Bahrain’s iibGroup Explores Correspondent Banking With Bank of Abyssinia

November 7, 2026 | By Semahegn Nigatu

Bahrain-based iibGroup Holdings W.L.L. has held discussions with Bank of Abyssinia on correspondent banking, trade finance and cross-border transactions, as the group establishes a presence in Ethiopia following approval from the National Bank of Ethiopia (NBE) to open a representative office in Addis Ababa.

Sohail Sultan, chairman of iibGroup Holdings, met Bekele Zewdu, chief executive officer of Bank of Abyssinia, in Addis Ababa. Members of the two institutions’ leadership and international banking teams also attended the meeting.

According to iibGroup, the discussions focused on correspondent banking, trade finance and cross-border transactions. Neither institution has disclosed whether the talks resulted in a formal agreement or specific arrangements.

The meeting follows iibGroup’s receipt of NBE approval to establish a representative office in Addis Ababa. The group announced the development on March 27, 2026, identifying Aynalem Ababu as its chief representative officer.

The approval gives the group a formal presence in Ethiopia, allowing it to develop relationships with local financial institutions, assess market opportunities and connect Ethiopian businesses with its international network. However, a representative-office licence does not authorise iibGroup to conduct commercial banking operations in the country.

The distinction is significant as Ethiopia begins implementing reforms that allow foreign banks to enter a sector previously reserved for domestic institutions. Establishing a representative office provides iibGroup with a foothold in the market, but any move to provide banking services directly would require the relevant regulatory authorisation.

iibGroup operates banking businesses in Djibouti, Cape Verde and The Bahamas. Its presence in Djibouti gives it an existing regional operation in a country that serves as the principal trade gateway for landlocked Ethiopia.

Correspondent banking arrangements enable financial institutions to facilitate international payments and settlements through relationships with banks in other countries. They are important for cross-border trade, remittances and foreign currency transactions.

The discussions with Bank of Abyssinia could provide a channel for cooperation between the two institutions, but no correspondent banking agreement or investment commitment has been announced.

Source: FSX Business News