* Andualem Hailu (PhD) Appointed CEO
KEYIR NEWS - In a significant development for the financial sector, Awash Investment Bank is set to commence operations with an initial capital of 200 million birr, marking a major milestone in the expansion of private investment banking in the country.
The new bank, an affiliate of Awash Bank, has secured a business license and is expected to play a vital role in bolstering the investment landscape in Ethiopia. Awash Bank has taken a commanding 95 percent ownership stake in the newly formed investment bank, while the remaining five percent is held collectively by individual investors and corporate entities.
According to information provided by Awash Bank, the investment arm is already capitalised and poised to begin operations. There are also concrete plans to double its capital to 400 million birr in the near future, further strengthening its financial foundation and lending capacity.
The newly appointed Chief Executive Officer, Andualem Hailu (PhD), brings extensive expertise to the role. His leadership is expected to shape the bank’s strategic direction as it navigates Ethiopia’s evolving financial ecosystem.
Andualem’s appointment reflects a broader move towards more specialised leadership within investment banking circles, aiming to foster innovation, compliance, and sustainable growth.
Awash Investment Bank becomes one of the first such entities in Ethiopia, as the country gradually introduces investment banking operations to complement traditional commercial banking.
Investment banks play a crucial role in capital markets by facilitating large-scale investments, underwriting securities, advising on mergers and acquisitions, and offering asset management services.
At the corporate level, two firms are reported to hold a stake of up to one percent each. One of these is Awash Insurance Company, which is formally registered as a shareholder.
This alignment among Awash financial group entities signals a coordinated strategy to dominate multiple segments of Ethiopia’s expanding financial services market.
The establishment of Awash Investment Bank comes amid broader financial sector reforms introduced by the Ethiopian government, including plans to liberalise capital markets, open the stock exchange, and encourage foreign direct investment.
Analysts see the move as part of a larger shift toward a more sophisticated, diversified financial sector capable of supporting infrastructure, industrial, and technological development.
The new investment bank is expected to target high-growth sectors such as infrastructure, manufacturing, and renewable energy, areas in which long-term financing and investment structuring are urgently needed. It is also likely to play a key role in facilitating future listings on the Ethiopian Securities Exchange, which is set to launch its first trading activities in the coming year.
With a strong capital base, dominant shareholder backing, and seasoned leadership, Awash Investment Bank is poised to become a major force in Ethiopia’s financial future.