History of Banking and Insurance in Ethiopia

“In Ethiopia, the banking and insurance sectors are integral to the country’s financial sector and economy. They have been crucial in helping the country attain its macroeconomic stability and growth objectives. This research paper aims to provide insight into the origin and development of Ethiopia’s banking and insurance sectors since 1905. The study is based on the review of literature from various secondary sources. The paper concludes that the 120-year journey of Ethiopia’s banking and insurance sectors is gradual and does not yet permit foreign banks and insurers to operate in the country’s financial market. Ethiopia’s banking and insurance sectors currently have small market sizes compared to many other low-income Sub-Saharan African countries and are incompatible with international world experiences.