction, distribution, or modification of any portion of this podcast is strictly prohibited. For permission to use our content, please contact us at info@meri.et Thank you for respecting our copyright.