Equity Bank Bids for Ethiopia’s Banking Sector – The Kenyan Wall Street

Equity Bank Group has taken a major step toward expanding into Ethiopia after its chief executive Dr. James Mwangi held talks with Ethiopian Investment Commission (EIC) Commissioner Dr. Zeleke Temesgen on Friday.

• Dr. Temesgen said the commission was ready to provide the necessary cooperation and support to facilitate the bank’s entry into the country’s financial sector.
• Dr. Mwangi said the bank had long planned to enter Ethiopia and the government’s decision to open the financial sector to foreign investors created a favourable opportunity.
• Equity, headquartered in Nairobi, is among the largest banks in East and Central Africa by customer base and assets, with operations in Kenya, the Democratic Republic of Congo, Uganda, Rwanda, South Sudan, and Tanzania.

With over 120 million people and one of the lowest banking penetration rates in Africa, Ethiopia has become a key frontier market for East African lenders seeking growth beyond their home markets.

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KCB Also Pursuing Entry as Ethiopia Opens Financial Sector

Equity’s move comes as rival KCB Group also positions to enter Ethiopia’s banking sector following recent regulatory changes.

• KCB has held discussions with Ethiopian authorities and is exploring acquiring up to a 40 percent stake in a local bank, according to people familiar with the talks.
• Simba’s Chief Executive Paul Russo has said the lender is in negotiations with the National Bank of Ethiopia (NBE) and is seeking a suitable domestic partner.
• KCB has operated a representative office in Addis Ababa since 2015 and is now preparing a formal application for a licence under Ethiopia’s new foreign entry framework.

Ethiopia passed the Banking Business Proclamation No. 1360/2024 in December, allowing foreign banks to set up subsidiaries, branches, or representative offices, and to acquire equity stakes in local lenders. In June 2025, the NBE issued a directive enabling foreign banks to start submitting applications.