Ethiopia's Financial Sector Healthy, Growing: PM Abiy 

Addis Ababa, July4/2024(ENA)  Prime Minister Abiy Ahmed said Ethiopia’s financial sector has been showing encouraging stability with a healthy growth trajectory, urging domestic banks to build their competitiveness.  

The premier made the remark responding to queries and comments put to him by members of the House of Peoples Representatives today. 

In his response to questions regarding economic conditions of the country, the premier said the measures being taken by the government to curb the macroeconomic challenges of the country have been bearing fruits.   

One of the positive achievements is the stability being observed in the finance sector as per international indicators, Abiy said. 

According to the premier, Ethiopia's bad debts account for 4.5 percent against the global rate, which stands at 5 percent.
 

He also highlighted the growth being witnessed in the banking sector stating that the number of banks operating across Ethiopia has reached 32 from the previous 17. Their profit margin has also shown increment by more than 24 percent. 

The number of branches across the country has also exceeded 12,800 from 5,400, the premier noted, adding that bank depositors have increased to more than 100 million from 38 million in the previous years, showing the growing interests of individuals and institutions to use services from  banking industry.  

According to Abiy, the number of people who use mobile money transfer has reached 47 million. 

Noting the ongoing moves taken by government to engage foreign companies in the banking sector, the premier urged domestic banks to make the necessary preparations in terms of human resources, technologies and accessibility with a view to be competent with the new foreign entrants.   

The entrance of foreign banks to Ethiopia is instrumental to help the country modernize working system of the sector and boost competitiveness, he added.