open sesame

Ethiopia’s banks pushed to bulk up before market opens

By Hawi Dadhi

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Posted on June 22, 2022 10:13

The Ethiopian Central Bank warns it will continue to push up minimum capital requirements. The goal: force local banks to be competitive, as the gradual opening up of the sector continues. With Ethiopia’s finance sector posting the best returns on equity in the region, investors are watching and waiting.

When the state-owned Commercial Bank of Ethiopia, which has over $16bn in assets, inaugurated its new high-rise HQ in February this year, Prime Minister Abiy warned the financial sector would not remain closed for long.

“The protection provided for the past 30 years will not be any longer,” said the prime minister addressing local banks “As we will open up to the world, you should ready yourselves.”

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