Banque Pour le Commerce et l’Industrie Mer Rouge (BCMR), one of Djibouti’s largest lenders, is weighing an expansion into Ethiopia as the country’s banking sector undergoes its most significant liberalisation in decades.

Sebastien Nahom, BCMR’s chief executive, said the bank sees Ethiopia as a “strategic growth destination” and is preparing to engage with regulators and private-sector players. He highlighted opportunities for cross-border collaboration with Ethiopian businesses operating both in Djibouti and at home.

The interest comes after the Ethiopian embassy in Djibouti held talks with BCMR executives to promote investment opportunities. Ambassador Kebede assured the bank that the embassy would facilitate its plans, describing such ventures as a step toward stronger financial integration between the two neighbours.

Ethiopia only recently opened its financial sector to foreign participation. Parliament passed the Banking Business Proclamation in December 2024, permitting international banks to set up subsidiaries, open branches, or acquire stakes in local lenders. In June 2025, the National Bank of Ethiopia followed with Directive No. SBB/94/2025, outlining licensing procedures and inviting applications from foreign institutions.

BCMR executives said these regulatory changes, coupled with Ethiopia’s ongoing macroeconomic adjustments, had created a more favourable investment climate that aligns with the bank’s regional growth strategy.