Ethiopia’s Liberalised Financial Market Offers Opportunities For Malaysian Banks - Tengku Zafrul 

From M. Saraswathi

ADDIS ABABA, Nov 20 (Bernama) -- Ethiopia’s fully liberalised financial industry presents a promising opening for Malaysian banks, particularly in Islamic finance, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said the Malaysian delegation, which included major players such as Maybank and CIMB, had used the bilateral business platform to engage with their Ethiopian counterparts at the Ethiopia-Malaysia High Level of Business Forum on Wednesday.

“I had the opportunity to meet the Finance Minister (Ahmed Shide) today. He is also welcoming Malaysian financial institutions, especially (in the area of) Islamic banking. They have completely liberalised the financial industry,” he said at the end of Prime Minister Datuk Seri Anwar Ibrahim’s official visit here. 

Tengku Zafrul, who is part of the delegation, said the country, with its young population of about 130 million, offers immense potential for Malaysian investments and exporters.

“So, like what the Prime Minister said, it is still in the early stage. Their gross domestic product (GDP) per capita is not as advanced as ours. However, their GDP growth last year was 9 per cent,” he said. 

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Other quick win areas include manufacturing, property development, logistics and transportation, automotive parts, halal industry and pharmaceuticals.

“Therefore, we will see how we can access markets in Ethiopia and vice versa,” he said.

Tengku Zafrul said Ethiopia offers a strong foundation for deeper cooperation, especially in high-potential sectors such as digital technology, renewable energy, and Islamic finance.

This collaboration creates new opportunities to position Ethiopia as a strategic gateway for Malaysian products entering the continent.

“We also welcome companies and investors from Ethiopia to explore opportunities in Malaysia, ASEAN, and the Asia-Pacific region, making us a bridge that connects Africa’s potential to Asia’s dynamism.”

Tengku Zafrul said Anwar and Ethiopian President Taye Atske-Selassie Amde, who were present at the business forum, supported the idea of establishing a Malaysia-Ethiopia Business Chamber. 

“It is a good idea. We will work through our chambers. We usually have the National Chamber of Commerce & Industry to be the secretary for this. We will work with my counterpart to ensure the formation of the Malaysia-Ethiopia Business Chamber on our return to Malaysia,” he said.

Tengku Zafrul also said a joint commission, or joint trade committee, is needed to ensure that both governments facilitate the business chambers, proposals and ideas.

In 2024, Ethiopia was ranked as Malaysia's 26th largest trading partner on the African continent, with bilateral trade valued at RM625.6 million. Malaysian exports grew by 50 per cent against the previous year to RM579.9 million. 

Malaysia’s exports to Ethiopia comprise mainly electrical and electronic products; palm oil and palm oil-based agricultural products; chemical and chemical products; and textiles, apparel, and footwear.

Imports from Ethiopia include agricultural products, transport equipment, and metalliferous ores and metal scrap.

The trade balance was in Malaysia’s favour. 

-- BERNAMA