Ethiopia: Kenyan Bank Looks to Ethiopia

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One of the key players of Kenya’s financial market, Co-Operative Bank of Kenya (CBA), says it is ready to test the market in Ethiopia with some sort of joint venture with Ethiopian banks. This is despite the fact that Ethiopia’s financial market is closed to foreigners.

In its statement to media, the Bank, which also envisions expanding to Tanzania and Uganda, has estimated to invest about 20 million dollars in its expansion plan that constitutes its Ethiopian endeavor.

The Bank’s CEO, Gideon Muriuki, said that joint venture is the preferred option the Bank sees in its expansion to Ethiopia.

Ethiopia and Kenya have a special agreement that provides preferential treatment to investors in each other’s territories. The agreement, however, has been pending its ratification at the Ethiopian Parliament.

With the recent visit to Ethiopia of a large Kenyan business delegation to Ethiopia, led by President Uhuru Kenyatta, however, the ratification gained speed and was eventually concluded with the overwhelming vote it gained at the legislative house. It is this special agreement that CBA is hoping to fetch its entrance from Ethiopian authorities.

CBA is the second Kenyan bank, next to Equity Bank, to express interest to get engaged in Ethiopia. .

Source: Addis Fortune