Two foreign banks have applied to establish fully foreign-owned operations in Ethiopia, according to National Bank of Ethiopia officials.
Greenfield investment means building new banking operations rather than buying shares in existing Ethiopian banks.
Birr 5 billion is the minimum capital for foreign subsidiaries or branches, payable in acceptable foreign currency, Capital reports.
Other international banks are conducting due diligence on potential equity partnerships with existing Ethiopian banks.
Applications remain under review: The applicants’ names and dates for licensing or starting operations have not been disclosed.
Why it matters
New entrants could increase competition, pushing Ethiopian banks to improve service quality, technology and efficiency.
Foreign capital could expand financing capacity, depending on entrants’ lending strategies and customer focus.
Importers and exporters could gain additional trade-finance options and international banking connections after operational launch.
What to watch
NBE licensing decisions, applicant identities and confirmed opening dates.
Entrants’ lending priorities, fees and trade-finance products.