Ethiopia Advances Financial Sector Modernization:  TDB Group

Addis Ababa, February 25, 2026 –Trade and Development Bank (TDB) Group affirmed that Ethiopia has been advancing the modernization of its financial sector.

President and CEO of TDB Group Admassu Tadesse told ENA that Ethiopia is making historic progress in modernizing its banking system and broader financial sector. 

The president further elaborated that the country has embarked on critical reforms that had long been overdue.

"It has been an incredible few years that the reforms have been very difficult, but they were necessary," he said, noting that the measures were essential for Ethiopia to narrow the gap with other African economies that have made significant advances in recent years.

According to the president, the macroeconomic reform agenda is yielding positive results.

"The macroeconomic reforms have been going quite well," he stated, adding that the policy direction is now clearly geared toward enabling private sector growth.

He further explained that while public infrastructure investment has played a pivotal role over the years, sustained economic expansion will depend on a vibrant private sector capable of generating employment and boosting national revenue.

The current reform framework is structured to remove obstacles that previously constrained private enterprise, he stated.

"The macroeconomic reforms have been designed in such a way to ensure that there is no impediment to the development of the private sector, the president affirmed, adding, “It has not always been this way in the past, but now it is a much more enabling environment, at least from the broad macroeconomic side of things."

However, he cautioned that progress at the macro level must be complemented by improvements within financial institutions and regulatory systems.

"There have been very important measures taken, but at the micro level, there still needs to be work," he added.

Admassu also stressed the importance of mobilizing both domestic and international financing to address savings and investment gaps, noting that sustainable growth across Africa depends on stronger financial intermediation and expanded access to capital.