Zemen Bank Unveils Z-Qamar, a Fully Segregated Interest-Free Banking Service

EBR_News Jun 25, 2026

Betegbar Yaregal

Zemen Bank has officially launched its interest-free banking service, branded as “Z-Qamar,” marking the bank’s entry into one of Ethiopia’s fastest-growing financial segments as it seeks to expand its customer base and diversify its product offerings.

The service was unveiled on Wednesday, at a ceremony attended by banking executives, religious leaders, and members of the bank’s newly established Sharia Advisory Board.

Speaking at the launch, Zemen Bank Chief Executive Officer Dereje Zebene described the initiative as the culmination of a long-term strategic effort rather than a new standalone product.

“This service is not a new banking service; rather, it is the next chapter of a 17-year journey,” Dereje said, noting that the bank spent the past two years preparing the operational, governance, and compliance frameworks required to launch the service.

He added that interest-free finance has evolved into a global industry handling trillions of dollars and has become an important tool for financial inclusion, economic development, and sustainable growth.

In an interview with Ethiopian Business Review, Abdulkadir said the bank expects to attract up to 10,000 customers within the first year of operation and aims to mobilize billions of birr in deposits over the next two to three years.

He noted that the bank drew lessons from interest-free banking models in Pakistan, the United Arab Emirates, and Nigeria while designing the new service.

Licensed by the National Bank of Ethiopia, the service operates under the brand name “Z-Qamar,” combining the letter “Z” for Zemen Bank with the Arabic word “Qamar,” meaning moon.

According to the bank, the brand symbolizes light, stability, transparency, and excellence.
The launch follows an announcement made during Zemen Bank’s 17th Annual General Meeting in October 2025, when the bank disclosed plans to establish a full-fledged Sharia-compliant banking operation as part of its broader growth strategy.

Enye Bemir, Chairperson of Zemen Bank’s Board of Directors, said the new service is expected to create fresh market opportunities for the bank and strengthen its competitive position.

“This product will open up new market opportunities for our bank, expand our customer base, strengthen our deposit portfolio, and enable us to establish a strong position in our country’s rapidly growing interest-free finance services,” she said.

According to a presentation delivered by Abdulkadir Wolela, Department Manager for Interest-Free Banking Services, Z-Qamar has been structured with separate governance, operational, and compliance systems designed to ensure full adherence to Sharia principles.

The bank has established an independent Sharia Advisory Board comprising Ustaz Abrar Shifa, Tofik Bahiru Nuru, and Abdulatif Taha Mohammed.

The board is responsible for overseeing compliance with Sharia standards across all products and services.

“As members of the Sharia Advisory Board, we are responsible for ensuring that all products and services offered under Z-Qamar are developed and delivered in accordance with Sharia principles and standards,” said Ustaz Abrar Shifa, Chairman of the board.

Abdulkadir explained that the bank has introduced separate branding, operational processes, governance structures, and physical service delivery spaces to ensure the interest-free banking operation remains distinct from conventional banking activities.

The service offers a range of Sharia-compliant products, including Wadi’ah savings and current accounts, Mudarabah investment accounts, Murabaha financing facilities, and Qard al-Hasan interest-free loans designed to support customers requiring social financing.

Customers can access the service through dedicated windows within branches, specialized service units, and fully fledged interest-free banking branches.

With Z-Qamar, Zemen Bank is positioning itself to compete in a market segment that has become increasingly important in Ethiopia’s banking industry, while broadening access to formal financial services for previously underserved customer groups.