Kenya-based Equity Bank has signalled its intention to enter Ethiopia’s financial sector, following the government’s recent reforms that permit foreign participation in banking for the first time in over five decades.
Equity Bank Chief Executive Officer James Mwangi (PhD)met with Ethiopian Investment Commission (EIC) Commissioner Zeleke Temesgen (PhD)to discuss the regulatory framework under which the bank could operate.
Zeleke described Ethiopia as a “preferred destination” for financial investors and offered the commission’s full support to facilitate entry. Dr. Mwangi said the move reflects a long-standing plan and aims to serve as a benchmark for other international financial institutions.
Ethiopia’s financial sector liberalisation stems from the Banking Business Proclamation No. 1360/2025 and subsequent directives allowing foreign banks to establish subsidiaries, open branches, or acquire stakes in domestic institutions. The reforms are part of a wider economic liberalisation agenda, encompassing telecommunications, aviation, and logistics.
Equity Bank operates across Kenya, Uganda, Tanzania, South Sudan, Rwanda, and the Democratic Republic of Congo, with experience spanning retail, corporate, and digital banking.
Regional interest in Ethiopia’s market is evident. Kenya Commercial Bank (KCB) is reportedly negotiating a stake in a local bank.
