cbe

awash

abyssinia

USD
53.8978
54.9758
,
GBP
63.5273
64.7978
,
EUR
58.5007
59.6707
,
AED
13.2815
13.5471
,
NOK
4.694
4.7879
,
SAR
12.9896
13.2494
,
SEK
4.6921
4.7879
,
CAD
35.8711
36.5885

abay

USD
53.9027
54.9808
,
EUR
58.5545
59.7256
,
GBP
66.5267
67.8572
,
CHF
58.8393
60.0161
,
AUD
36.0879
36.8097
,
AED
14.6766
14.9701
,
CNY
7.8307
7.9873
,
DKK
7.8617
8.0189
,
DJF
0.2995
0.3055
,
INR
0.6557
0.6688
,
JPY
0.4061
0.4142
,
KES
0.4071
0.4152
,
NOK
5.1657
5.269
,
SAR
14.3587
14.6459
,
ZAR
2.9836
3.0433
,
SEK
5.1818
5.2854
,
SDR
72.483
73.9327

zemen

CAD
39.7533
40.5484
,
EUR
57.8729
59.0304
,
GBP
65.2913
66.5971
,
SEK
5.081
5.1826
,
USD
53.408
54.4762

buna

nib

berhan

wegagen

USD
53.8009
54.8769
,
GBP
61.5685
62.7999
,
EURO
56.9859
58.1256
,
CAD
35.1957
35.8996
,
AUD
32.0768
32.7183
,
CHF
55.9713
57.0907
,
SEK
4.676
4.7695
,
NOK
4.834
4.9307
,
DKK
7.1135
7.2558
,
DJF
0.2976
0.3035
,
INR
0.6534
0.6665
,
KSH
0.4289
0.4375
,
JPY
0.3771
0.3846
,
SAR
12.909
13.1672
,
AED
13.1884
13.4522
,
ZAR
3.1723
3.2357
,
CNY
7.1867
7.3304
,
KWD
167.5769
170.9284

dgb

USD
53.9027
54.9808
,
GBP
66.5267
67.8572
,
EUR
58.5545
59.7256
,
CHF
58.8393
60.0161
,
CAD
39.7718
40.5672
,
AUD
36.0879
36.8097
,
SEK
5.1818
5.2854
,
NOK
5.1657
5.269
,
DKK
7.8617
8.0189
,
DJF
0.2995
0.3055
,
INR
0.6557
0.6688
,
KSH
0.4071
0.4152
,
JPY
0.4061
0.4142
,
SAR
14.3587
14.6459
,
AED
14.6766
14.9701
,
ZAR
2.9836
3.0433
,
CNY
7.8307
7.9873
,
KWD
175.6959
179.2098

enat

addis

GBP
61.7297
62.9643
,
USD
53.7176
54.792

nbe

KWD
126.8085
129.34467
,
CNH
5.6258
5.738316
,
ZAR
2.6751
2.728602
,
AED
9.9063
10.104426
,
SDR
57.7908
58.946616
,
EUR
48.4016
49.369632
,
CAD
28.7765
29.35203
,
AUD
28.3265
28.89303
,
JPY
0.3389
0.345678
,
SAR
9.7001
9.894102
,
INR
0.5525
0.56355
,
DJF
0.2234
0.227868
,
KES
0.3664
0.373728
,
DKK
5.8896
6.007392
,
NOK
4.2714
4.356828
,
SEK
4.3114
4.397628
,
CHF
41.5822
42.413844
,
GBP
53.539
54.60978

dashen

USD
53.9027
54.9808
,
GBP
63.533
64.8037
,
CHF
56.1915
57.3153
,
SEK
4.6895
4.7833
,
NOK
4.675
4.7685
,
DKK
7.1148
7.2571
,
JPY
0.3675
0.3749
,
CAD
35.9935
36.7134
,
SAR
12.9946
13.2545
,
AED
13.2823
13.5479
,
EUR
58.5545
59.7256
,
DJF
,
INR
,
KES
,
AUD
,
ZAR
,
CNY
,
AED

oromia

USD
53.3285
54.3951
,
EUR
56.7522
57.8872
,
GBP
64.2235
65.508
,
SAR
14.185
14.4687
,
CHF
57.398
58.546
,
AED
14.5198
14.8102

lion

coop

USD
53.8887
54.9665
,
GBP
66.3532
67.6803
,
EUR
58.3453
59.5122
,
SAR
14.3466
14.6335
,
AED
14.6716
14.965

Anticipated Foreign Bank Entry in Ethiopia Authorized 2023

Addis Ababa, Ethiopia

Foreign Bank Entry in Ethiopia

Anticipated Foreign Bank Entry in Ethiopia Authorized 2023.

Foreign bank entry into Ethiopia, long anticipated by some and feared by others, was legalized this year. The decision to liberalize the banking sector was made by the Ethiopian Council of Ministers during its 13th regular meeting held on September 03, 2022. This verdict is one item in a string of liberalization the country has been enforcing since the appointment of PM Abiy Ahmed in 2018.

While this novel legislation allows interested foreign investors to engage in banking services in the country, its actual implementation will necessitate the passage of new laws. Many experts speculate that this will take a couple of years, in which time local banks can better ready themselves.

In spite of their capacity and willingness to enter the market, international competitors have been barred from doing so for fear of creating unrivaled competition. It is true, and likely, that foreign banks will have the upper hand due to their superior technology, experience, and capital.

With a combined shareholder number likely does not exceed one million and the protection afforded to them by the country’s policy, the stakeholders of domestic private banks have been earning a return on equity of between 20 to 50% per annum, far more than the 10% global average. Following the entry of foreign banks, local financial institutions are sure to see a drop in revenue and profit as they lose the closed economy privilege afforded to them before.

The Current Banks, without the Foreign Bank Entry in Ethiopia

Ethiopia currently has 30 local banks, a significant increase from the 18 that were in operation last year. Even so, H.E Yinager Dessie (Ph.D.), Governor of the National Bank of Ethiopia (NBE), has earlier noted that the banks’ capital fulfillment and strength, rather than their large number, is the pressing issue at hand. In accordance, NBE has increased its efforts to force mergers and acquisitions on local banks in order to ensure their survival in the face of foreign competition, and provide abundance bank vacancies for employees.

The Current Number of Banks in Ethiopia

Although there are many fears regarding this move, the Council of Ministers put forth several rationales for their decision to let foreign bank entry in Ethiopia local market. Among them are:

  • An Influx of new technology, knowledge, and skills into the sector
  • Provision of adequate financial services and increased foreign exchange inflows
  • Creation of job opportunities for the many unemployed and underemployed youth
  • Increasing the country’s financial sector’s global competitiveness, among other things.

A point that confused many after the legislation was announced was in what particular way foreign banks could invest in Ethiopia. Well, according to the National Bank of Ethiopia, foreign banks can come to Ethiopia in four ways.

Foreign Bank Entry in Ethiopia 4 Ways:

  • Opening a fully owned subsidiary
  • In a joint venture with one of the local banks
  • Opening a branch (es); or
  • Opening commercial representative Office

Prior to this regulation, nine foreign banks have been operating in Ethiopia since 2015, as reported by Business Info Ethiopia.

The movement was initiated by the state-owned Turkish bank Ziraat, which was vying to be the first foreign institution to obtain a banking license in Ethiopia that year. The European Investment Bank, Standard Bank, Deutsche Bank, Commerz Bank, KCB Bank, Bank of Africa, Export-Import Bank of India, and Equity Bank soon followed in the same footsteps.

Despite Ethiopia’s prohibition on full banking operations by foreign banks, such as direct lending and deposit-taking, the institutes were permitted to maintain a representative office in the country.

According to Afro Tender, this means that banks located in the country could not generate deposits or lend directly to Ethiopian companies and households, but they could conduct research and credit assessments to allow lending from their respective countries’ headquarters.

While this arrangement has allowed these banks to study the Ethiopian market, the time to use the data they’ve accumulated in nearly a decade has finally come with the liberal policy adopted this year.https://banksethiopia.com/category/uncategorized/. For more news about Banks in Ethiopia, you can find right here.