Lagos-based Zenith Bank is the latest to show interest in joining the Ethiopian financial sector, more than a year after Parliament ratified legislation opening the banking industry to foreign foreign investment.
Zenith’s executives, including the bank’s president and board chairperson, visited Addis Ababa this week for talks with central bank chief Eyob Tekalign (PhD) and officials at the Ethiopian Investment Commission (EIC).
Zinabu Yirga, deputy head of the Commission, stated that Ethiopia is ready to welcome reliable and giant international financial institutions, noting that Ethiopia being the third-largest economy in Sub-Saharan Africa, the expansion of trade relations with other countries, and the existence of grand infrastructure and industrial projects have created a favorable environment to conduct long-term financial sector investment.
Zenith’s head of international market expansion, Olukayode Akinbinu, stated that Zenith Bank has a strong desire to invest in the country’s financial market by utilizing the opportunities created by Ethiopia’s rapidly growing economy, recent sectoral reforms, and the liberalization of banking and financial services.
He added that the bank is currently evaluating investment opportunities in Ethiopia by focusing on digital and technology-based financial solutions as well as financing large government-led projects.
Zenith Bank is headquartered in Lagos, Nigeria, and is a sizable financial institution operating through branches and representative offices in Africa and key international financial centers, providing corporate, retail, digital, and infrastructure financial services.
Zenith is the latest African bank to express interest in the Ethiopian market.
In June, sources at the National Bank of Ethiopia (NBE) hinted that Kenya’s KCB Group Limited will be the first foreign banking institution to join the Ethiopian financial sector under the government’s liberalization drive.
The Banking Business Proclamation amended by lawmakers in November 2024 permits foreign banks to enter in one of four ways. They can incorporate a subsidiary in Ethiopia, buy stakes in a domestic bank, establish a local branch office, or open a representative or liaison office. The law caps foreign investment in a bank at 40 percent ownership, while a domestic bank cannot sell more than 49 percent of its authorized shares to foreign investors.
