Ethiopian Bank sectors are preparing for global competition

Ethiopia-(Berberanews)-#Ethiopia plans to open its banking sector to global competition as soon as parliament implements rules allowing it, Prime Minister Abiy Ahmed said, highlighting one of the last major sectors of the economy to be liberalized.

A consortium consisting of Kenya’s Safaricom (SCOM.NR), South Africa’s Vodacom, the United Kingdom’s Vodafone, and Japan’s Sumitomo is establishing a network after winning an operating license last year.

According to Abiy, the fact that #Ethiopia has closed its doors to foreign banks has helped the sector until now. “However, banks must ready themselves with contemporary methods and information technology after that,” he added.

“The administration is currently preparing… a policy adjustment in this regard. We will (implement) it once the preconditions are met and the banks are ready.”

According to the central bank, Ethiopia has 18 commercial lenders, two of which are state-owned.

Abiy promised to restructure areas like telecoms and financial services when he took government in 2018.