Equity Group Holdings Plc has announced a strategic move to expand into Africa with a bold move to widen the bank’s operations by entering the Ethiopian market. This move was signaled on Friday when Dr. Mwangi held talks with Dr. Zeleke Temesgen, an Ethiopian Investment Commissioner.
According to Dr. Mwangi, Equity Bank Group has long aspired to extend its operations into Ethiopia. The bank first attempted entry in 2019, marking the initial step of its phase two expansion strategy, although operations were delayed.
Historically, Ethiopia’s financial sector had been closed to foreign lenders. However, the government’s recent decision to open up the sector for investment opportunities has begun to attract investors beyond its borders. Equity’s entry into Ethiopia aligns with the bank’s major objective of becoming a pan-African lender. Currently, Equity operates in the Democratic Republic of Congo, Uganda, Tanzania, Rwanda, and South Sudan, with its headquarters in Kenya.
Following the meeting on Friday, Dr. Temesgen noted that the commission was well-prepared to provide the necessary cooperation and support to facilitate Equity Bank’s smooth entry into Ethiopia’s financial sector. This development underscores Ethiopia’s emergence as a key frontier market for East African banks, given that it has one of the lowest banking penetration rates in Africa.
Equity Bank’s Move Follows KCB’s Decision on Ethiopia.
Meanwhile, Kenya Commercial Bank (KCB) has also positioned itself to access the Ethiopian financial market. The bank has maintained a representative office in Addis Ababa since 2015 and is currently in negotiations with the National Bank of Ethiopia (NBE) to secure a favorable local partner. This follows NBE’s directive in June 2025, allowing foreign banks to submit applications. KCB Group already has a strong footprint across Africa, with operations in Kenya, Tanzania, Uganda, South Sudan, Burundi, Rwanda, and the Democratic Republic of Congo.
These moves by regional lenders come after Ethiopia passed Banking Business Proclamation No. 1360/2024 in December. The proclamation permits foreign banks to establish subsidiary branches and acquire equity stakes in local lenders, opening the door for broader participation in the country’s financial sector.
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