Addis Ababa, November 1, 2023 – In a significant move towards fostering unity and collaboration within the Ethiopian banking industry, the National Bank of Ethiopia (NBE) convened a crucial meeting today with Chief Executive Officers and Board Chairs of various banks. The meeting aimed to communicate the NBE’s strategic priorities outlined in its new 3-year Strategy Plan, focusing on assessing the performance and challenges faced by the sector, particularly in credit and foreign currency allocation.

The agenda of the meeting emphasized the importance of cultivating a unified vision and collaborative approach among all stakeholders. The objective was to align the industry’s efforts towards shared priorities, objectives, and best practices, ensuring the growth and stability of Ethiopia’s banking sector.

Ethiopia’s banking industry has experienced significant growth across various dimensions, including the number of accounts, deposits, credit facilities, and overall accessibility. Recent data revealed a substantial surge in the number of deposit accounts, reaching 129.52 million in June 2023 compared to 98.59 million in the same period last year. This growth reflects the industry’s commitment to expanding its services and reaching a broader customer base.

Moreover, the sector has strategically shifted its focus towards supporting the private sector and extending financial assistance to key segments of the economy. By redirecting resources and expertise, Ethiopian banks aim to bolster the productive sectors of the economy, driving sustainable growth and development.

The NBE has actively encouraged Ethiopian banks to embrace digital financial services, urging them to expand their reach through technology. This push towards digitalization is not only a testament to the country’s commitment to technological advancement but also a vital step in enhancing financial inclusivity. By leveraging digital platforms, banks can effectively reach unserved and underserved areas, bridging the gap and ensuring that financial services are accessible to all Ethiopians.

During the meeting, Ethiopian Digital ID, a key player in the country’s digital landscape, presented a shared vision for a more robust electronic Know Your Customer (eKYC) system. The collaboration between NBE and Ethiopian Digital ID, supported by all banks, is a significant step towards realizing a Digital Economy. This initiative, spearheaded by Fayda, a critical digital infrastructure, is poised to play a pivotal role in advancing financial inclusion and enabling a seamless experience for digital financial services.

With these strategic initiatives in place, Ethiopia’s banking sector is poised for a transformative period, embracing digital innovation, expanding financial services, and ensuring that every citizen has access to the resources they need to thrive in the country’s growing economy.