Ethiopia looks to unlocking its potential

In these early months of 2023, we look forward to a year of prosperity in Ethiopia. What changed? Why the optimism?

A few developments point to a more stable and improved business environment for the country. In no particular order, here are four main ones that excite us:

Competition in the telecom sector.?Uncharacteristic for a country of 100 million people, until recently Ethiopia only had a single telecom company serving the entire population. In 2021, this changed with the award of a telecom licence to the first-ever private company in the sector. Majority owned by Kenya’s Safaricom, it launched services in 2022. The more competitive market is expected to improve access to the internet for millions of people, bolster the doing business environment and anchor the digitisation of services.?

Opening up of the banking sector.?For nearly half a century, the banking sector has been shielded from foreign competition. It has also been starved of available global capital, experience and know-how. This is all expected to change after the Council of Ministers approved a policy that opens up the banking sector. A lot of interest has already been sparked, especially by regional banks attracted by the potential of the largely untapped market for financial services in Ethiopia. A more competitive and modern banking sector will contribute to greater financial inclusion and better products and services for all Ethiopians.??

Establishment of capital market.?Another major shortcoming of the financial space is the lack of a developed financial market. This has limited access to long-term equity and debt finance. It has been to the detriment of the business community. But soon no more. Following the passing of the capital markets proclamation, the first stock exchange is set to be established in the coming year. In December, the board of the capital market regulatory body was appointed and a director-general was selected.?

Peace.?Political instability has hampered Ethiopia from realising the full potential of its economic growth. The war in the northern part of the country has been a major obstacle. There is still much to be done to improve the situation on the ground, but it is hoped that the peace accord signed in early November and currently under implementation will form the foundation for long-lasting peace, and prosperity.

As Ethiopia looks forward and strives to unlock its potential, Genesis is eager and committed to take the journey alongside the country.?

?Best wishes

Richard Ketley , and Ndodzo Mawela , Christian Tesfaye Gebremariam and Nahom Shiferaw?in Addis Ababa

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