Momentum continues to build around Ethiopia’s newly liberalized financial sector, as Zenith Bank emerges as the latest major African lender to signal interest in entering the market. The development comes more than a year after lawmakers approved reforms allowing foreign participation in the country’s once-closed banking industry.
Senior executives from Zenith Bank, including its president and board chairperson, were in Addis Ababa this week for high-level discussions with key Ethiopian authorities. Meetings were held with National Bank of Ethiopia Governor Eyob Tekalign (PhD) and officials from the Ethiopian Investment Commission (EIC), underscoring the seriousness of the bank’s engagement and the government’s openness to foreign financial institutions.
Ethiopian officials used the occasion to highlight the country’s investment appeal. Zinabu Yirga, deputy commissioner of the EIC, said Ethiopia is prepared to welcome credible and large-scale international banks. He pointed to Ethiopia’s position as the third-largest economy in Sub-Saharan Africa, the steady expansion of its trade links, and the scale of ongoing infrastructure and industrial projects as factors creating a strong foundation for long-term financial sector investment.
From Zenith Bank’s perspective, Ethiopia’s recent policy direction appears to align closely with its regional growth ambitions. Olukayode Akinbinu, head of international market expansion at Zenith, said the bank is keen to tap into opportunities arising from the country’s fast-growing economy, ongoing economic reforms, and the gradual liberalization of banking and financial services.
He noted that Zenith is currently assessing potential investment options, with particular attention to digital and technology-driven financial solutions, as well as financing large, government-led development projects. These areas, he suggested, offer significant scope for impact and sustainable returns in Ethiopia’s evolving financial landscape.
Headquartered in Lagos, Nigeria, Zenith Bank is one of Africa’s leading financial institutions, with operations spanning several African countries and key international financial centers. The bank provides a broad range of services, including corporate and retail banking, digital finance, and infrastructure financing.
Zenith’s expression of interest adds to a growing list of African banks eyeing Ethiopia’s market. Earlier this year, sources at the National Bank of Ethiopia indicated that Kenya’s KCB Group Limited is expected to become the first foreign bank to formally enter the sector under the government’s liberalization agenda.
The legal framework enabling this shift was strengthened in November 2024, when Parliament amended the Banking Business Proclamation. The revised law allows foreign banks to enter Ethiopia through four routes: establishing a subsidiary, acquiring shares in an existing domestic bank, opening a branch, or setting up a representative or liaison office. Foreign ownership in any single bank is capped at 40 percent, while domestic banks are restricted from selling more than 49 percent of their authorized shares to foreign investors.
Together, these developments signal a cautious but deliberate opening of Ethiopia’s financial sector, with authorities seeking to balance foreign participation, domestic stability, and long-term economic growth.