Two foreign banks move to enter Ethiopia after 50-year banking ban

Two foreign banking institutions have formally applied to enter Ethiopia through greenfield investments, marking the latest step in a growing race by African banks to gain access to one of the continent’s largest and most underbanked markets after its five-decade restriction on foreign banking was lifted. Read also: Ethiopian Airlines signs agreement with Boeing for 777-8F, 777F freighters to expand cargo fleet The National Bank of Ethiopia (NBE) is processing the two applications, which would see the institutions establish new banking operations from the ground up rather than acquire stakes in existing Ethiopian banks. “Currently, there are two foreign bank applicants whose applications are being processed by the central bank,” said Frezer Ayalew, director of the Supervision Directorate at the NBE. He said both institutions had chosen the greenfield route and were seeking to establish fully foreign-owned banking operations in Ethiopia. The regulator has not disclosed their identities. The applications come as several major African banking groups, including Kenya’s KCB Group and Equity Group, Nigeria’s Zenith Bank and FirstBank, and South Africa’s Standard Bank Group, assess opportunities in Africa’s second most populous nation following the opening of the sector. Morocco’s Attijariwafa Bank, Egypt’s Commercial International Bank (CIB) and South Africa’s Absa Group have also been linked to potential entry or expansion opportunities in the market, while Standard Bank already has a representative office in Addis Ababa. Ethiopia opens banking doors Ethiopia’s banking sector had been closed to foreign commercial banks since 1975, when the Derg military regime nationalised the country’s banks following the 1974 revolution. After the Derg fell in 1991, the government authorised private domestic banks in 1994, but ownership and participation remained restricted to Ethiopian citizens. Foreign financial institutions were barred from operating in the country or taking stakes in local banks. The turning point came with the Banking Business Proclamation, passed in December 2024 and implemented through NBE directives in 2025. The new framework, operational from June 2025, allows foreign banks to establish wholly or partially owned subsidiaries, open branches or acquire shares in existing Ethiopian banks. Foreign institutions can also establish representative offices for liaison, marketing and market research, although these cannot conduct core banking transactions. Read also: WORLD IN BRIEF: Netanyahu defends Israel’s war, Italy bans burqa and niqab in schools, Dangote backs $660m Ethiopia Djibouti fuel pipeline and other stories The reform ended more than five decades of protection for one of Africa’s last major closed banking markets and was designed to increase competition, bring additional capital and expertise into the financial system, expand financial inclusion and accelerate digital banking. African banks position for entry The opening has attracted particular interest from regional banking groups that already operate across multiple African markets. Kenya’s KCB Group has been among the most active potential entrants. The lender has been evaluating Ethiopia as part of its regional expansion strategy and has identified a target entity for possible entry. KCB has said it aims to make an announcement on its Ethiopia plans in 2026. KCB has also received approval to enter Ethiopia and has opened a representative office as it explores opportunities in the market. Fellow Kenyan lender Equity Group has also expressed interest, with the bank engaging Ethiopian authorities over entry conditions. Its established model of serving previously underserved customers across East Africa makes Ethiopia a potentially significant expansion market. Nigeria’s Zenith Bank and FirstBank are also among the African lenders that have been exploring opportunities since Ethiopia opened its banking sector. Their interest reflects the growing international ambitions of Nigeria’s largest banking groups and their push to build pan-African franchises. South Africa’s Standard Bank Group, Africa’s largest bank by assets, has maintained a presence in Ethiopia through its representative office since 2015. The office was re-licensed under the country’s new banking framework, while the group is now considering a more direct banking presence. Stanbic Bank, Standard Bank’s East African subsidiary, is weighing a greenfield operation as an alternative to acquiring a stake in an existing bank, partly because of Ethiopia’s foreign ownership restrictions. Absa has also expressed interest but has indicated that further liberalisation of ownership rules could be important to its decision to enter the market. Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Read also: Ethiopian Airlines signs agreement with Boeing for 777-8F, 777F freighters to expand cargo fleet The National Bank of Ethiopia (NBE) is processing the two applications, which would see the institutions establish new banking operations from the ground up rather than acquire stakes in existing Ethiopian banks. “Currently, there are two foreign bank applicants whose applications are being processed by the central bank,” said Frezer Ayalew, director of the Supervision Directorate at the NBE. He said both institutions had chosen the greenfield route and were seeking to establish fully foreign-owned banking operations in Ethiopia. The regulator has not disclosed their identities. The applications come as several major African banking groups, including Kenya’s KCB Group and Equity Group, Nigeria’s Zenith Bank and FirstBank, and South Africa’s Standard Bank Group, assess opportunities in Africa’s second most populous nation following the opening of the sector. Morocco’s Attijariwafa Bank, Egypt’s Commercial International Bank (CIB) and South Africa’s Absa Group have also been linked to potential entry or expansion opportunities in the market, while Standard Bank already has a representative office in Addis Ababa. Ethiopia opens banking doors Ethiopia’s banking sector had been closed to foreign commercial banks since 1975, when the Derg military regime nationalised the country’s banks following the 1974 revolution. After the Derg fell in 1991, the government authorised private domestic banks in 1994, but ownership and participation remained restricted to Ethiopian citizens. Foreign financial institutions were barred from operating in the country or taking stakes in local banks. The turning point came with the Banking Business Proclamation, passed in December 2024 and implemented through NBE directives in 2025. The new framework, operational from June 2025, allows foreign banks to establish wholly or partially owned subsidiaries, open branches or acquire shares in existing Ethiopian banks. Foreign institutions can also establish representative offices for liaison, marketing and market research, although these cannot conduct core banking transactions. Read also: WORLD IN BRIEF: Netanyahu defends Israel’s war, Italy bans burqa and niqab in schools, Dangote backs $660m Ethiopia Djibouti fuel pipeline and other stories The reform ended more than five decades of protection for one of Africa’s last major closed banking markets and was designed to increase competition, bring additional capital and expertise into the financial system, expand financial inclusion and accelerate digital banking. African banks position for entry The opening has attracted particular interest from regional banking groups that already operate across multiple African markets. Kenya’s KCB Group has been among the most active potential entrants. The lender has been evaluating Ethiopia as part of its regional expansion strategy and has identified a target entity for possible entry. KCB has said it aims to make an announcement on its Ethiopia plans in 2026. KCB has also received approval to enter Ethiopia and has opened a representative office as it explores opportunities in the market. Fellow Kenyan lender Equity Group has also expressed interest, with the bank engaging Ethiopian authorities over entry conditions. Its established model of serving previously underserved customers across East Africa makes Ethiopia a potentially significant expansion market. Nigeria’s Zenith Bank and FirstBank are also among the African lenders that have been exploring opportunities since Ethiopia opened its banking sector. Their interest reflects the growing international ambitions of Nigeria’s largest banking groups and their push to build pan-African franchises. South Africa’s Standard Bank Group, Africa’s largest bank by assets, has maintained a presence in Ethiopia through its representative office since 2015. The office was re-licensed under the country’s new banking framework, while the group is now considering a more direct banking presence. Stanbic Bank, Standard Bank’s East African subsidiary, is weighing a greenfield operation as an alternative to acquiring a stake in an existing bank, partly because of Ethiopia’s foreign ownership restrictions. Absa has also expressed interest but has indicated that further liberalisation of ownership rules could be important to its decision to enter the market. Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The National Bank of Ethiopia (NBE) is processing the two applications, which would see the institutions establish new banking operations from the ground up rather than acquire stakes in existing Ethiopian banks. “Currently, there are two foreign bank applicants whose applications are being processed by the central bank,” said Frezer Ayalew, director of the Supervision Directorate at the NBE. He said both institutions had chosen the greenfield route and were seeking to establish fully foreign-owned banking operations in Ethiopia. The regulator has not disclosed their identities. The applications come as several major African banking groups, including Kenya’s KCB Group and Equity Group, Nigeria’s Zenith Bank and FirstBank, and South Africa’s Standard Bank Group, assess opportunities in Africa’s second most populous nation following the opening of the sector. Morocco’s Attijariwafa Bank, Egypt’s Commercial International Bank (CIB) and South Africa’s Absa Group have also been linked to potential entry or expansion opportunities in the market, while Standard Bank already has a representative office in Addis Ababa. Ethiopia opens banking doors Ethiopia’s banking sector had been closed to foreign commercial banks since 1975, when the Derg military regime nationalised the country’s banks following the 1974 revolution. After the Derg fell in 1991, the government authorised private domestic banks in 1994, but ownership and participation remained restricted to Ethiopian citizens. Foreign financial institutions were barred from operating in the country or taking stakes in local banks. The turning point came with the Banking Business Proclamation, passed in December 2024 and implemented through NBE directives in 2025. The new framework, operational from June 2025, allows foreign banks to establish wholly or partially owned subsidiaries, open branches or acquire shares in existing Ethiopian banks. Foreign institutions can also establish representative offices for liaison, marketing and market research, although these cannot conduct core banking transactions. Read also: WORLD IN BRIEF: Netanyahu defends Israel’s war, Italy bans burqa and niqab in schools, Dangote backs $660m Ethiopia Djibouti fuel pipeline and other stories The reform ended more than five decades of protection for one of Africa’s last major closed banking markets and was designed to increase competition, bring additional capital and expertise into the financial system, expand financial inclusion and accelerate digital banking. African banks position for entry The opening has attracted particular interest from regional banking groups that already operate across multiple African markets. Kenya’s KCB Group has been among the most active potential entrants. The lender has been evaluating Ethiopia as part of its regional expansion strategy and has identified a target entity for possible entry. KCB has said it aims to make an announcement on its Ethiopia plans in 2026. KCB has also received approval to enter Ethiopia and has opened a representative office as it explores opportunities in the market. Fellow Kenyan lender Equity Group has also expressed interest, with the bank engaging Ethiopian authorities over entry conditions. Its established model of serving previously underserved customers across East Africa makes Ethiopia a potentially significant expansion market. Nigeria’s Zenith Bank and FirstBank are also among the African lenders that have been exploring opportunities since Ethiopia opened its banking sector. Their interest reflects the growing international ambitions of Nigeria’s largest banking groups and their push to build pan-African franchises. South Africa’s Standard Bank Group, Africa’s largest bank by assets, has maintained a presence in Ethiopia through its representative office since 2015. The office was re-licensed under the country’s new banking framework, while the group is now considering a more direct banking presence. Stanbic Bank, Standard Bank’s East African subsidiary, is weighing a greenfield operation as an alternative to acquiring a stake in an existing bank, partly because of Ethiopia’s foreign ownership restrictions. Absa has also expressed interest but has indicated that further liberalisation of ownership rules could be important to its decision to enter the market. Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

“Currently, there are two foreign bank applicants whose applications are being processed by the central bank,” said Frezer Ayalew, director of the Supervision Directorate at the NBE. He said both institutions had chosen the greenfield route and were seeking to establish fully foreign-owned banking operations in Ethiopia. The regulator has not disclosed their identities. The applications come as several major African banking groups, including Kenya’s KCB Group and Equity Group, Nigeria’s Zenith Bank and FirstBank, and South Africa’s Standard Bank Group, assess opportunities in Africa’s second most populous nation following the opening of the sector. Morocco’s Attijariwafa Bank, Egypt’s Commercial International Bank (CIB) and South Africa’s Absa Group have also been linked to potential entry or expansion opportunities in the market, while Standard Bank already has a representative office in Addis Ababa. Ethiopia opens banking doors Ethiopia’s banking sector had been closed to foreign commercial banks since 1975, when the Derg military regime nationalised the country’s banks following the 1974 revolution. After the Derg fell in 1991, the government authorised private domestic banks in 1994, but ownership and participation remained restricted to Ethiopian citizens. Foreign financial institutions were barred from operating in the country or taking stakes in local banks. The turning point came with the Banking Business Proclamation, passed in December 2024 and implemented through NBE directives in 2025. The new framework, operational from June 2025, allows foreign banks to establish wholly or partially owned subsidiaries, open branches or acquire shares in existing Ethiopian banks. Foreign institutions can also establish representative offices for liaison, marketing and market research, although these cannot conduct core banking transactions. Read also: WORLD IN BRIEF: Netanyahu defends Israel’s war, Italy bans burqa and niqab in schools, Dangote backs $660m Ethiopia Djibouti fuel pipeline and other stories The reform ended more than five decades of protection for one of Africa’s last major closed banking markets and was designed to increase competition, bring additional capital and expertise into the financial system, expand financial inclusion and accelerate digital banking. African banks position for entry The opening has attracted particular interest from regional banking groups that already operate across multiple African markets. Kenya’s KCB Group has been among the most active potential entrants. The lender has been evaluating Ethiopia as part of its regional expansion strategy and has identified a target entity for possible entry. KCB has said it aims to make an announcement on its Ethiopia plans in 2026. KCB has also received approval to enter Ethiopia and has opened a representative office as it explores opportunities in the market. Fellow Kenyan lender Equity Group has also expressed interest, with the bank engaging Ethiopian authorities over entry conditions. Its established model of serving previously underserved customers across East Africa makes Ethiopia a potentially significant expansion market. Nigeria’s Zenith Bank and FirstBank are also among the African lenders that have been exploring opportunities since Ethiopia opened its banking sector. Their interest reflects the growing international ambitions of Nigeria’s largest banking groups and their push to build pan-African franchises. South Africa’s Standard Bank Group, Africa’s largest bank by assets, has maintained a presence in Ethiopia through its representative office since 2015. The office was re-licensed under the country’s new banking framework, while the group is now considering a more direct banking presence. Stanbic Bank, Standard Bank’s East African subsidiary, is weighing a greenfield operation as an alternative to acquiring a stake in an existing bank, partly because of Ethiopia’s foreign ownership restrictions. Absa has also expressed interest but has indicated that further liberalisation of ownership rules could be important to its decision to enter the market. Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

He said both institutions had chosen the greenfield route and were seeking to establish fully foreign-owned banking operations in Ethiopia. The regulator has not disclosed their identities. The applications come as several major African banking groups, including Kenya’s KCB Group and Equity Group, Nigeria’s Zenith Bank and FirstBank, and South Africa’s Standard Bank Group, assess opportunities in Africa’s second most populous nation following the opening of the sector. Morocco’s Attijariwafa Bank, Egypt’s Commercial International Bank (CIB) and South Africa’s Absa Group have also been linked to potential entry or expansion opportunities in the market, while Standard Bank already has a representative office in Addis Ababa. Ethiopia opens banking doors Ethiopia’s banking sector had been closed to foreign commercial banks since 1975, when the Derg military regime nationalised the country’s banks following the 1974 revolution. After the Derg fell in 1991, the government authorised private domestic banks in 1994, but ownership and participation remained restricted to Ethiopian citizens. Foreign financial institutions were barred from operating in the country or taking stakes in local banks. The turning point came with the Banking Business Proclamation, passed in December 2024 and implemented through NBE directives in 2025. The new framework, operational from June 2025, allows foreign banks to establish wholly or partially owned subsidiaries, open branches or acquire shares in existing Ethiopian banks. Foreign institutions can also establish representative offices for liaison, marketing and market research, although these cannot conduct core banking transactions. Read also: WORLD IN BRIEF: Netanyahu defends Israel’s war, Italy bans burqa and niqab in schools, Dangote backs $660m Ethiopia Djibouti fuel pipeline and other stories The reform ended more than five decades of protection for one of Africa’s last major closed banking markets and was designed to increase competition, bring additional capital and expertise into the financial system, expand financial inclusion and accelerate digital banking. African banks position for entry The opening has attracted particular interest from regional banking groups that already operate across multiple African markets. Kenya’s KCB Group has been among the most active potential entrants. The lender has been evaluating Ethiopia as part of its regional expansion strategy and has identified a target entity for possible entry. KCB has said it aims to make an announcement on its Ethiopia plans in 2026. KCB has also received approval to enter Ethiopia and has opened a representative office as it explores opportunities in the market. Fellow Kenyan lender Equity Group has also expressed interest, with the bank engaging Ethiopian authorities over entry conditions. Its established model of serving previously underserved customers across East Africa makes Ethiopia a potentially significant expansion market. Nigeria’s Zenith Bank and FirstBank are also among the African lenders that have been exploring opportunities since Ethiopia opened its banking sector. Their interest reflects the growing international ambitions of Nigeria’s largest banking groups and their push to build pan-African franchises. South Africa’s Standard Bank Group, Africa’s largest bank by assets, has maintained a presence in Ethiopia through its representative office since 2015. The office was re-licensed under the country’s new banking framework, while the group is now considering a more direct banking presence. Stanbic Bank, Standard Bank’s East African subsidiary, is weighing a greenfield operation as an alternative to acquiring a stake in an existing bank, partly because of Ethiopia’s foreign ownership restrictions. Absa has also expressed interest but has indicated that further liberalisation of ownership rules could be important to its decision to enter the market. Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The applications come as several major African banking groups, including Kenya’s KCB Group and Equity Group, Nigeria’s Zenith Bank and FirstBank, and South Africa’s Standard Bank Group, assess opportunities in Africa’s second most populous nation following the opening of the sector. Morocco’s Attijariwafa Bank, Egypt’s Commercial International Bank (CIB) and South Africa’s Absa Group have also been linked to potential entry or expansion opportunities in the market, while Standard Bank already has a representative office in Addis Ababa. Ethiopia opens banking doors Ethiopia’s banking sector had been closed to foreign commercial banks since 1975, when the Derg military regime nationalised the country’s banks following the 1974 revolution. After the Derg fell in 1991, the government authorised private domestic banks in 1994, but ownership and participation remained restricted to Ethiopian citizens. Foreign financial institutions were barred from operating in the country or taking stakes in local banks. The turning point came with the Banking Business Proclamation, passed in December 2024 and implemented through NBE directives in 2025. The new framework, operational from June 2025, allows foreign banks to establish wholly or partially owned subsidiaries, open branches or acquire shares in existing Ethiopian banks. Foreign institutions can also establish representative offices for liaison, marketing and market research, although these cannot conduct core banking transactions. Read also: WORLD IN BRIEF: Netanyahu defends Israel’s war, Italy bans burqa and niqab in schools, Dangote backs $660m Ethiopia Djibouti fuel pipeline and other stories The reform ended more than five decades of protection for one of Africa’s last major closed banking markets and was designed to increase competition, bring additional capital and expertise into the financial system, expand financial inclusion and accelerate digital banking. African banks position for entry The opening has attracted particular interest from regional banking groups that already operate across multiple African markets. Kenya’s KCB Group has been among the most active potential entrants. The lender has been evaluating Ethiopia as part of its regional expansion strategy and has identified a target entity for possible entry. KCB has said it aims to make an announcement on its Ethiopia plans in 2026. KCB has also received approval to enter Ethiopia and has opened a representative office as it explores opportunities in the market. Fellow Kenyan lender Equity Group has also expressed interest, with the bank engaging Ethiopian authorities over entry conditions. Its established model of serving previously underserved customers across East Africa makes Ethiopia a potentially significant expansion market. Nigeria’s Zenith Bank and FirstBank are also among the African lenders that have been exploring opportunities since Ethiopia opened its banking sector. Their interest reflects the growing international ambitions of Nigeria’s largest banking groups and their push to build pan-African franchises. South Africa’s Standard Bank Group, Africa’s largest bank by assets, has maintained a presence in Ethiopia through its representative office since 2015. The office was re-licensed under the country’s new banking framework, while the group is now considering a more direct banking presence. Stanbic Bank, Standard Bank’s East African subsidiary, is weighing a greenfield operation as an alternative to acquiring a stake in an existing bank, partly because of Ethiopia’s foreign ownership restrictions. Absa has also expressed interest but has indicated that further liberalisation of ownership rules could be important to its decision to enter the market. Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Morocco’s Attijariwafa Bank, Egypt’s Commercial International Bank (CIB) and South Africa’s Absa Group have also been linked to potential entry or expansion opportunities in the market, while Standard Bank already has a representative office in Addis Ababa. Ethiopia opens banking doors Ethiopia’s banking sector had been closed to foreign commercial banks since 1975, when the Derg military regime nationalised the country’s banks following the 1974 revolution. After the Derg fell in 1991, the government authorised private domestic banks in 1994, but ownership and participation remained restricted to Ethiopian citizens. Foreign financial institutions were barred from operating in the country or taking stakes in local banks. The turning point came with the Banking Business Proclamation, passed in December 2024 and implemented through NBE directives in 2025. The new framework, operational from June 2025, allows foreign banks to establish wholly or partially owned subsidiaries, open branches or acquire shares in existing Ethiopian banks. Foreign institutions can also establish representative offices for liaison, marketing and market research, although these cannot conduct core banking transactions. Read also: WORLD IN BRIEF: Netanyahu defends Israel’s war, Italy bans burqa and niqab in schools, Dangote backs $660m Ethiopia Djibouti fuel pipeline and other stories The reform ended more than five decades of protection for one of Africa’s last major closed banking markets and was designed to increase competition, bring additional capital and expertise into the financial system, expand financial inclusion and accelerate digital banking. African banks position for entry The opening has attracted particular interest from regional banking groups that already operate across multiple African markets. Kenya’s KCB Group has been among the most active potential entrants. The lender has been evaluating Ethiopia as part of its regional expansion strategy and has identified a target entity for possible entry. KCB has said it aims to make an announcement on its Ethiopia plans in 2026. KCB has also received approval to enter Ethiopia and has opened a representative office as it explores opportunities in the market. Fellow Kenyan lender Equity Group has also expressed interest, with the bank engaging Ethiopian authorities over entry conditions. Its established model of serving previously underserved customers across East Africa makes Ethiopia a potentially significant expansion market. Nigeria’s Zenith Bank and FirstBank are also among the African lenders that have been exploring opportunities since Ethiopia opened its banking sector. Their interest reflects the growing international ambitions of Nigeria’s largest banking groups and their push to build pan-African franchises. South Africa’s Standard Bank Group, Africa’s largest bank by assets, has maintained a presence in Ethiopia through its representative office since 2015. The office was re-licensed under the country’s new banking framework, while the group is now considering a more direct banking presence. Stanbic Bank, Standard Bank’s East African subsidiary, is weighing a greenfield operation as an alternative to acquiring a stake in an existing bank, partly because of Ethiopia’s foreign ownership restrictions. Absa has also expressed interest but has indicated that further liberalisation of ownership rules could be important to its decision to enter the market. Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Ethiopia’s banking sector had been closed to foreign commercial banks since 1975, when the Derg military regime nationalised the country’s banks following the 1974 revolution. After the Derg fell in 1991, the government authorised private domestic banks in 1994, but ownership and participation remained restricted to Ethiopian citizens. Foreign financial institutions were barred from operating in the country or taking stakes in local banks. The turning point came with the Banking Business Proclamation, passed in December 2024 and implemented through NBE directives in 2025. The new framework, operational from June 2025, allows foreign banks to establish wholly or partially owned subsidiaries, open branches or acquire shares in existing Ethiopian banks. Foreign institutions can also establish representative offices for liaison, marketing and market research, although these cannot conduct core banking transactions. Read also: WORLD IN BRIEF: Netanyahu defends Israel’s war, Italy bans burqa and niqab in schools, Dangote backs $660m Ethiopia Djibouti fuel pipeline and other stories The reform ended more than five decades of protection for one of Africa’s last major closed banking markets and was designed to increase competition, bring additional capital and expertise into the financial system, expand financial inclusion and accelerate digital banking. African banks position for entry The opening has attracted particular interest from regional banking groups that already operate across multiple African markets. Kenya’s KCB Group has been among the most active potential entrants. The lender has been evaluating Ethiopia as part of its regional expansion strategy and has identified a target entity for possible entry. KCB has said it aims to make an announcement on its Ethiopia plans in 2026. KCB has also received approval to enter Ethiopia and has opened a representative office as it explores opportunities in the market. Fellow Kenyan lender Equity Group has also expressed interest, with the bank engaging Ethiopian authorities over entry conditions. Its established model of serving previously underserved customers across East Africa makes Ethiopia a potentially significant expansion market. Nigeria’s Zenith Bank and FirstBank are also among the African lenders that have been exploring opportunities since Ethiopia opened its banking sector. Their interest reflects the growing international ambitions of Nigeria’s largest banking groups and their push to build pan-African franchises. South Africa’s Standard Bank Group, Africa’s largest bank by assets, has maintained a presence in Ethiopia through its representative office since 2015. The office was re-licensed under the country’s new banking framework, while the group is now considering a more direct banking presence. Stanbic Bank, Standard Bank’s East African subsidiary, is weighing a greenfield operation as an alternative to acquiring a stake in an existing bank, partly because of Ethiopia’s foreign ownership restrictions. Absa has also expressed interest but has indicated that further liberalisation of ownership rules could be important to its decision to enter the market. Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

After the Derg fell in 1991, the government authorised private domestic banks in 1994, but ownership and participation remained restricted to Ethiopian citizens. Foreign financial institutions were barred from operating in the country or taking stakes in local banks. The turning point came with the Banking Business Proclamation, passed in December 2024 and implemented through NBE directives in 2025. The new framework, operational from June 2025, allows foreign banks to establish wholly or partially owned subsidiaries, open branches or acquire shares in existing Ethiopian banks. Foreign institutions can also establish representative offices for liaison, marketing and market research, although these cannot conduct core banking transactions. Read also: WORLD IN BRIEF: Netanyahu defends Israel’s war, Italy bans burqa and niqab in schools, Dangote backs $660m Ethiopia Djibouti fuel pipeline and other stories The reform ended more than five decades of protection for one of Africa’s last major closed banking markets and was designed to increase competition, bring additional capital and expertise into the financial system, expand financial inclusion and accelerate digital banking. African banks position for entry The opening has attracted particular interest from regional banking groups that already operate across multiple African markets. Kenya’s KCB Group has been among the most active potential entrants. The lender has been evaluating Ethiopia as part of its regional expansion strategy and has identified a target entity for possible entry. KCB has said it aims to make an announcement on its Ethiopia plans in 2026. KCB has also received approval to enter Ethiopia and has opened a representative office as it explores opportunities in the market. Fellow Kenyan lender Equity Group has also expressed interest, with the bank engaging Ethiopian authorities over entry conditions. Its established model of serving previously underserved customers across East Africa makes Ethiopia a potentially significant expansion market. Nigeria’s Zenith Bank and FirstBank are also among the African lenders that have been exploring opportunities since Ethiopia opened its banking sector. Their interest reflects the growing international ambitions of Nigeria’s largest banking groups and their push to build pan-African franchises. South Africa’s Standard Bank Group, Africa’s largest bank by assets, has maintained a presence in Ethiopia through its representative office since 2015. The office was re-licensed under the country’s new banking framework, while the group is now considering a more direct banking presence. Stanbic Bank, Standard Bank’s East African subsidiary, is weighing a greenfield operation as an alternative to acquiring a stake in an existing bank, partly because of Ethiopia’s foreign ownership restrictions. Absa has also expressed interest but has indicated that further liberalisation of ownership rules could be important to its decision to enter the market. Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The turning point came with the Banking Business Proclamation, passed in December 2024 and implemented through NBE directives in 2025. The new framework, operational from June 2025, allows foreign banks to establish wholly or partially owned subsidiaries, open branches or acquire shares in existing Ethiopian banks. Foreign institutions can also establish representative offices for liaison, marketing and market research, although these cannot conduct core banking transactions. Read also: WORLD IN BRIEF: Netanyahu defends Israel’s war, Italy bans burqa and niqab in schools, Dangote backs $660m Ethiopia Djibouti fuel pipeline and other stories The reform ended more than five decades of protection for one of Africa’s last major closed banking markets and was designed to increase competition, bring additional capital and expertise into the financial system, expand financial inclusion and accelerate digital banking. African banks position for entry The opening has attracted particular interest from regional banking groups that already operate across multiple African markets. Kenya’s KCB Group has been among the most active potential entrants. The lender has been evaluating Ethiopia as part of its regional expansion strategy and has identified a target entity for possible entry. KCB has said it aims to make an announcement on its Ethiopia plans in 2026. KCB has also received approval to enter Ethiopia and has opened a representative office as it explores opportunities in the market. Fellow Kenyan lender Equity Group has also expressed interest, with the bank engaging Ethiopian authorities over entry conditions. Its established model of serving previously underserved customers across East Africa makes Ethiopia a potentially significant expansion market. Nigeria’s Zenith Bank and FirstBank are also among the African lenders that have been exploring opportunities since Ethiopia opened its banking sector. Their interest reflects the growing international ambitions of Nigeria’s largest banking groups and their push to build pan-African franchises. South Africa’s Standard Bank Group, Africa’s largest bank by assets, has maintained a presence in Ethiopia through its representative office since 2015. The office was re-licensed under the country’s new banking framework, while the group is now considering a more direct banking presence. Stanbic Bank, Standard Bank’s East African subsidiary, is weighing a greenfield operation as an alternative to acquiring a stake in an existing bank, partly because of Ethiopia’s foreign ownership restrictions. Absa has also expressed interest but has indicated that further liberalisation of ownership rules could be important to its decision to enter the market. Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The new framework, operational from June 2025, allows foreign banks to establish wholly or partially owned subsidiaries, open branches or acquire shares in existing Ethiopian banks. Foreign institutions can also establish representative offices for liaison, marketing and market research, although these cannot conduct core banking transactions. Read also: WORLD IN BRIEF: Netanyahu defends Israel’s war, Italy bans burqa and niqab in schools, Dangote backs $660m Ethiopia Djibouti fuel pipeline and other stories The reform ended more than five decades of protection for one of Africa’s last major closed banking markets and was designed to increase competition, bring additional capital and expertise into the financial system, expand financial inclusion and accelerate digital banking. African banks position for entry The opening has attracted particular interest from regional banking groups that already operate across multiple African markets. Kenya’s KCB Group has been among the most active potential entrants. The lender has been evaluating Ethiopia as part of its regional expansion strategy and has identified a target entity for possible entry. KCB has said it aims to make an announcement on its Ethiopia plans in 2026. KCB has also received approval to enter Ethiopia and has opened a representative office as it explores opportunities in the market. Fellow Kenyan lender Equity Group has also expressed interest, with the bank engaging Ethiopian authorities over entry conditions. Its established model of serving previously underserved customers across East Africa makes Ethiopia a potentially significant expansion market. Nigeria’s Zenith Bank and FirstBank are also among the African lenders that have been exploring opportunities since Ethiopia opened its banking sector. Their interest reflects the growing international ambitions of Nigeria’s largest banking groups and their push to build pan-African franchises. South Africa’s Standard Bank Group, Africa’s largest bank by assets, has maintained a presence in Ethiopia through its representative office since 2015. The office was re-licensed under the country’s new banking framework, while the group is now considering a more direct banking presence. Stanbic Bank, Standard Bank’s East African subsidiary, is weighing a greenfield operation as an alternative to acquiring a stake in an existing bank, partly because of Ethiopia’s foreign ownership restrictions. Absa has also expressed interest but has indicated that further liberalisation of ownership rules could be important to its decision to enter the market. Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Read also: WORLD IN BRIEF: Netanyahu defends Israel’s war, Italy bans burqa and niqab in schools, Dangote backs $660m Ethiopia Djibouti fuel pipeline and other stories The reform ended more than five decades of protection for one of Africa’s last major closed banking markets and was designed to increase competition, bring additional capital and expertise into the financial system, expand financial inclusion and accelerate digital banking. African banks position for entry The opening has attracted particular interest from regional banking groups that already operate across multiple African markets. Kenya’s KCB Group has been among the most active potential entrants. The lender has been evaluating Ethiopia as part of its regional expansion strategy and has identified a target entity for possible entry. KCB has said it aims to make an announcement on its Ethiopia plans in 2026. KCB has also received approval to enter Ethiopia and has opened a representative office as it explores opportunities in the market. Fellow Kenyan lender Equity Group has also expressed interest, with the bank engaging Ethiopian authorities over entry conditions. Its established model of serving previously underserved customers across East Africa makes Ethiopia a potentially significant expansion market. Nigeria’s Zenith Bank and FirstBank are also among the African lenders that have been exploring opportunities since Ethiopia opened its banking sector. Their interest reflects the growing international ambitions of Nigeria’s largest banking groups and their push to build pan-African franchises. South Africa’s Standard Bank Group, Africa’s largest bank by assets, has maintained a presence in Ethiopia through its representative office since 2015. The office was re-licensed under the country’s new banking framework, while the group is now considering a more direct banking presence. Stanbic Bank, Standard Bank’s East African subsidiary, is weighing a greenfield operation as an alternative to acquiring a stake in an existing bank, partly because of Ethiopia’s foreign ownership restrictions. Absa has also expressed interest but has indicated that further liberalisation of ownership rules could be important to its decision to enter the market. Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The reform ended more than five decades of protection for one of Africa’s last major closed banking markets and was designed to increase competition, bring additional capital and expertise into the financial system, expand financial inclusion and accelerate digital banking. African banks position for entry The opening has attracted particular interest from regional banking groups that already operate across multiple African markets. Kenya’s KCB Group has been among the most active potential entrants. The lender has been evaluating Ethiopia as part of its regional expansion strategy and has identified a target entity for possible entry. KCB has said it aims to make an announcement on its Ethiopia plans in 2026. KCB has also received approval to enter Ethiopia and has opened a representative office as it explores opportunities in the market. Fellow Kenyan lender Equity Group has also expressed interest, with the bank engaging Ethiopian authorities over entry conditions. Its established model of serving previously underserved customers across East Africa makes Ethiopia a potentially significant expansion market. Nigeria’s Zenith Bank and FirstBank are also among the African lenders that have been exploring opportunities since Ethiopia opened its banking sector. Their interest reflects the growing international ambitions of Nigeria’s largest banking groups and their push to build pan-African franchises. South Africa’s Standard Bank Group, Africa’s largest bank by assets, has maintained a presence in Ethiopia through its representative office since 2015. The office was re-licensed under the country’s new banking framework, while the group is now considering a more direct banking presence. Stanbic Bank, Standard Bank’s East African subsidiary, is weighing a greenfield operation as an alternative to acquiring a stake in an existing bank, partly because of Ethiopia’s foreign ownership restrictions. Absa has also expressed interest but has indicated that further liberalisation of ownership rules could be important to its decision to enter the market. Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The opening has attracted particular interest from regional banking groups that already operate across multiple African markets. Kenya’s KCB Group has been among the most active potential entrants. The lender has been evaluating Ethiopia as part of its regional expansion strategy and has identified a target entity for possible entry. KCB has said it aims to make an announcement on its Ethiopia plans in 2026. KCB has also received approval to enter Ethiopia and has opened a representative office as it explores opportunities in the market. Fellow Kenyan lender Equity Group has also expressed interest, with the bank engaging Ethiopian authorities over entry conditions. Its established model of serving previously underserved customers across East Africa makes Ethiopia a potentially significant expansion market. Nigeria’s Zenith Bank and FirstBank are also among the African lenders that have been exploring opportunities since Ethiopia opened its banking sector. Their interest reflects the growing international ambitions of Nigeria’s largest banking groups and their push to build pan-African franchises. South Africa’s Standard Bank Group, Africa’s largest bank by assets, has maintained a presence in Ethiopia through its representative office since 2015. The office was re-licensed under the country’s new banking framework, while the group is now considering a more direct banking presence. Stanbic Bank, Standard Bank’s East African subsidiary, is weighing a greenfield operation as an alternative to acquiring a stake in an existing bank, partly because of Ethiopia’s foreign ownership restrictions. Absa has also expressed interest but has indicated that further liberalisation of ownership rules could be important to its decision to enter the market. Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Kenya’s KCB Group has been among the most active potential entrants. The lender has been evaluating Ethiopia as part of its regional expansion strategy and has identified a target entity for possible entry. KCB has said it aims to make an announcement on its Ethiopia plans in 2026. KCB has also received approval to enter Ethiopia and has opened a representative office as it explores opportunities in the market. Fellow Kenyan lender Equity Group has also expressed interest, with the bank engaging Ethiopian authorities over entry conditions. Its established model of serving previously underserved customers across East Africa makes Ethiopia a potentially significant expansion market. Nigeria’s Zenith Bank and FirstBank are also among the African lenders that have been exploring opportunities since Ethiopia opened its banking sector. Their interest reflects the growing international ambitions of Nigeria’s largest banking groups and their push to build pan-African franchises. South Africa’s Standard Bank Group, Africa’s largest bank by assets, has maintained a presence in Ethiopia through its representative office since 2015. The office was re-licensed under the country’s new banking framework, while the group is now considering a more direct banking presence. Stanbic Bank, Standard Bank’s East African subsidiary, is weighing a greenfield operation as an alternative to acquiring a stake in an existing bank, partly because of Ethiopia’s foreign ownership restrictions. Absa has also expressed interest but has indicated that further liberalisation of ownership rules could be important to its decision to enter the market. Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

KCB has also received approval to enter Ethiopia and has opened a representative office as it explores opportunities in the market. Fellow Kenyan lender Equity Group has also expressed interest, with the bank engaging Ethiopian authorities over entry conditions. Its established model of serving previously underserved customers across East Africa makes Ethiopia a potentially significant expansion market. Nigeria’s Zenith Bank and FirstBank are also among the African lenders that have been exploring opportunities since Ethiopia opened its banking sector. Their interest reflects the growing international ambitions of Nigeria’s largest banking groups and their push to build pan-African franchises. South Africa’s Standard Bank Group, Africa’s largest bank by assets, has maintained a presence in Ethiopia through its representative office since 2015. The office was re-licensed under the country’s new banking framework, while the group is now considering a more direct banking presence. Stanbic Bank, Standard Bank’s East African subsidiary, is weighing a greenfield operation as an alternative to acquiring a stake in an existing bank, partly because of Ethiopia’s foreign ownership restrictions. Absa has also expressed interest but has indicated that further liberalisation of ownership rules could be important to its decision to enter the market. Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Fellow Kenyan lender Equity Group has also expressed interest, with the bank engaging Ethiopian authorities over entry conditions. Its established model of serving previously underserved customers across East Africa makes Ethiopia a potentially significant expansion market. Nigeria’s Zenith Bank and FirstBank are also among the African lenders that have been exploring opportunities since Ethiopia opened its banking sector. Their interest reflects the growing international ambitions of Nigeria’s largest banking groups and their push to build pan-African franchises. South Africa’s Standard Bank Group, Africa’s largest bank by assets, has maintained a presence in Ethiopia through its representative office since 2015. The office was re-licensed under the country’s new banking framework, while the group is now considering a more direct banking presence. Stanbic Bank, Standard Bank’s East African subsidiary, is weighing a greenfield operation as an alternative to acquiring a stake in an existing bank, partly because of Ethiopia’s foreign ownership restrictions. Absa has also expressed interest but has indicated that further liberalisation of ownership rules could be important to its decision to enter the market. Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Nigeria’s Zenith Bank and FirstBank are also among the African lenders that have been exploring opportunities since Ethiopia opened its banking sector. Their interest reflects the growing international ambitions of Nigeria’s largest banking groups and their push to build pan-African franchises. South Africa’s Standard Bank Group, Africa’s largest bank by assets, has maintained a presence in Ethiopia through its representative office since 2015. The office was re-licensed under the country’s new banking framework, while the group is now considering a more direct banking presence. Stanbic Bank, Standard Bank’s East African subsidiary, is weighing a greenfield operation as an alternative to acquiring a stake in an existing bank, partly because of Ethiopia’s foreign ownership restrictions. Absa has also expressed interest but has indicated that further liberalisation of ownership rules could be important to its decision to enter the market. Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

South Africa’s Standard Bank Group, Africa’s largest bank by assets, has maintained a presence in Ethiopia through its representative office since 2015. The office was re-licensed under the country’s new banking framework, while the group is now considering a more direct banking presence. Stanbic Bank, Standard Bank’s East African subsidiary, is weighing a greenfield operation as an alternative to acquiring a stake in an existing bank, partly because of Ethiopia’s foreign ownership restrictions. Absa has also expressed interest but has indicated that further liberalisation of ownership rules could be important to its decision to enter the market. Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Stanbic Bank, Standard Bank’s East African subsidiary, is weighing a greenfield operation as an alternative to acquiring a stake in an existing bank, partly because of Ethiopia’s foreign ownership restrictions. Absa has also expressed interest but has indicated that further liberalisation of ownership rules could be important to its decision to enter the market. Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Absa has also expressed interest but has indicated that further liberalisation of ownership rules could be important to its decision to enter the market. Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Other banks that have assessed opportunities include Morocco’s Attijariwafa Bank and Egypt’s CIB, which has maintained a representative office in Ethiopia since 2019. Ownership rules shape entry strategies Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Despite opening the market, Ethiopia has retained significant restrictions on foreign ownership. Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Foreign strategic investors can hold up to 40 percent of a local bank, while aggregate foreign ownership is capped at 49 percent. The rules have complicated acquisition-led expansion strategies for some international banks accustomed to controlling subsidiaries in other African markets. The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The ownership ceiling is therefore encouraging some lenders to consider greenfield operations, strategic partnerships or minority investments rather than outright acquisitions. KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

KCB, for example, has indicated that it would prefer greater control over any Ethiopian acquisition, while Standard Bank is considering building a new operation from the ground up. The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The NBE can, however, consider exceptions in certain circumstances, including where greater foreign ownership could strengthen a bank or help resolve a troubled institution. Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Foreign banks establishing subsidiaries, branches or representative offices must also meet regulatory requirements, including a minimum paid-up capital of 5 billion birr for a banking operation. Why Ethiopia matters The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The attraction of Ethiopia is its scale. With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

With a population of more than 120 million and relatively low banking penetration compared with many other major African economies, the country offers regional lenders an opportunity to expand their customer bases while gaining exposure to a market undergoing broader economic liberalisation. Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Read also: Sidama Bank becomes seventh company to list on Ethiopia’s securities exchange For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

For Ethiopia, the arrival of foreign banks could bring additional capital, technology, risk-management expertise and new financial products while increasing competition among domestic lenders. The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The NBE says its objective is not simply to attract foreign capital but to use foreign participation to accelerate the transformation of the financial system and strengthen its contribution to economic development. “The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

“The primary objective of opening Ethiopia’s financial sector to foreign investment and integrating it with the rest of the financial system is to help our financial sector accelerate its transformation and be in a better position to support and contribute to the country’s economic development,” Ayalew said. He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

He said several international institutions were still conducting market research, risk assessments and due diligence before committing to operations in Ethiopia. “When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

“When a foreign bank tries to go international and invest in foreign jurisdictions, they must do their homework,” he said. “They are doing the necessary market research, due diligence and so on. That movement is currently underway.” The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The NBE is now reviewing the two greenfield applications, while other foreign lenders continue to assess equity partnerships and alternative entry routes. The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The identities of the two applicants and the timing of their potential licences remain undisclosed, but their applications signal that Ethiopia’s historic banking-sector liberalisation is beginning to move from policy reform to actual foreign-bank investment. Related News Nigeria leads Africa’s nearly 1,000bps September rate-cut wave FG turns to blended funding for community-owned rural telecom networks INEC sets election countdown in motion, summons stakeholders Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance.