Standard Bank has recorded a major milestone in Ethiopia after its Representative Office in the country became the first foreign financial institution to be re-licensed under Ethiopia’s newly revised Banking Business Proclamation. The development comes at a time when the Ethiopian government is pushing ahead with wide-ranging financial sector reforms aimed at opening up the economy, attracting foreign investment, and strengthening the country’s banking system.
The re-licensing is seen by analysts as an important signal to global investors that Ethiopia is serious about reforming its financial services industry and creating room for international banks to play a bigger role in its economic growth. Ethiopia, which has one of Africa’s largest populations and fastest-growing economies, has traditionally maintained strict controls over its banking sector, limiting foreign participation for decades.
Standard Bank’s Representative Office in Ethiopia was first launched in 2015 as part of the bank’s broader Africa strategy. Since then, it has served as a key link between Ethiopian businesses and regional as well as international markets. With the new licence under the revised Banking Business Proclamation, the bank is now better positioned to deepen its engagement with clients and partners operating in the East African country.
Speaking on the development, Taitu Wondwosen, Head of Ethiopia at Standard Bank Corporate and Investment Banking, said the re-licensing marks a new phase for the bank’s activities in the country. According to her, the Representative Office has played an important role over the years in helping Ethiopian companies access cross-border trade opportunities and international financing solutions. She explained that the renewed licence will allow Standard Bank to scale up partnerships that support key sectors such as infrastructure development, trade finance, and investment flows.
Wondwosen noted that Ethiopia’s infrastructure needs remain significant, spanning transport, energy, logistics, and industrial development. She said the bank is keen to work with both public and private sector players to unlock funding opportunities that can drive sustainable development. She also stressed that improved access to regional and global capital markets will be critical as Ethiopia continues its economic transformation journey.
The re-licensing of Standard Bank’s office is closely linked to Ethiopia’s broader economic liberalisation agenda, which has gathered momentum in recent years. The revised Banking Business Proclamation expands provisions for foreign investment in the financial sector and is designed to encourage greater international participation while strengthening regulatory oversight. Industry watchers believe this move will help improve efficiency, deepen competition, and introduce global best practices into the Ethiopian banking system.
For Standard Bank, Africa’s largest bank by assets, the development aligns with its long-standing strategy of supporting intra-African trade and investment. The bank operates in several African countries and has a strong focus on facilitating cross-border transactions, especially in emerging markets with high growth potential. Its presence in Ethiopia is seen as strategic, given the country’s role as a regional hub in the Horn of Africa.
Economic analysts say the re-licensing also sends a positive message to other international banks and financial institutions that may be considering entry into Ethiopia’s market. By granting approval to Standard Bank under the new law, Ethiopian authorities are demonstrating a willingness to engage with reputable global players as part of efforts to modernise the sector and attract long-term capital.
Beyond banking, Ethiopia’s reforms are expected to have a ripple effect across other sectors of the economy, including manufacturing, agriculture, telecommunications, and infrastructure. Improved access to international banking services could make it easier for businesses to finance projects, manage foreign exchange risks, and participate more actively in global trade.
Standard Bank said the re-licensing reinforces its long-term commitment to Ethiopia and its clients in the country. The bank believes that sustained engagement, strong partnerships, and alignment with national development priorities will be essential as Ethiopia continues to open up its economy. With the new regulatory framework in place, the bank expects to play a bigger role in supporting trade flows, investment deals, and economic growth in the years ahead.
As Ethiopia continues to refine its financial sector policies, stakeholders will be watching closely to see how increased foreign banking participation shapes the market. For now, Standard Bank’s re-licensing stands out as a landmark step in the country’s ongoing efforts to build a more open, resilient, and globally connected financial system.
