Ethiopia Opens SEZ Banking to All Lenders to Deepen Investment, Strengthen Competitiveness

Addis Ababa, March 18, 2026 (FMC) — The Industrial Parks Development Corporation (IPDC) has announced expanded financial access for investors operating in Special Economic Zones (SEZs), a move aimed at boosting investment and enhancing competitiveness.

The reform is intended to improve service delivery and create a more enabling business environment within the zones.

A half-day consultation workshop was held to strengthen banking services and enhance coordination among investors, financial institutions, and relevant government entities operating in the SEZs.

Speaking at the event, IPDC Chief Officer for Operations and Park Management, Fitsum Ketema, said financial services in the zones had previously been limited to the Commercial Bank of Ethiopia, but are now open to all banks to improve access and competition.

He noted that the government has invested over 1.5 billion U.S. dollars in developing the zones, which have attracted investments worth billions, contributing to foreign exchange generation, job creation, and technology transfer.

Fitsum added that the initiative aims to promote broader private sector participation across manufacturing, agriculture, trade, and services, while attracting foreign direct investment and supporting the development of economic clusters.

He emphasized that the framework is expected to improve export performance and create a more conducive environment for productive investment.

Under the SEZ proclamation, the National Bank of Ethiopia is mandated to issue directives outlining selection criteria, standards, and licensing requirements for financial institutions seeking to operate within the zones.

According to Fitsum, the industrial zones, developed through significant public investment, have played a key role in boosting production and attracting capital inflows.

Currently, more than 290 domestic and foreign investors operate across 14 investment hubs managed by the IPDC.

The consultation forum, organized to strengthen collaboration between financial institutions and investors, brought together senior executives from 31 public and private financial institutions, along with officials from the Ethiopian Investment Commission, the National Bank of Ethiopia, and the IPDC.

Discussion papers presented at the forum outlined the legal framework governing the zones and explored ways to improve operating conditions for banks within them.