Private banks in Ethiopia are praising the government's macroeconomic reform agenda, describing it as a turning point in modernizing the financial sector, improving efficiency, and driving inclusive economic growth.
Launched a year ago, the reform aims to ensure sustainable development by addressing long-standing challenges such as inflation, foreign exchange shortages, limited financial inclusion, and outdated policy frameworks. It has also created new confidence among international financial actors, encouraging foreign banks to enter the Ethiopian market.
Speaking at a high-level public-private finance forum held Tuesday, organized by the Ministry of Finance (MoF), the National Bank of Ethiopia (NBE), and the Ministry of Planning and Development (MoPD), executives from leading private banks highlighted the tangible benefits they have experienced over the past year.
Dashen Bank CEO Asefaw Alemu noted that the reform agenda has helped set a clear financial policy direction, closing previous sectoral gaps and fostering transparency. "It has created an enabling environment for increasing foreign currency inflows, expanding digital services, developing human capital, and boosting loan volumes through strategic guidance," he said. Dashen Bank, he added, has seen significant gains as a result of these changes.
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Siinqee Bank CEO Neway Megersa echoed the sentiment, noting that the reform has enhanced the private sector's productivity, customer base, and overall performance. "The reform is building a stronger connection between finance and the broader economy," he said. He highlighted that in just one year, Siinqee Bank disbursed 25 billion Birr in loans to over 331,000 micro-level customers-- an unprecedented achievement for the bank.
Neway also reported that over 345,000 customers have accessed services via Telebirr, while the bank mobilized 300 billion Birr in deposits in the past year alone. He emphasized that financial inclusion is rising, with many citizens now using banking services for the first time.
While the reforms have brought notable improvements, both bank leaders and government officials underscored the need to further extend financial services to rural communities, where the majority of Ethiopians reside. They stressed that tailored, policy-driven rural finance initiatives would be crucial for the broader success of the reform.
Finance Minister Ahmed Shide emphasized that the financial sector remains the backbone of the economy. "The reform is enabling better access to foreign currency and strengthening credit services. It is also encouraging greater private sector participation," he stated.
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NBE Governor Mamo Mihretu added that private banks are now adopting modern systems and gaining improved access to foreign currency thanks to the reform. He urged collaboration between banks and the government to tackle challenges like the parallel market and support sustainable financial development.
Mamo also acknowledged current limitations in the reform's reach, particularly in agriculture, manufacturing, and small enterprises. To address this, he said, future efforts will focus on expanding digital finance services, offering collateral-free loans, and better supporting underserved sectors.
"These reforms are driving historic changes in how Ethiopia manages monetary policy, exchange rates, deficit financing, and the broader operation of the financial sector," Mamo concluded.
