Global Gateway How Visas Arrival Will Unlock Broad Benefits For Investment In Ethiopia
VISA’s Potential Entry into Ethiopia Signals Major Leap in Financial Sector Liberalization
Nairobi, October 15, 2025 (Ethio Insight) – Ethiopia’s comprehensive efforts to liberalize its financial sector are poised for a significant boost following high-level discussions between the Ethiopian Investment Commission (EIC) and global digital payments giant, VISA. The potential entry of Visa into the country’s financial ecosystem is being hailed as a critical step that will unlock broad benefits for local and international investments and firmly anchor Ethiopia in the global market.
A Policy Shift Attracting Global Giants
EIC Commissioner, Dr. Zeleke Temesgen, met with Mr. Tarek Mohammed, President of Visa for Central Europe, the Middle East, and Africa, to discuss the corporation’s establishment of operations in Ethiopia. This meeting underscores the traction gained by the government’s aggressive reform agenda.
Dr. Zeleke emphasized that the Ethiopian government has enacted over 198 legal reforms to create a conducive investment climate. Crucially, among these far-reaching changes, is the landmark decision to open the long-closed financial sector to foreign investors. This strategic opening, which followed the parliamentary approval of a new Banking Business Proclamation in late 2024, is specifically designed to attract global leaders like Visa.
“The government’s decision to open the financial sector is a key step aimed at attracting global players like Visa,” Dr. Zeleke stated, reassuring Mr. Mohammed that the EIC is fully committed to providing all necessary support and facilitation for Visa’s successful entry.
Connecting Ethiopia to the Global Economy
For Visa, Ethiopia represents one of Africa’s largest and most underdeveloped financial markets, presenting immense growth potential. Mr. Tarek Mohammed highlighted the transformative impact Visa’s entry would have.
“Visa’s entry into Ethiopia’s financial sector will bring broad benefits for investments operating in the country, enabling them to actively participate in the global market,” Mr. Mohammed affirmed. This integration is vital for both large-scale foreign direct investments (FDI) and the burgeoning domestic private sector, particularly by modernizing payment infrastructure and facilitating cross-border commerce.
Mr. Mohammed also requested the necessary cooperation from the EIC to ensure a smooth and successful operational launch.
The Broader Impact: Modernization and Inclusion
Visa’s presence is expected to yield multiple benefits across the Ethiopian economy:
- Accelerated Digital Transformation: The adoption of global payment standards will accelerate the country’s transition to a digital economy, improving efficiency and transparency in transactions for businesses and consumers alike. Visa’s involvement is key to deepening digital payment acceptance, which is critical for Small and Medium Enterprises (SMEs) to scale and access larger markets.
- Enhanced Financial Inclusion: With a significant portion of the Ethiopian population still unbanked or underbanked (financial inclusion stood at around 35% in recent years), the entry of international payment networks and financial services is expected to bring a wider range of products and services, making formal finance more accessible.
- Boost to Investment and Competition: The liberalization policy, which also allows foreign banks to acquire stakes in local banks, is aimed at attracting new capital, advanced technology, and innovative products.The increased competition will compel domestic financial institutions to enhance their service quality and technological adoption, strengthening the overall financial ecosystem.
Landmark Economic Reform Agenda
The government’s efforts to attract VISA are part of a wider Homegrown Economic Reform (HGER) agenda. Over the past few years, Ethiopia has systematically opened other previously state-controlled sectors, including telecommunications and logistics.
The explicit move to open the banking sector, a development that has drawn interest from major African and Middle Eastern banks is a defining moment in this economic trajectory. By welcoming global fintech and payment giants, Ethiopia signals its clear intention to create a more open, competitive, and investment-friendly environment, transforming its financial sector from a protected entity into a dynamic engine of economic growth.
The successful establishment of Visa’s operations will serve as a powerful signal to the international investment community about the irreversible nature and commitment behind Ethiopia’s latest wave of economic opening.
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