Hijra Bank Attracts Foreign Investor Interest Following Banking Sector Liberalisation

Addis Ababa — Hijra Bank S.C. reports strong interest from foreign investors seeking equity stakes ranging from 5 percent to as much as 50 percent, as Ethiopia opens its banking sector to foreign participation.

According to the bank, potential investors include financial institutions and business groups from Dubai, Turkey, Saudi Arabia, Djibouti, and Kenya. The interest comes amid broader reforms aimed at strengthening domestic banks through fresh capital, technical expertise, and global market exposure.

Hijra Bank Chairperson Abdulselam Kemal told shareholders that discussions on foreign investment have already taken place at the board level, with a decision to prioritize existing shareholders. Speaking during the bank’s fifth annual general meeting at Millennium Hall, he said foreign interest spans multiple sectors and is not limited to banks alone.

While the bank has not disclosed the identities of prospective investors or timelines for potential transactions, it confirmed that efforts are underway to meet the National Bank of Ethiopia’s minimum paid-up capital requirements.

Hijra Bank posted strong financial results for the fiscal year ended June, reporting revenue of 1.766 billion birr, a 150 percent increase year-on-year. Pre-tax profit reached 721 million birr, allowing the bank to declare earnings per share for the first time since its establishment. Shareholder participation increased, leading to a 29.4 percent rise in paid-up capital, which reached 3.5 billion birr.

To bolster capital, the bank’s largest shareholder acquired 500 million birr worth of shares, while the Oromia Majlis purchased shares valued at 20 million birr.

The growing foreign interest highlights how Ethiopia’s banking sector liberalisation is beginning to translate into tangible investor engagement, particularly for fast-growing domestic banks.

Source Birr metrics