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(Ecofin Agency) – ZamZam Bank has obtained a license from the Ethiopian banking regulator to conduct Islamic banking in the country. With this license, ZamZam became the first officially recognized institution to specifically offer financial products and services that comply with Islamic law, according to local media.
In May 2019, Abiy Ahmed, the Ethiopian Prime Minister, expressed his approval in favor of the establishment of financial institutions devoted entirely to Islamic finance. In June of the same year, the Central Bank issued a directive authorizing the creation of Islamic banks.
Several institutions have expressed interest in the activity, including ZamZam Bank, which submitted its application to the Central Bank. The bank was authorized to open its capital to investors to raise funds for its plan. As part of this process, ZamZam sold shares worth $ 18.3 million.
According to the National Bank of Ethiopia, the presence of institutions fully dedicated to Islamic finance in the country will enhance financial inclusion and help reach the part of the population that is still outside the banking system.
Chamberline moko
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