Kenya’s Equity Bank is preparing to expand into Ethiopia’s financial market after the country’s government opened the sector to foreign investors.
Equity Bank Chief Executive, Dr. James Mwangi, met officials from the Ethiopian Investment Commission (EIC) in Addis Ababa on Friday, September 12, to discuss conditions for the bank’s entry, signalling a major regional push.
EIC Commissioner Dr. Zeleke Temesgen welcomed the move, describing Ethiopia as “a preferred country for companies wishing to engage in the financial sector.” He assured Equity of government cooperation, noting that the recent reforms are designed to attract experienced international lenders.
“The commission is ready to provide the necessary cooperation and support for the bank’s investment in Ethiopia,” Dr. Temesgen said.
Equity eyes a huge population market
Dr. Mwangi highlighted that Equity has had plans to invest in Ethiopia for years, and now it has even opened a representative office in Ethiopia in 2019 and sees a favourable opening.
“The Ethiopian government’s decision to open up the financial sector to foreign investors created a favourable opportunity for us,” Dr. Mwangi stated.
Equity Bank, which already operates in Kenya, the Democratic Republic of Congo, and other African markets, views Ethiopia’s population of over 100 million as a gateway for wider regional expansion.
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Ethiopia’s financial sector liberalisation stems from the Banking Business Proclamation No. 1360/2025 and subsequent directives that allowed foreign banks to establish subsidiaries, open branches, or acquire stakes in domestic institutions.
The reforms are part of a wider economic liberalisation agenda, encompassing telecommunications, aviation, and logistics.
Equity Bank operates across Kenya, Uganda, Tanzania, South Sudan, Rwanda, and the Democratic Republic of Congo, with interests spanning retail, corporate, and digital banking.
Equity Group expansion into the UAE
Earlier in the year, Equity Group shareholders approved the opening of a Representative Office in the United Arab Emirates (UAE), making Equity the first Kenyan bank to set up operations in the Middle East.
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The group’s board on Wednesday, June 25, also approved all necessary actions to establish the office in the UAE, including executing and filing required documents and agreements, paying associated fees and expenses, and setting up the necessary structures, commercial arrangements, and other related measures to support the office’s operations.
According to the bank, the Dubai hub will facilitate business, trade, and investment opportunities between East and Central Africa, the UAE, and the wider Middle East, India, and the Central and South Asia regions.
The representative office will also enable Equity Bank to fund Kenyan and East African firms and investors with business interests in the Emirates, and even for foreign traders, expanding its market base and customer portfolio.
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