@AddisInsight – Ethiopian Business Review

Awash Bank has reported strong performance for the 2024/25 fiscal year, marking a year of strong financial performance and grown digital presence. While the bank says 77% of its services are now delivered through digital channels, it also opened 52 new branches, increasing its national network to 989.

This mix of digital growth and physical expansion was shared by the bank’s senior officials during a press briefing held yesterday at the Skylight Hotel in Addis Ababa. CEO Tsehay Shiferaw and his team met with journalists to walk through the numbers, talk about the bank’s direction, and reflect on what has been a busy and productive year.

Despite the digital shift, Awash is showing no signs of stepping back from on-the-ground presence. The bank’s leadership says this approach aims to serve both the growing number of digital-first customers and those who still rely on face-to-face banking across the country.

During the fiscal year, the bank’s total revenue rose to ETB 64 billion, up 77% from the previous year. It also registered over ETB 22 billion in pre-tax profit, supported by growth in customer numbers and loan activities. According to CEO Tsehay Shiferaw, the bank’s performance benefited from aligning its strategy with national economic priorities and focusing on financial inclusion.

More than 3 million new customers joined Awash during the year, pushing its total client base past 15 million. Deposits reached ETB 332 billion, with interest-free banking contributing over ETB 37 billion, or around 11.2% of the total.

Digital banking is clearly becoming central to the bank’s operations. Awash processed over ETB 1 trillion in digital transactions, representing more than 76% of all its transactions. Through its digital lending platform “Awash LeHulum,” over ETB 493 million in loans were extended to more than 301,000 customers, without requiring any collateral.

At the same time, the bank mobilized over USD 2 billion in foreign currency, reflecting a 25% rise from the previous year. It also disbursed loans exceeding ETB 219 billion, a 20% increase, with ETB 16.6 billion going specifically to small and micro businesses. Awash says it reached more than 14,000 borrowers in this segment alone.

With support from the Mastercard Foundation, the bank also delivered ETB 1.3 billion in financing to around 12,000 small enterprises through the MESMER program.

The Institute of Foreign Affairs (IFA), in collaboration with the Ministry of Foreign Affairs, held a high-level conference on Tuesday at the Sheraton Hotel under the theme “Exploring New Avenues: Economic Diplomacy as a Mainstay of Ethiopian Foreign Policy.”

The forum brought together leading government institutions — including the Ministry of Finance, Ethiopian Securities Exchange, Ethiopian Investment Holdings, Ethiopian Investment Commission, and the Ministry of Foreign Affairs — to discuss how to align foreign policy with Ethiopia’s economic ambitions.

Central to the discussions was the Homegrown Economic Reform Agenda, launched in September 2019, which aims to liberalize and modernize Ethiopia’s economy. Panelists explored how the reform program is positioning the country to better integrate with the global economy and attract quality investments.

In his opening remarks, IFA Executive Director Jafar Bedru stressed the need to shift diplomatic efforts beyond traditional political frameworks. “Our diplomatic engagements must transcend conventional paradigms and adopt a proactive, business-oriented approach — one that prioritizes investment and trade facilitation,” he said.

Ambassador Workalemahu Desta, Political and Economic Diplomacy Advisor, MoFA, acknowledged that while Ethiopia’s economic and business diplomacy is making progress, it still falls short of matching the opportunities created by recent reforms. He noted the growing global demand for competitive investment destinations, emphasizing Ethiopia’s strategic potential.

“Globally, production and labor costs are soaring. Multinational companies are actively seeking low-cost, stable, and business-friendly environments — and Ethiopia is emerging as a top destination,” he said.

Ambassador Workalemahu also underscored Africa’s growing strategic importance, pointing to the African Continental Free Trade Area (AfCFTA) as a transformative platform. “AfCFTA is unlocking a vast market for investors across Ethiopia. Additionally, our membership in BRICS and the New Development Bank enhances our positioning within the evolving global economic order,” he added.

Dr. Tilahun Kassahun, CEO of the Ethiopian Securities Exchange (ESX), highlighted the need to diversify Ethiopia’s financial landscape to sustain economic growth. He emphasized that beyond traditional financing mechanisms, both local and foreign private investors require access to alternative financial instruments such as portfolio investments. He mentioned that amid the launch of the capital market in Ethiopia, the Ministry of Foreign Affairs must attract investments from abroad as the old technical way of investment has changed to easy and Central Securities Depository. “Beyond simply counting how many remittance accounts are opened, a new key performance indicator (KPI) should be how many CSD accounts are created,” he added.

He also revealed that the capital market is expected to integrate with the interbank lending system in the first week of July. Just six months after its launch, the interbank market has already facilitated over ETB 800 billion in transactions, with daily volumes reaching several ETB billion, he reported.

This comes on the heels of the launch of a Diplomatic Guide for the Homegrown Economic Reform Agenda, unveiled on Monday by the Ministry of Foreign Affairs in collaboration with the Ministry of Finance, the Ethiopian Securities Exchange, and Ethiopian Investment Holdings.

Awash Bank Goes Digital with 77% of Services, But Keeps Planting Branches Across the Nation

Key Government Institutions Convene to Reinforce Economic Diplomacy as Pillar of Ethiopian Foreign Policy