By Semafor Africa
Photos: YouTube Screenshots
Kenya’s two largest banks are accelerating plans to launch in Ethiopia in their bid to capitalize on Addis Ababa’s economic liberalization, even as a new World Bank report highlighted major challenges faced by telecoms giant Safaricom in its expansion in the country.
Kenyan banks are betting on rising demand for financial services among young people in Ethiopia, Africa’s second-most populous nation, where Prime Minister Abiy Ahmed has opened up key sectors including finance and telecommunications.
In August, Kenya Commercial Bank confirmed plans to acquire a 40% stake in an undisclosed Ethiopian lender. And last month Equity Bank Kenya pushed forward on its plans to enter Ethiopia by holding talks with the Ethiopian Investment Commission.
Their moves come as the World Bank’s report, published last week, said that state-owned Ethio Telecom is afforded major advantages by the Ethiopian government at the expense of Kenya’s Safaricom, including regulatory decisions on pricing. The lender said the operating conditions warranted “further investigation by authorities.”
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