Stanbic Bank weighed a greenfield entry into Ethiopia, regional chief executive Joshua Oigara said, considering a direct-build strategy as an alternative to acquiring existing local banks in response to Ethiopia's 49% cap on foreign ownership of existing banks; a greenfield bank can be 100% foreign-owned.
BACKGROUND
"Ethiopia does not stop financial institutions from setting up from scratch if you want to own 100% of the entity," Oigara said, according to Business Daily, adding that Stanbic was confident about the route. Under Ethiopia's 2024 banking proclamation, local investors must retain at least 51% of an existing bank, leaving any foreign buyer with no more than 49%.
A greenfield strategy requires establishing operations from the ground up rather than purchasing an existing franchise.
Oigara said Kenyan enterprises had already pursued this route in Ethiopia. Stanbic did not disclose a timeline or capital commitment, and Oigara said the greenfield option remained under consideration.
Sources: Business Daily, Addis Standard
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