In a landmark move signaling a new era for Ethiopia’s financial sector, the National Bank of Ethiopia (NBE) has officially opened the country’s banking industry to foreign participation.
The central bank announced today the issuance of Directive No. SBB/94/2025, titled “Requirements for Licensing and Renewal of Banking Business and Representative Office Directive.” The directive provides the legal and regulatory framework that allows foreign banks and strategic investors to operate in Ethiopia for the first time.
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This directive follows the earlier enactment of the Banking Business Proclamation and reflects a year-long consultation process with stakeholders. It outlines multiple entry options for foreign players — including establishing subsidiaries, branches, or representative offices — and grants the NBE new authority to license and supervise these representative offices.
The NBE emphasized that this step is expected to boost capital inflows, enhance competition, improve financial service delivery, and promote efficiency and inclusivity within the banking ecosystem.
Effective immediately, foreign banks and investors are invited to submit applications to operate in Ethiopia.
