Kenya’s Equity Group is closely watching Ethiopia’s planned opening of its banking sector to foreign lenders, with the group positioning itself to enter the market once full operations become possible.

The group’s Chief Executive Officer, James Mwangi, said Equity has maintained a representative office in Ethiopia for the past seven years, reflecting its readiness to operate in the country when regulatory conditions allow.

Equity is expected to pursue an acquisition-based entry strategy in Ethiopia rather than establishing a new operation from the ground up. The group has previously used acquisitions to expand in other African markets, including the Democratic Republic of Congo, where it has grown to become the second-largest lender.

Ethiopia has attracted growing interest from regional banking groups due to its large population of more than 100 million people and the ongoing reforms aimed at opening the financial sector to foreign participation.

Beyond Ethiopia, Equity Group is also seeking acquisition opportunities in Angola, Zambia, and Mozambique. The bank is targeting markets linked to fast-growing trade routes, infrastructure development, and mineral-rich economies. The group is particularly focused on countries connected to regional transport corridors and resource-driven growth.

Mwangi said Equity’s expansion strategy is driven not only by individual country opportunities but also by the need to follow customers and trade routes across the continent.

The group is also strengthening its resilience against external shocks by expanding into areas such as insurance and increasing its use of financial technology and artificial intelligence. Technology has helped reduce costs and support profitability, while the group’s fintech arm, FinServe, remains central to its broader business model.

Source: Reuters