20+ New Banks in Ethiopia are Under Formation
Ethiopia, one of the fastest-growing economies in Africa has 16 privately owned and 1 government-owned bank. For the just-ended fiscal year, the total new deposits mobilized by private banks (Birr 89 billion) exceeded that of CBE (Birr 54 billion), while private banks’ collective profits (Birr 17 billion) have now surpassed—for the first time—that of the state bank (Birr 14 billion), According to the new research paper released by a private equity firm, Cephues Invest Advisory.
New Banks in Ethiopia Under Formation
The country opened its doors to more new opening private banks after the political reform that happened in the country in 2018.
There are more than 20+ new banks in Ethiopia under formation. The National Bank of Ethiopia’s rule states that banks need a minimum capital of 500 million birr. Some of these banks have completed the minimum capital. These are some of the new banks under formation:
- Ahadu Bank
- Akufada Bank
- Amhara Bank
- Damota Bank
- Gadda Bank
- Geez Bank
- Goh Betoch Bank
- Hijra Bank
- Hossana Bank
- Jano Bank
- Kush Bank
- Selam Bank
- Sheger Bank
- Tsehay Bank
- YeEthiopia Diaspora Bank
- ZemZam Bank
Ahadu, One of The New Banks in Ethiopia
Ahadu Bank, has managed to perform it’s first formation assembly in Ghion Hotel on January 2, 2021. The bank managed to sell 760 million birr worth of shares and managed to collect 540 million birr in paid up capital out of 10,500 shareholders.
ZamZam, Hijra, Amhara, and Goh Betoch Bank completed selling of shares, and out of which ZamZam and Hijra have conducted signatory meeting – while the remaining two are in the process of organizing a signatory meeting.
For more in-depth guide, see our end-to-end article on upcoming and latest banks in ethiopia.