For years, Ethiopia was seen as the ultimate prize for many African banks looking to expand.
With its large population and growing economy, it promised huge opportunities and for James Mwangi and Equity Group Holdings, entering Ethiopia was not just another business move, but a central part of a long-term growth strategy.
But in business, timing and reality do not always align with ambition.
After spending years trying to break into the Ethiopian market, Equity Group is now changing course. Instead of pushing ahead with its “Ethiopia-first” approach, the bank is turning its attention to Angola, where it plans to acquire a majority stake in a local bank.
Ethiopia only began opening up its banking sector to foreign investors in late 2024, raising hopes that international banks would finally gain entry. However, strict regulations have slowed that process. Limits on foreign ownership, high capital requirements, and other conditions have made it difficult for players like Equity to move quickly.
Despite maintaining a presence in Addis Ababa for several years, Equity has yet to close a deal in the country. And in a fast-moving financial space, waiting too long can mean missing out on other opportunities.
Unlike Ethiopia, Angola is currently undergoing changes that are creating openings for new investors. Regulatory reforms, including higher capital requirements for banks, are pushing smaller institutions to merge or exit the market.
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This has created space for stronger regional players to step in, and Equity appears ready to take advantage of that window.
The move is also part of a broader ambition. Equity Group already operates in seven countries and has set its sights on expanding to 15 markets by 2030. Entering Angola would bring it one step closer to that goal, while still keeping the door open for Ethiopia in the future, should conditions improve.
For Mwangi, this is less about abandoning a dream and more about adjusting to reality. Africa’s banking landscape is not uniform, and each market comes with its own pace, rules, and risks. What works in one country may take years to unlock in another.
At the same time, the bank is making this shift from a position of strength. Equity recently reported strong financial performance, with profits rising significantly, giving it the confidence to pursue new opportunities across the continent.
