Most significant development in African banking in years

By Richard Ketley, Partner | Financial Services Strategy

?In a significant shift for African banking, the Ethiopian government has approved a far-reaching policy that will soon open the country’s banking sector to foreign competition.

The long-awaited decision taken by the Ethiopian Council of Ministers on 3 September is more extensive than anticipated. Foreign banks will be able to enter the market as wholly-owned subsidiaries, branches or in a joint venture with a local bank.??

This liberalisation move represents the most significant development in African banking in years. To understand its importance, consider how the banking sector in Ethiopia compares to its East African peers:

?Levels of financial inclusion?

Access to debit cards?and?branches per?100k?people

Share of assets of banks in selected East African countries?

Genesis’ financial services team has been covering the Ethiopian market since 2019 and is already working with local and foreign banks to prepare for the opening of the sector. Read more about our work here.