Nigeria’s second-largest lender Zenith Bank, joins African heavyweights seeking entry into Ethiopia’s newly liberalized financial market after decades of state control.
Zenith Bank Plc, Nigeria’s second-largest lender by market capitalization, is exploring expansion into Ethiopia as the East African nation opens its long-protected banking sector to foreign competition, according to Ethiopia Business Review.
The move places Zenith among a growing list of African banking giants positioning for access to one of the continent’s last major closed financial markets. Over the past year, Kenya’s KCB Group and Equity Group, Djibouti’s Banque pour le Commerce et l’Industrie Mer Rouge, and South Africa’s Standard Bank Group have all signaled interest in Ethiopia.
If completed, Zenith’s entry would rank among the most significant cross-border banking expansions since Ethiopia formally opened its financial sector to foreign lenders in June 2025, ending nearly five decades of state dominance.
Zenith is not alone among Nigerian banks assessing the opportunity. In January, FirstBank, Nigeria’s oldest lender, also indicated interest in expanding into Ethiopia, Africa’s second-most populous country with more than 130 million people.
Ethiopian officials say the government is actively courting foreign financial institutions as part of broader reforms aimed at deepening capital markets, increasing competition, and modernizing financial services. Zinabu Yirga, deputy commissioner of the Ethiopian Investment Commission, said the country’s large economy, expanding trade links, and infrastructure investment pipeline make it attractive for long-term financial sector investment.
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Zenith Bank said it is evaluating entry options, citing strong reform momentum, unmet demand for sophisticated financial products, and rapid adoption of digital banking. The lender is particularly focused on technology-driven services and financing large infrastructure and government-led projects, according to its international expansion team.
Founded in 1990 and headquartered in Lagos, Zenith operates more than 500 branches and business offices across Nigeria. It has subsidiaries in Ghana, Sierra Leone, and The Gambia, a representative office in China, and a UK arm licensed in 2007. Zenith Bank (UK) Limited listed $850 million worth of shares on the London Stock Exchange in 2013.
The bank has been pursuing broader international growth. In July, reports said it was in advanced talks to acquire a mid-sized Kenyan lender as part of its expansion across Africa, Europe, and Asia.
Zenith last year became the first Nigerian bank to post a trillion-naira profit, reporting ₦1.03 trillion ($673.6 million), narrowly ahead of rival GTCO. However, profit after tax fell 7.9 percent in the first half of this year to ₦532.2 billion, as higher interest costs and impairment charges weighed on earnings.
Ethiopia’s banking sector currently comprises 32 lenders, most of them small, with the state-owned Commercial Bank of Ethiopia accounting for about 22 percent of total assets. The International Monetary Fund projects average annual growth of 7.4 percent between 2025 and 2030, underscoring the market’s appeal as reforms accelerate and foreign banks line up to enter.