Ethiopia’s Prime Minister Abiy Ahmed has announced that his government is readying to open up
the country’s banking sector so that foreign banks can set up operations and compete with the
18 local banks currently operating in the country.
“We will bring foreign banks because we need additional wealth and hard currency.
Regarding this, the government is now preparing a policy amendment. Once preconditions are met and banks are prepared, we will (implement) that,” he told Parliament on Wednesday.
Back in 2018, the Ethiopian Prime Minister first announced his intention to reform and open the country’s banking and telecom sectors to foreign investors.
Apparently, he recognised that these are two important sectors that could potentially contribute much more to the country’s GDP, provided the right investments are made.
Consequently, the reforms began in 2021 with the telecom sector. Business Insider Africa reported that a consortium led by Safaricom (and consisted of Vodacom, Vodafone and Sumitomo) had won a telecom license to operate in the country.
The consortium is now set to become the second telecom operator in the country besides state-owned Ethio Telecom.
Right now, the impending banking reform in Ethiopia presents an opportunity for some of Africa’s biggest banks to position themselves in the Horn of Africa country.
MG/GIK/APA