Equity Bank Enters Ethiopia, Seeks to Boost Financial Inclusion

🤖 EQUITY BANK FROM KENYA WANTS TO COME TO ETHIOPIA'S BANKING MARKET! 💰 The big bank from Kenya, called Equity Bank, has said it wants to start doing business in Ethiopia. This is because Ethiopia is now letting foreign banks enter its banking industry. 🏦 The boss of Equity Bank, James Mwangi, met with the head of the investment commission in Ethiopia, Zeleke Temesgen. Zeleke said the government will support Equity Bank as it expands into Ethiopia. 🤝 Equity Bank is a very big bank in East Africa, with over 16 million customers in countries like Kenya and Congo. Equity Bank has been wanting to work in Ethiopia for a while, and now that Ethiopia is allowing foreign banks, Equity Bank sees a great chance to do that. 🌍 As Ethiopia's economy continues to grow and change, having experienced banks like Equity Bank come in will be good. It will bring new ideas and more banking services for the people of Ethiopia. 📈 What do you think will happen when a big Kenyan bank like Equity Bank starts operating in Ethiopia? Share your thoughts! 💭 #EquityBank #EthiopiaBank #EconomyGrowth #ForeignInvestment #BankingServices

Ethiopia is opening up two of its most tightly controlled industries, and Kenyan companies are leading the charge. 📱 In 2021, Safaricom entered Ethiopia with an $850M license, breaking Ethio Telecom’s monopoly. By 2023, it was rolling out M-Pesa to a market of 120M people, most of whom are still unbanked. 🏦 In 2024, Ethiopia passed reforms allowing foreign banks to operate. Soon after, KCB Group entered talks with regulators to become the first foreign lender on the ground. Could it be because of, 💠 Proximity & strong diplomatic ties with Ethiopia. 💠 Proven models: Safaricom’s M-Pesa (30M+ users in Kenya) and KCB’s agency banking fit Ethiopia’s needs. 💠 Preparedness: KCB has had a representative office in Addis since 2015. 💠 Risk appetite: Safaricom has invested over $1.2B in rollout despite early losses. But here’s the big question: Why aren’t other neighbors making similar moves? Ethiopia’s other neighbors are either too small (Djibouti), too unstable (Sudan), too closed (Eritrea), or lack Kenya’s corporate scale (Uganda, Tanzania). And the bigger question: Kenya’s first movers, Safaricom and KCB, have the advantage of timing, expertise, and trust. But will they maintain dominance as Ethiopia matures, or will global players with deeper pockets eventually overtake them?

Even first movers bring old thinking and outdated methods, but true sustainability is not yet achieved. The challenge now is turning early entry into lasting, sustainable impact.

Equity Bank Limited and KCB Bank Group are strategically poised to expand into Ethiopia’s newly liberalized banking sector. With Ethiopia’s population exceeding 120 million and banking penetration still low, this move presents a significant growth opportunity for these Nairobi-headquartered banks. Leveraging strong regulatory engagement, local partnerships, and digital innovations, this expansion signals a new era of regional financial integration. https://lnkd.in/duccTHAw

Commercial Bank of Ethiopia Partners with Ramad Pay Inc to Facilitate U.S. Remittances #EBR_News Sep 27, 2025 The Commercial Bank of Ethiopia (CBE) has signed a memorandum of understanding (MoU) with Ramad Pay Inc, a North America-based money transfer company, to streamline remittance flows from the Ethiopian diaspora in the United States. The partnership aims to provide a legal, efficient, and cost-effective channel for sending money to Ethiopia. #CBE President Abe Sano emphasized that the collaboration will benefit both citizens and the national economy by formalizing remittance inflows and expanding the bank’s international reach. He highlighted the significance of serving the large Ethiopian community in North America and creating a favorable environment for secure and accessible hawala services. Ramad Pay CEO Aden Hussein expressed enthusiasm about partnering with Ethiopia’s largest bank, citing #CBE’s extensive customer base, technological capabilities, and nationwide presence as key advantages. The digital hawala service will enable users to send money seamlessly while avoiding excessive fees and saving time. The initiative aligns with broader efforts to enhance financial inclusion and leverage diaspora contributions for national development. By digitizing remittance processes, the partnership seeks to increase transparency, customer trust, and the volume of formal fund transfers. #CBE #RamadPay #Remittances #Ethiopia #Diaspora #Hawala #FinancialInclusion #Banking #EBR #Ethiopia #Ethiopian #EBRNews #EBR_News #EthiopianBuisnessReview Follow EBR for the latest business news, trends, and expert analysis: Telegram (https://t.me/ebr_news) Facebook (https://lnkd.in/ebVxnmpW) LinkedIn (https://lnkd.in/eAVk65Xv) X (Twitter) (https://x.com/EBRnews)

Equity bank holds talks to enter #Ethiopia’s banking sector Equity Bank Group has taken a major step toward expanding into Ethiopia after its Chief executive, James Mwangi (PhD), held talks with Zeleke Temesgen (PhD), Ethiopian Investment Commission (EIC) Commissioner, on Friday, according to Kenyan media. Temesgen said the commission is ready to provide the necessary cooperation and support to facilitate the bank’s entry into the country’s financial sector. Mwangi added that Equity Bank had long planned to enter Ethiopia and that the government’s decision to open the financial sector to foreign investors created a favorable opportunity. Headquartered in #Nairobi, Equity is among the largest banks in East and Central Africa by customer base and assets, with operations in Kenya, the Democratic Republic of Congo, Uganda, Rwanda, South Sudan, and Tanzania. #sourceAddisstandared #NBE #Equtiybank

🏦 Interbank Money Market (IMM) in Ethiopia Definition: A formal platform where commercial banks lend and borrow short-term funds (typically overnight to 7 days) to manage liquidity needs. Regulators Involved: - National Bank of Ethiopia (NBE) - Ethiopian Capital Market Authority (ECMA) Key Functions & Importance: - 💧 Liquidity Management: Enables banks to cover shortfalls or invest excess reserves, ensuring smooth daily operations. - 📊 Monetary Policy Transmission: - IMM is the main channel for NBE’s monetary policy. - Influences interbank interest rates, which affect broader lending rates and economic activity. - Guided by tools like the National Bank Rate (NBR) and interest rate corridor. - 💰 Price Discovery: - Establishes market-driven short-term interest rates. - Acts as a signal of liquidity and financial health in the banking sector. Strategic Impact: IMM transitions Ethiopia’s financial system from centralized control to market-based operations—central to ECMA/NBE’s modernization agenda.

Why Africa’s banking giants are racing to enter Ethiopia Over the past seven months, four of Africa’s largest lenders — KCB Group, Equity Group, Banque pour le Commerce et l’Industrie Mer Rouge (BCIMR), and Standard Bank Group — have signalled plans to enter Ethiopia’s opening financial market. The growing appetite follows sweeping reforms implemented over the past two years aimed at liberalising and modernising the economy after decades of tight state control. As part of a broader reform programme, the government has floated the birr to eliminate multiple exchange rates, launched a stock exchange, and rolled out new monetary tools including a central bank policy rate to anchor stability. Read the full story here: https://lnkd.in/eeR6c2hV

After half a century, Ethiopia's financial sector is opening up, and the biggest players in African banking are lining up! At least four major banks from three different African nations have formally expressed interest to enter the Ethiopian market!

🚀 Ethiopia hits 1 Trillion ETB in Interbank Lending! In less than a year since launch, Ethiopia’s Interbank Money Market Platform has transformed liquidity management: ✅ Banks now lend/borrow short-term funds via the Ethiopian Securities Exchange ✅ Trades already exceed 1 Trillion ETB (Stockmarket.et) ✅ Rates kept within ±3% of the National Bank Rate (Addis Standard) 💡 Why it matters: #Better liquidity flow between banks #Stronger monetary policy transmission #More transparent & resilient financial system #Of course, challenges remain (FX pressure, small bank participation, infrastructure gaps) — but this is a game-changing milestone for Ethiopia’s financial sector. 👉 Do you think this will make credit cheaper and more accessible in Ethiopia? #Ethiopia #Finance #Banking #Liquidity #InterbankMarket