Tsedey Bank, one of Ethiopia’s youngest commercial banks, has officially appointed Yohannes Ayalew (PhD) as its new President, effective February 9, 2026, pending approval from the National Bank of Ethiopia (NBE).
The appointment comes at a critical juncture as the bank grapples with a staggering 2.13 billion Birr net loss recorded in the 2024/25 fiscal year. Yohannes, a seasoned economist with extensive experience in the Ethiopian financial sector, succeeds the bank’s founding CEO, Mekonnen Yelewumwossen, who resigned in January 2026.
Following Mekonnen’s departure, the bank has been under the interim leadership of Yeshimebet Teffera. However, the Board of Directors—chaired by Derese Hailu, Vice President of the Amhara Region—opted to appoint a permanent leader with the expertise to steer the institution through its current financial turbulence.
Industry observers describe Yohannes’s appointment as a strategic “rescue mission,” citing his proven record of revitalizing struggling financial institutions and guiding them toward stability and growth.
Dr. Yohannes most recently served as CEO of Amhara Bank, where he earned recognition for reversing the institution’s early losses and leading it to achieve a net profit of approximately 655 million Birr. Following his departure, Amhara Bank is reportedly seeking a successor capable of sustaining the growth trajectory he established.
Before joining the private banking sector, Yohannes left a lasting impact at the Development Bank of Ethiopia (DBE). When he assumed leadership, the DBE was weighed down by non-performing loans and faced a severe liquidity crisis. Through comprehensive structural reforms and revised lending strategies, he successfully transformed the DBE into one of Ethiopia’s most profitable and reliable state-owned financial institutions.
Yohannes’s foundation in monetary policy and regulation stems from his nine-year tenure at the National Bank of Ethiopia, where he served as Vice Governor and Chief Economist. His deep understanding of the country’s financial regulatory framework and macroeconomic environment is expected to be a key advantage in aligning Tsedey Bank with the NBE’s stringent directives.
Analysts attribute Tsedey Bank’s loss largely to the bank’s transition from a micro-lending model to full-scale commercial banking, compounded by regional instability and tight monetary policy.
