By Ebi Kesiena
In a landmark move, the National Bank of Ethiopia (NBE) has announced the opening of the country’s banking sector to foreign banks and investors. This historic decision marks a significant shift in Ethiopia’s financial landscape, which was previously exclusive to local investors.
As of June 26, 2025, foreign banks and investors can submit applications to the NBE to obtain banking licences. The central bank has introduced guidelines outlining the process for foreign entities to participate in the Ethiopian banking sector. These guidelines are the result of extensive consultations with various stakeholders over the past year.
The NBE expects the opening of the banking sector to bring numerous benefits, including increased capital, competition, and improved service delivery. The central bank believes that this move will strengthen the efficiency and inclusivity of the financial sector.
The NBE, in a statement, noted that foreign investors can participate in the Ethiopian banking sector through various means, including establishing subsidiaries, opening foreign bank branches, and setting up representative offices.
This development is poised to transform the Ethiopian banking landscape, providing new opportunities for growth, innovation, and collaboration. As the country welcomes foreign banks and investors, it is likely to enhance the overall competitiveness and resilience of the financial sector.
