Foreign Banks express interest in entering Ethiopia’s financial sector: NBE

Addis Ababa, June 29, 2025 (FMC) – Foreign banks are actively seeking entry into Ethiopia’s financial sector following the government’s recent policy shift to open the banking industry to foreign investment, according to National Bank of Ethiopia (NBE) Governor Mamo Mihretu.

Governor Mamo stated that the Ethiopian government has embarked on a strategic financial liberalization agenda, which includes allowing foreign participation in the banking sector. As part of this initiative, the House of People’s Representatives recently passed legislation authorizing foreign banks to operate in the country, thereby empowering the NBE to implement the policy framework.

The new law enables foreign banks to establish subsidiaries, acquire equity stakes in local banks, and open branches or liaison offices within Ethiopia. In line with this, the NBE has issued a set of directives outlining licensing requirements, operational guidelines, and a comprehensive regulatory framework to govern foreign bank activities.

Mamo emphasized that opening the sector to international banks is expected to generate multiple benefits, including enhanced capital inflow, broader financial inclusion, the introduction of innovative financial products, the expansion of digital banking services, and increased market competition.

He confirmed that several foreign banks have already submitted applications to the National Bank, particularly institutions from neighboring African countries and the Middle East, ENA reported. These banks, he noted, will be granted licenses if they demonstrate clear value addition to Ethiopia’s economy and the overall strength of the financial sector.

“The overarching goal of this reform is to transform credit into investment, foster inclusive financial access, and support the productivity of the Ethiopian economy,” Mamo explained.