ZamZam Bank Review

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About ZamZam Bank

ZamZam Bank S.C. holds a unique and historic position in Ethiopia’s financial sector: it is the country’s first and only full-fledged Interest-Free Bank (IFB). Operating entirely on Islamic finance principles, ZamZam Bank offers a comprehensive range of Sharia-compliant banking products and services to all Ethiopians — regardless of religion — who prefer ethical, interest-free financial solutions.

ZamZam Bank’s journey to becoming a fully licensed bank spans more than a decade of persistence. Its founders began lobbying the National Bank of Ethiopia (NBE) for a full-fledged interest-free banking license as early as 2007. After 13 years of advocacy and regulatory dialogue, the NBE finally granted a full banking license in late 2019 — a landmark moment for Ethiopia’s Muslim community and for Islamic finance in East Africa. The bank formally commenced full banking operations on June 8, 2021.

Today, ZamZam Bank is a rapidly growing institution with over 500,000 customers, 89+ branches, more than 1,500 employees, and total assets of Birr 16.6 billion as of June 30, 2025. Under the leadership of CEO Melika Bedri and Board Chairman Dr. Nassir Dino, the bank is pursuing an ambitious vision to become the leading Sharia-compliant, all-inclusive bank in Africa by 2030.

What Makes ZamZam Bank Unique

ZamZam Bank is not simply an Islamic banking window within a conventional bank — it is a fully dedicated, stand-alone interest-free bank. Every product, every service, every transaction, and every internal financial operation is structured in full compliance with Sharia principles, supervised by the bank’s dedicated Sharia Supervisory Board. This distinguishes ZamZam Bank from other Ethiopian banks that offer IFB services as a window alongside conventional interest-based banking.

The bank is also unique in its scope of ambition. While most Ethiopian private banks have domestic growth as their primary goal, ZamZam Bank’s stated vision is pan-African leadership in Islamic finance — positioning Ethiopia as the gateway for Sharia-compliant banking across the continent.

Sharia Supervisory Board

All of ZamZam Bank’s products, services, and internal financial practices are reviewed and certified by an independent Sharia Supervisory Board. This body is composed of qualified Islamic scholars with expertise in both Sharia jurisprudence and contemporary finance. Their role is to ensure that every banking activity strictly adheres to Islamic finance standards, including those set by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the Islamic Financial Services Board (IFSB).

Awards & Recognition

• Global Islamic Finance Award (GIFA): ZamZam Bank has received the Global Islamic Finance Award for two consecutive years — one of the most prestigious recognitions in the Islamic finance industry worldwide.
• Best Bank — Global Brands Magazine 2022: ZamZam Bank was recognized as the Best Bank in Ethiopia by Global Brands Magazine in 2022, reflecting its exceptional growth, innovation, and customer satisfaction in its early years of operation.
• International Islamic Banking and Takaful Awards: Held in Addis Ababa in August 2024, ZamZam Bank was recognized at this internationally hosted awards event for its contributions to the growth of Islamic finance in Ethiopia.

Deposit Products

ZamZam Bank offers a comprehensive suite of Sharia-compliant deposit accounts, structured according to the Islamic finance contracts of Wadi‘ah (safekeeping) and Mudarabah (profit-sharing). No interest is paid or charged on any account; instead, deposit products are structured to either guarantee capital (Wadi‘ah) or share profits from permissible investments (Mudarabah).

Mudarabah Savings Account

The Mudarabah Savings Account is ZamZam Bank’s flagship profit-sharing deposit product. The depositor provides capital, and the bank acts as the fund manager (Mudarib), investing the funds in Sharia-compliant activities. Profits generated are shared between the bank and the depositor according to a pre-agreed ratio. In the event of a loss not caused by negligence, the depositor bears the financial risk while the bank loses its management effort.

This account is available to individuals, organizations, and institutions who wish to earn a return on their savings without engaging in interest-based transactions. It is a demand-accessible account, allowing withdrawals at any time.

Wadi‘ah Savings Account

The Wadi‘ah account is based on the Islamic concept of safekeeping (Wadi‘ah Yad Dhamanah). The bank accepts the deposit as a trust and guarantees the full return of the deposited amount at any time. The bank may use the deposited funds for permissible purposes at its discretion but is not obligated to pay any profit to the depositor, though it may do so voluntarily as a gift (Hibah).

ZamZam Bank offers the following specialized Wadi‘ah accounts:

• Wadi‘ah Kids Savings Account: Designed for children below the age of 18, with no minimum balance requirement. This account instills financial discipline from a young age through an easy-to-open, parent-approved savings structure that is both educational and Sharia-compliant.
• An-Nissa Wadi‘ah Savings Account: A savings account designed exclusively for women, in line with ZamZam Bank’s commitment to women’s financial empowerment. It offers a dedicated, Sharia-compliant savings environment tailored to the financial needs and aspirations of female customers.
• ZamZam SafeBox: A specialized Wadi‘ah account for customers who wish to hold funds in a secure, non-transactional deposit. It functions as a digital safe deposit facility, where the bank holds funds in a dedicated account that is not used for investment purposes.

Amana Account

The Amana Account is a current (demand) deposit account structured on the principle of Amanah (trust). It is a non-interest-bearing, non-profit-sharing account designed for individuals and businesses requiring a transactional account for day-to-day operations. The bank holds the funds as a trustee and is obligated to return them on demand.

Foreign Currency Account

ZamZam Bank offers Sharia-compliant foreign currency savings and current accounts, allowing customers to hold deposits in US Dollars, Pound Sterling, Euro, and other major currencies. These accounts are structured on Wadi‘ah principles and are designed for both resident Ethiopians with foreign currency income and non-resident diaspora customers.

Diaspora Account

ZamZam Bank provides a dedicated diaspora banking account for Ethiopian nationals living and working abroad. The account is denominated in foreign currency and provides diaspora customers with a secure, Sharia-compliant way to save and invest in Ethiopia from overseas. It supports international remittances and is accessible through the bank’s mobile banking platform.

Other Special Accounts

• Labbaik Hajj Savings Account: A specialized savings account for customers who are planning and saving for the Hajj or Umrah pilgrimage. It provides a structured, goal-oriented savings vehicle that helps customers accumulate the funds needed for their spiritual journey.
• Cooperative Society Account: A dedicated account for cooperative societies and community organizations seeking a Sharia-compliant banking relationship.
• NGO & Institutional Account: Tailored accounts for non-governmental organizations, charities, and other non-profit institutions that require Sharia-compliant financial services.

Financing Products

ZamZam Bank offers a full spectrum of Islamic financing products, covering personal, business, agricultural, trade, and infrastructure needs. All financing arrangements are free from interest (riba) and are structured according to recognized Islamic financial contracts.

Murabahah — Cost-Plus-Profit Financing

Murabahah is ZamZam Bank’s primary and most widely used financing product, applicable across all sectors of the economy. Under this arrangement, the bank purchases a commodity, asset, or property on behalf of the customer and resells it to the customer at a disclosed cost plus an agreed profit margin. The customer then repays the total amount (cost + profit) in installments over the agreed period.

Murabahah financing is available for:

• Purchase of goods, equipment, and raw materials for businesses
• Import financing for importers
• Vehicle purchase financing
• Construction and real estate financing
• Agricultural input and machinery procurement
• Consumer goods and household items

Mudarabah — Profit-Sharing Investment Financing

Mudarabah financing is an investment partnership in which ZamZam Bank provides the full capital (Rab al-Mal) and the customer manages the business or project (Mudarib). Profits generated are distributed between the bank and the customer according to a pre-agreed ratio. Financial losses, if any, are borne solely by the bank, while the customer loses the value of their time and effort. This product is typically used for business expansion, project financing, and entrepreneurial ventures.

Musharakah — Partnership Financing

Musharakah is a joint venture or partnership financing arrangement in which both ZamZam Bank and the customer contribute capital to a business or project. Profits are shared according to an agreed ratio, while losses are shared in proportion to each party’s capital contribution. This product is designed for larger business projects, real estate development, and long-term investment financing.

Ijarah — Lease Financing

Ijarah is ZamZam Bank’s leasing product, in which the bank purchases an asset and leases it to the customer for an agreed rental payment over a specified period. At the end of the lease term, ownership of the asset may transfer to the customer (Ijarah Muntahia Bittamleek), depending on the agreement. Ijarah is commonly used for:

• Vehicle and machinery leasing
• Equipment financing for businesses
• Real estate and property leasing
• Financing of productive assets for agricultural and industrial use

Istisna‘ — Manufacturing & Construction Financing

Istisna‘ is a forward-sale contract for the manufacture, construction, or fabrication of specific goods or assets according to agreed specifications. ZamZam Bank finances the production or construction on behalf of the customer, with payment made in advance, in installments, or upon delivery. This product is primarily used for:

• Construction and real estate development financing
• Manufacturing and industrial project financing
• Infrastructure development financing
• Custom order financing for businesses

Bai‘ Salam — Advance Purchase Financing

Bai‘ Salam is an advance payment contract for the future delivery of goods. ZamZam Bank pays the full purchase price upfront to the seller (typically a farmer or producer), and the goods are delivered at a specified future date. This product is particularly valuable for agricultural financing, enabling farmers to access capital at the time of planting in exchange for delivering their produce at harvest time.

Qard Al-Hassan — Benevolent Interest-Free Loan

Qard Al-Hassan is an interest-free, fee-free loan extended by ZamZam Bank for social and humanitarian purposes. The borrower is required only to repay the principal amount, with no additional charges of any kind. This product reflects ZamZam Bank’s deep commitment to social responsibility and financial inclusion, providing support to individuals in genuine financial need who cannot access other forms of financing.

Kafalah — Islamic Guarantee

Kafalah is ZamZam Bank’s Islamic guarantee product, in which the bank provides a written guarantee on behalf of a customer to a third-party beneficiary (local or international). If the customer fails to meet their financial obligation, ZamZam Bank undertakes to fulfill the payment. Kafalah is used for:

• Bid bonds and performance bonds for contractors
• Advance payment guarantees
• Guarantees in favor of foreign beneficiaries
• Government and institutional tender guarantees

Diaspora Financing

ZamZam Bank offers a dedicated suite of Sharia-compliant financing products specifically for Ethiopian diaspora customers who wish to invest in Ethiopia from abroad:

• Diaspora Business Financing: Murabahah or Musharakah-based financing for diaspora-owned businesses in Ethiopia.
• Diaspora Housing/Mortgage Financing: Ijarah or Murabahah-based financing for the purchase, construction, or renovation of residential property in Ethiopia.
• Diaspora Vehicle Financing: Murabahah-based financing for diaspora customers purchasing vehicles in Ethiopia.
• Diaspora Consumer Financing: Flexible short-term financing for personal needs of diaspora customers visiting or investing in Ethiopia.

Digital Banking

ZamZam Bank has positioned digital innovation as a core strategic pillar, developing Sharia-compliant digital solutions that are among the most technologically advanced in the Ethiopian banking sector.

ANSAR — AI-Powered Sharia-Compliant Digital Financing

ANSAR is ZamZam Bank’s flagship digital innovation — Ethiopia’s first Sharia-compliant, AI-powered digital financing platform for individuals and MSMEs. Developed in collaboration with KIFIYA Financial Technology and ZamZam Bank’s internal digital product team, ANSAR was officially launched at Haile Grand Hotel and represents a major milestone in Islamic fintech in Africa.

ANSAR operates as a Buy Now, Pay Later (BNPL) platform connecting three key stakeholders — the customer, the product supplier, and ZamZam Bank — in a fully digital, Sharia-compliant transaction ecosystem. Key features include:

• No collateral required — creditworthiness assessed using AI-driven behavioral and transactional data
• Instant digital approval process with no branch visits required
• Fully compliant with Islamic finance principles — structured as a Murabahah digital sale arrangement
• Designed to serve both individual consumers and Micro, Small, and Medium Enterprises (MSMEs)
• Specifically designed to empower women entrepreneurs by removing the traditional barriers of collateral and physical branch access
• Secure, efficient, and flexible financing application entirely through a smartphone

ZamZam Mobile Banking Application

ZamZam Bank’s mobile banking app provides customers with comprehensive, around-the-clock access to all banking services from their smartphone. A key distinguishing feature is that the app is capable of operating without a full internet connection — using USSD technology to transmit commands to the core banking system when internet connectivity is limited. This makes it one of the most accessible mobile banking solutions in Ethiopia, particularly for customers in areas with poor network coverage.

Available on both iOS and Android platforms, the app supports:

• Account balance inquiries and transaction history
• Fund transfers between ZamZam Bank accounts and other banks
• Bill payments and utility payments
• Financing applications and repayment tracking
• Foreign exchange rate information
• Branch and ATM locator
• Push notifications and real-time transaction alerts

USSD Banking

For customers who do not have smartphones or consistent internet access, ZamZam Bank provides a full-featured USSD banking service accessible from any mobile phone. USSD banking allows customers to check balances, transfer funds, pay bills, and access basic account services by dialing a short code — making ZamZam Bank’s services accessible to customers across all connectivity environments.

Card Banking — ZamZam ATM Debit Card

ZamZam Bank issues ATM debit cards providing customers with 24/7 access to their accounts through the bank’s ATM network and point-of-sale terminals. Card services include:

• Cash withdrawals at any ZamZam Bank ATM
• Balance inquiries and mini-statement printing
• PIN changes
• Point-of-sale purchases at merchant terminals
• Inter-bank transfers through the national EthSwitch network

International Banking

ZamZam Bank provides a comprehensive range of Sharia-compliant international banking services to support Ethiopia’s trade, investment, and remittance flows.

Trade Services

ZamZam Bank facilitates international trade for Ethiopian importers and exporters through the following Sharia-compliant instruments:

• Import Letters of Credit: Murabahah-structured LC facilities for importers, ensuring payment to international suppliers upon presentation of compliant shipping documents.
• Export Letters of Credit: LC services for Ethiopian exporters, providing payment certainty from international buyers through ZamZam Bank’s correspondent banking network.
• Cash Against Documents (CAD): Documentary collection services for both imports and exports.
• Advance Payments (Telegraphic Transfer): International wire transfer services for trade-related advance payments.
• Kafalah Trade Guarantees: Islamic guarantee instruments (bid bonds, performance bonds, advance payment guarantees) supporting contractors and businesses in international tenders.

Foreign Exchange Services

ZamZam Bank provides competitive foreign exchange services for individuals and businesses, including buying and selling of major foreign currencies, foreign exchange for travel and business purposes, and currency exchange at all branches.

International Remittance Services

ZamZam Bank has established partnerships with several of the world’s leading money transfer operators to provide fast, reliable, and affordable international remittance services to and from Ethiopia. The bank’s remittance partners include:

• Dahabshiil — Africa’s largest money transfer company
• Ria Money Transfer
• Western Union
• MoneyGram
• Other international money transfer partners

Remittances can be received in cash at any ZamZam Bank branch or credited directly to the recipient’s ZamZam Bank account.

Foreign Currency Savings

ZamZam Bank offers Sharia-compliant foreign currency savings accounts for both resident Ethiopians with foreign currency income and diaspora customers. Accounts are available in US Dollars, Pound Sterling, Euro, and other major currencies, structured on Wadi‘ah safekeeping principles.

ZamZam Bank — Credit Score, Worthiness & Credit History

Credit Score

ZamZam Bank does not carry a formal published credit score, consistent with the broader Ethiopian banking sector, where formal credit rating infrastructure is still developing. However, the bank’s financial indicators and track record provide a clear view of its credit standing:

• Asset Quality: ZamZam Bank’s financing portfolio is structured through Sharia-compliant contracts (primarily Murabahah) that include built-in risk-sharing mechanisms. The bank’s 72% financing-to-assets ratio — one of the highest in the Ethiopian private banking sector — reflects active and productive deployment of its deposit base into the economy.
• Rapid Asset Growth: Total assets grew 77% year-on-year to reach Birr 16.6 billion by June 30, 2025 — a growth rate that substantially exceeds the Ethiopian banking sector average and signals strong operational momentum.
• AAOIFI & IFSB Compliance: ZamZam Bank’s adherence to AAOIFI and IFSB standards — the international benchmarks for Islamic financial institution governance and reporting — provides a higher level of transparency and standardization than many domestic Ethiopian banks.
• Sharia Supervisory Board Oversight: Independent, ongoing Sharia audit and supervision of all products and operations adds a layer of governance discipline that is unique to ZamZam Bank in Ethiopia.

Credit Worthiness

ZamZam Bank’s creditworthiness is reflected in its rapid financial growth, strong profitability, international award recognition, and institutional partnerships. Key financial indicators are as follows:

ZamZam Bank’s net profit of Birr 940.8 million in 2024/25 represents a more than sixfold increase from the Birr 148 million pre-tax profit recorded in 2023/24, demonstrating an extraordinary earnings growth trajectory. With total income reaching Birr 2.2 billion, the bank has firmly entered the ranks of Ethiopia’s meaningfully profitable private banks within just its fourth year of full operations.

Credit History

Despite being one of the youngest commercial banks in Ethiopia, ZamZam Bank has established a compelling and clean credit history in a remarkably short time:

• Pioneer Status: As Ethiopia’s first and only full-fledged Interest-Free Bank, ZamZam Bank has operated since June 2021 without any reported regulatory sanctions, license issues, or compliance violations.
• Explosive Growth Trajectory: Total assets have grown from Birr 7.49 billion in FY 2022/23, to Birr 9.3 billion in FY 2023/24, to Birr 16.6 billion by June 30, 2025 — a near-doubling in a single fiscal year — demonstrating exceptional deposit mobilization, customer growth, and financing deployment.
• Rapid Profitability: The bank’s net profit grew from Birr 148 million in 2023/24 to Birr 940.8 million in 2024/25 — a growth rate of over 535% in a single year — reflecting strong management, improving operational efficiency, and growing market confidence in the Islamic banking model.
• Global Islamic Finance Award: Winning the GIFA for two consecutive years confirms ZamZam Bank’s recognition by the international Islamic finance community as a credible, well-governed, and high-impact institution.
• World Bank Partnership: ZamZam Bank’s collaboration with the World Bank to strengthen its financial foundation and develop competitive products reflects a high level of institutional credibility with one of the world’s most selective development finance partners.
• High Financing Deployment Rate: A 72% financing-to-assets ratio since inception reflects disciplined and productive use of customer deposits, with 72% of all assets deployed directly into the Ethiopian economy through Sharia-compliant financing.

Financial Report — Fiscal Year 2024/25

ZamZam Bank presented its 2024/25 annual financial results at its General Shareholders’ Assembly held at Millennium Hall, Addis Ababa. The results represent the bank’s fourth full fiscal year of commercial banking operations and its strongest performance to date across all key financial metrics.

Income Statement Highlights

ZamZam Bank’s total income of Birr 2.2 billion in 2024/25 represents a transformational leap from the Birr 850+ million recorded the prior year. The bank’s net profit of Birr 940.8 million brings it to the brink of the billion-Birr profit milestone in just its fourth year of operations — a milestone that most Ethiopian banks take a decade or more to reach.

Balance Sheet Highlights

Total assets surged by 77% during the fiscal year, reaching Birr 16.6 billion by June 30, 2025 — one of the highest single-year asset growth rates among Ethiopian private banks. The bank’s CEO, Melika Bedri, noted that ZamZam Bank’s deposit figures were the highest among Ethiopia’s third-generation banks as of December 2024, reflecting exceptional public trust and market penetration in a highly competitive environment.

Customer & Network Growth

Year-on-Year Financial Trajectory

ZamZam Bank’s four-year financial trajectory is extraordinary by any measure. From a standing start in June 2021, the bank has grown total assets by over 120% from its FY 2022/23 base, deposits by over 50%, income by approximately 159% in a single year, and net profit by over 535% in the same period. This positions ZamZam Bank as one of the fastest-growing banks in Ethiopian banking history.

Strategic Outlook

ZamZam Bank’s leadership has articulated a clear and ambitious strategic direction for the coming years:

• African Leadership: Dr. Nassir Dino, Board Chairman, has reiterated the bank’s ambition to become the leading Islamic finance bank on the African continent — not merely the leading one in Ethiopia — through continued product innovation and geographic expansion.
• Foreign Bank Competition Preparedness: CEO Melika Bedri has publicly acknowledged the forthcoming entry of foreign banks into the Ethiopian market and is actively collaborating with the World Bank and other international financial institutions to strengthen ZamZam Bank’s competitive positioning.
• ANSAR Digital Expansion: The ANSAR Sharia-compliant digital lending platform is expected to be a key growth driver, scaling access to collateral-free, AI-powered Islamic finance for millions of MSMEs and women entrepreneurs across Ethiopia.
• Capital Expansion: With a subscribed capital of Birr 1.683 billion against a paid-up capital of Birr 872 million, the bank is actively calling up additional share capital to strengthen its balance sheet and approach the NBE’s Birr 5 billion minimum paid-up capital threshold.
• Branch Network Expansion: Continued expansion of ZamZam Bank’s branch and agent banking network to reach underserved communities, particularly in regions with large Muslim populations.

Corporate Social Responsibility (CSR)

ZamZam Bank’s social responsibility initiatives are rooted in its founding mission of inclusive, community-centered banking:

• Education Financing: ZamZam Bank finances education for low-income students through Qard Al-Hassan (interest-free benevolent loans), removing financial barriers to educational access for Ethiopia’s most vulnerable communities.
• Women’s Empowerment: Through the An-Nissa Wadi‘ah Savings Account, ANSAR’s dedicated women’s financing channel, and priority access to Murabahah business financing, ZamZam Bank actively works to close Ethiopia’s gender financial inclusion gap.
• ZamZam Charity: The bank operates a dedicated ZamZam Charity program that channels a portion of its social responsibility funds toward humanitarian assistance, disaster relief, and community welfare projects.
• Community Development: ZamZam Bank supports community development projects across Ethiopia, with a particular focus on regions with historically low access to formal financial services.
• Financial Inclusion for the Religiously Excluded: By providing fully Sharia-compliant banking, ZamZam Bank has brought hundreds of thousands of Ethiopian Muslims — who previously avoided the formal banking system due to religious objections to interest — into the formal financial sector for the first time.
• International Islamic Finance Community: ZamZam Bank actively participates in global Islamic finance forums, standards bodies (AAOIFI, IFSB), and award programs, helping to raise Ethiopia’s profile within the international Islamic finance community.

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