Number of deposit accounts reaches 129.52mln across all banks in Ethiopia

Addis Ababa, October 31, 2023 (FBC) – The number of deposit accounts across all banks has climbed to 129.52 million in Ethiopia in 2023 owing to the notable growth in the banking sector, according to National Bank of Ethiopia (NBE).

This outcome was revealed during a meeting between NBE and Bank CEOs and Board chairs today to communicate the NBE’s priorities outlined in its new 3-year Strategy Plan.

The agenda included assessing the performance and challenges of the banking industry, particularly in credit and foreign currency allocation, NBE mentioned. It is stated that the gathering aims to foster a unified vision and collaborative approach by all stakeholders towards shared priorities, objectives, and practices.

The banking sector in Ethiopia has shown notable growth across multiple dimensions, including in accounts, deposits, credit, and accessibility. The number of deposit accounts surged to 129.52 million in June 2023 compared to 98.59 million in June 2022, the National Bank’s data indicated.

Moreover, the sector is redirecting its focus towards the private sector and to extending financial support to the economy’s productive segments, it was pointed out.

NBE said that it has been encouraging Ethiopian banks to expand their reach through digital financial services and to extend their lending services to untapped segments of the economy. This encouragement is aimed at reaching unserved and underserved areas to enhance financial inclusivity in Ethiopia.

Ethiopian Digital ID presented a shared vision towards a better eKYC with NBE and all banks. Fayda is a critical digital infrastructure to realize the Digital Economy and it will play a key role to advance financial inclusion and to further enable digital financial services.