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South African Bank to Open Representative Office in Ethiopia

The South African Standard Bank disclosed it is going to open a representative office in Ethiopia in two months time. This is despite the Ethiopian economy is closed for foreigners when it comes to commercial banking services.

As the Ethiopian legal regime prohibits foreigners to render commercial banking services, such as taking deposits or lending, the South African Bank will not be engaged in such operations.

Taitu Wondwosen, a senior vice president at Standard Bank who will become the representative, explained, “"We are looking to open up a representative office, hopefully by the end of March this year". "We go where our clients are. More and more of our clients are starting to ask about Ethiopia."

She noted clients are showing interest to engage in Ethiopia’s manufacturing sector, such as textile industry, construction and infrastructure work.

Reuters regarded the development as one that will provide foothold for Standard Bank to build relationships with local businesses and develop market intelligence to help advice clients keen to invest in Ethiopia.

Currently there are other institutions that have representative office operating in the East African Country including Germany's Commerzbank, pan African lender Ecobank , Export-Import Bank of India, National Bank of Egypt and Bank of Africa.

Taitu posed Standard Bank is interested to offer a broader range of services. "In the short term, we are under no illusion that it is going to remain closed," she furthered.

Source: Reuters