The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Africa: Ethiopia takes a different path

The government insists that its banking sector will remain closed to external investment. But can the country’s economy thrive without better access to international credit?

Ethiopia light railway-R-600

A man walks beside the electrified light railway track in Ethiopia's capital Addis Ababa

Ethiopia’s banking sector will not be open to international investment for at least five years,” according to Abraham Tekeste Meskel, state minister, ministry of finance and economic development in Ethiopia. He made this declaration at a summit in Addis Ababa in October hosted by The Economist. 

Yet Meskel’s statement did not stop delegates posing the same question about the country’s banking sector throughout the conference. It came up in discussions about agriculture, manufacturing and the rise of Ethiopia’s consumer class. Each time the answer was the same; Ethiopia’s financial services sector will not be opened to international investment for the foreseeable future

But it will have to open eventually. In 2003 Ethiopia applied for World Trade Organization membership. One of the main preconditions for joining is the liberalisation of financial markets. “People looking at Ethiopia are completely preoccupied by the financial services sector because this tends to be seen as one of the most profitable sectors in developing African countries,” says CEO of state-owned Ethiopian Airlines, Tewolde GebreMariam.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree