• International Islamic Bank Group receives license from National Bank of Ethiopia

• Representative office to be established in Addis Ababa

• Approval aligns with Ethiopia’s financial sector liberalization reforms

• Office will focus on market research and business liaison activities

• No direct banking services allowed under representative office license

• Move signals rising foreign investor interest in Ethiopia’s banking sector

why it matters?
Entry of foreign banking groups under representative licenses signals gradual financial sector opening, increasing competition and potential future capital inflows into Ethiopia’s banking industry.

• Agreement focuses on bilateral financial collaboration frameworks

• Discussions include cross-border payment systems and settlement mechanisms

• Cooperation targets improved trade financing and liquidity support

• China remains one of Ethiopia’s largest trade and financing partners

• Huge potential to increase RMB reserves through revenue from Ethiopian Airlines and other sectors, as well as by transitioning key exports toward RMB settlement.

• Engagement aligns with Ethiopia’s efforts to diversify financial partnerships

• No specific monetary value disclosed for the agreement

Why it matters?
Strengthened financial ties with China can support RMB-based trade settlement, improve forex alternatives, and facilitate financing for Ethiopian businesses engaged in import and infrastructure sectors.

• Bank of China and African Development Bank reviewing financing for Bishoftu Airport

• Project estimated at $5–6 billion total investment cost

• Planned capacity: 60–100 million passengers per year (long-term)

• Initial phase targets tens of millions passenger capacity

• Airport to complement Addis Ababa Bole International Airport capacity limits

• Designed to handle large-scale cargo volumes for export logistics

• Financing structure under discussion includes multi-lender participation

Why it matters?

A $5–6B airport with up to 100M passenger capacity would significantly expand Ethiopia’s aviation and cargo logistics capacity, supporting trade and forex growth.

• Afreximbank backs 8 African startups through its innovation program

• Each startup eligible for funding up to $250,000

• Gebeya Inc. selected as Ethiopia’s representative

• Program targets digital innovation, trade facilitation, and industrialization

• Startups selected from multiple African countries after competitive screening

• Funding includes mentorship, market access, and business development support

• Initiative aligns with Afreximbank strategy to support intra-African trade and digital economy

Why it matters?
The funding expands access to capital for African startups and supports Ethiopia’s digital sector through Gebeya’s inclusion, with potential implications for skills, outsourcing, and tech-driven exports.

• International Finance Corporation committed $6.9 billion to Ethiopia over five years

• Investments targeted infrastructure, manufacturing, agribusiness, and financial sectors

• Funding period spans FY2020 to FY2025

• Significant allocations directed to private sector development projects

• IFC financing includes loans, equity investments, and advisory services

• Projects aim to support job creation and export capacity expansion

• Ethiopia among largest IFC investment destinations in Sub-Saharan Africa

why it matters?
Large-scale IFC financing strengthens private sector capacity, improves access to capital, and supports export-oriented industries in Ethiopia.

• All licensed banks authorized to operate in SEZs; prior access limited to selected lenders
• SEZ firms gain access to full banking services: FX, trade finance, loans, and payments
• Policy targets increased export volumes from industrial parks and SEZ-based manufacturers
• Expanded FX access supports import of raw materials and intermediate goods
• Increased lender participation expected to reduce borrowing costs for exporters and traders
• Broader credit access enables financing for logistics assets, including trucks and equipment
• Reform aligns with FX liberalization and rising export growth trends

Why it matters?

Opening SEZ banking expands access to FX and credit, directly supporting import flows and export production. Increased competition among banks improves financing conditions for trade and logistics, enabling truck acquisition and supply chain expansion linked to industrial zones.

• All licensed banks authorized to operate in SEZs; prior access limited to selected lenders
• SEZ firms gain access to full banking services: FX, trade finance, loans, and payments
• Policy targets increased export volumes from industrial parks and SEZ-based manufacturers
• Expanded FX access supports import of raw materials and intermediate goods
• Increased lender participation expected to reduce borrowing costs for exporters and traders
• Broader credit access enables financing for logistics assets, including trucks and equipment
• Reform aligns with FX liberalization and rising export growth trends

Why it matters?

Opening SEZ banking expands access to FX and credit, directly supporting import flows and export production. Increased competition among banks improves financing conditions for trade and logistics, enabling truck acquisition and supply chain expansion linked to industrial zones.

• KCB Group plans to enter Ethiopia’s banking market before end-2026.  
• KCB says Ethiopia fits its regional expansion and non-Kenyan earnings growth strategy.  
• Ethiopia’s new rules allow foreign banks through subsidiaries, branches, or local equity stakes.  
• Foreign ownership in Ethiopian banks is capped at about 40%; total foreign participation at 49%.  
• KCB is discussing entry options with NBE, including a local-bank stake or joint subsidiary.  
• KCB already operates in Rwanda, Uganda, Tanzania, Burundi, South Sudan, and DR Congo.  
• If approved, KCB could become among the first foreign banks in Ethiopia in decades.  

Why it matters?

The planned move signals that Ethiopia’s banking liberalization is advancing from policy to potential market entry. It also indicates rising competition prospects in banking, digital financial services, and cross-border capital flows. 

• Dangote Industries, GCL signed $4.2 billion, 25-year gas supply agreement for Ethiopia fertilizer megaproject.
• Gas to supply 3 million tonnes/year urea plant valued at $2.5 billion, operational target 2029.
• Project structured 60:40 between Dangote Group and Ethiopian Investment Holdings (EIH).
• Gas sourced from Calub field, transported via 108-km pipeline to Gode, Somali Region.
• Plant to fully replace Ethiopia’s current urea imports and supply regional export markets.
• GCL has operated in Ethiopia for over 20 years across oil, gas, and LNG infrastructure projects.
• Project integrates upstream gas, midstream pipeline, downstream fertilizer in single value chain.

why it matters?

A $4.2B, 3-million-tonne project can eliminate Ethiopia’s fertilizer imports, reduce FX demand, and build a domestic energy-to-fertilizer industrial chain by 2029.

• AfrexInsure, Afreximbank’s specialty insurance subsidiary, appointed Lesley Ndlovu as Chief Executive Officer in 2026.  
• Ndlovu succeeds Jonas Mushosho and will lead expansion of specialty insurance for African trade and investment risks.  
• AfrexInsure is a wholly owned Afreximbank subsidiary offering insurance management services for trade-related investments across Africa.  
• The company is incorporated in Mauritius and regulated by the Financial Services Commission with insurance manager and global business licenses.  
• AfrexInsure provides specialty cover including project cargo, construction equipment, energy projects, and alternative risk solutions.  
• The firm says it aims to retain more specialty insurance premiums within Africa and support bankable trade transactions.  

why it matters?

The appointment comes as AfrexInsure expands African-based risk coverage for trade and trade-related investments. That matters for exporters, project sponsors, lenders, and insurers seeking more Africa-focused underwriting capacity. 

• AfrexInsure, Afreximbank’s specialty insurance subsidiary, appointed Lesley Ndlovu as Chief Executive Officer in 2026.  
• Ndlovu succeeds Jonas Mushosho and will lead expansion of specialty insurance for African trade and investment risks.  
• AfrexInsure is a wholly owned Afreximbank subsidiary offering insurance management services for trade-related investments across Africa.  
• The company is incorporated in Mauritius and regulated by the Financial Services Commission with insurance manager and global business licenses.  
• AfrexInsure provides specialty cover including project cargo, construction equipment, energy projects, and alternative risk solutions.  
• The firm says it aims to retain more specialty insurance premiums within Africa and support bankable trade transactions.  

why it matters?

The appointment comes as AfrexInsure expands African-based risk coverage for trade and trade-related investments. That matters for exporters, project sponsors, lenders, and insurers seeking more Africa-focused underwriting capacity. 

• Manufacturers said private banks are restricting loans to industry early in the fiscal year, citing NBE lending limits.  
• NBE raised annual bank credit growth ceilings from 14% to 18%; some banks can expand lending up to 24%.  
• Firms said manufacturing loan rates initially set at 14%–15% were later increased to 23%–24.5%.  
• Manufacturers said financing shortages are limiting raw material purchases and disrupting production planning and cash flow.  
• Industry representatives said a ETB 20 million loan may require collateral worth ETB 50–60 million.  
• The concerns were raised at a March 12, 2026 public-private forum on finance and workspace constraints.  
• The Chamber signed an MoU with EDI Ethiopia, Addis Ababa Trade Goods Enterprise, and Awash Bank to support SMEs.  

Why it matters?

The report points to tighter bank credit, higher borrowing costs, and stricter collateral demands for Ethiopian manufacturers. These constraints can affect working capital access, raw material purchases, and SME expansion. 

• Overnight interbank trading volume reached Birr 126.3 billion in February 2026.

• Volume increased from Birr 38.5 billion in January 2026.

• Month-on-month growth exceeded 200 percent.

• Average overnight rate rose to 15.9 percent.

• Rate increased from 14.2 percent in January.

• Transactions concentrated in one-day interbank placements.

Why it matters?
Sharp volume and rate increases indicate tighter liquidity conditions and higher short-term funding costs.