Ethiopia's Central Bank Opens Four Regional Branches to Strengthen Financial Oversight
Addis Ababa, 10 February 2026
The National Bank of Ethiopia has launched construction of four new regional branches in Bahir Dar, Jimma, Hawassa, and Dire Dawa as part of its 2026 expansion strategy. These high-tech facilities aim to decentralise financial supervision and improve currency distribution across key economic centres. The project faces significant challenges, with construction delays of up to a year due to local unrest in Bahir Dar and site acquisition hurdles in other locations.
Strategic Decentralisation Beyond Addis Ababa
The National Bank of Ethiopia’s expansion represents a fundamental shift from centralised operations in Addis Ababa to establishing a physical presence in Ethiopia’s most economically significant regional centres [1]. According to Eyob Gebreyesus, NBE’s Vice Governor for Corporate Services, these branches will be “modest but high-tech,” prioritising advanced currency handling systems and sophisticated digital infrastructure over expansive physical facilities [1]. This strategic positioning in Bahir Dar, Jimma, Hawassa, and Dire Dawa enables the central bank to provide real-time regulatory supervision of regional financial institutions whilst facilitating smoother money distribution networks across the country [1].
Implementation Challenges and Timeline Setbacks
The ambitious expansion has encountered significant operational hurdles that have pushed completion timelines back by up to a year [1]. Local unrest in Bahir Dar has disrupted construction activities, whilst site acquisition difficulties in two other cities have created additional complications for the NBE’s deployment schedule [1]. These setbacks have necessitated what officials describe as a “dual-track” coordination approach, where delays in civil engineering work frequently clash with the installation of sophisticated technology systems [1]. To address these challenges, the NBE has now deployed onsite representatives to each location to ensure the final construction phase meets the central bank’s high-tech specifications [1].
Economic Context and Reform Momentum
The branch expansion occurs alongside Ethiopia’s broader macroeconomic reform programme, which NBE Governor Dr Eyob Tekalign credits with revitalising the country’s economic performance [2]. Speaking at an international conference on developing nations’ economies in AlUla, Saudi Arabia, organised jointly by Saudi Arabia’s Ministry of Finance and the International Monetary Fund, Dr Tekalign highlighted how these reforms have positioned Ethiopia for sustained growth [2]. The governor indicated that Ethiopia is now recording growth rates exceeding pre-COVID-19 levels, with projections suggesting the country will achieve double-digit growth in 2025/26 [2].
Financial Sector Transformation and Refugee Implications
The NBE’s regional expansion forms part of a comprehensive financial sector overhaul that includes significant policy changes scheduled throughout 2026 [3]. Most notably, fuel subsidies are set to be completely removed in February 2026, whilst the National Bank plans to gradually withdraw from gold trading by the end of 2026, allowing private banks to enter this market [3]. Additionally, restrictions on banks’ annual lending rates will be lifted by the end of 2026, representing a substantial liberalisation of Ethiopia’s financial sector [3]. For Ethiopian refugees considering repatriation, these developments signal improved economic stability and enhanced financial infrastructure in key regional centres, potentially making return more viable as banking services become more accessible outside the capital. The strengthened financial oversight and currency distribution networks could contribute to reduced economic volatility, addressing one of the fundamental concerns that drive displacement in the first place [GPT].