Turkey proposes first foreign owned bank in Ethiopia

Ziraat Bank, a Turkish agricultural bank, tabled its proposal to the Ethiopian government to open its branch in Ethiopia, Capital learnt. The bank has sent its proposal for the government to operate in the country, but the nation’s law and the ruling party’s policy strictly prohibits operation of any foreign financial institutions in Ethiopia.
A delegation from the bank, which is known as one of the top two banks in Turkey, is expected to visit relevant offices in the near future to talk about forming the bank in Ethiopia.
Turkey is one of the three major FDI promoters in the country along with China and India. Within almost a decade Turkish investment in Ethiopia has reached USD three billion, which is expected become even higher this year. Representatives from several companies accompanied the Turkish Economic Minister, Nihat Zeybekci, in December. During this visit the minister mentioned opening a bank for top government officials.
Osman R. Yavuzalp, Turkish Ambassador to Ethiopia, confirmed that the bank submitted a proposal to the government.
He told Capital that officials of the bank will come to Ethiopia to talk about the formation of Ziraat, which is state owned, here.
“We will negotiate this from our side but it will depend on the talks with Ethiopian officials,” he said. “Ethiopia has the final say because the establishment will be based on the rules and regulations of the country,”Osman explained.
After Christmas, a Turkish delegation will come here to talk about technical issues first and details will follow.