The National Bank of Ethiopia (NBE) is launching a Strategy Plan for the period of 2023-2026 to navigate through the challenges and changes of the modern economic landscape. This plan is a robust framework designed to align the bank’s core activities with international standards while addressing Ethiopia’s distinctive economic circumstances and ambitions.
The Strategy Plan is built around five pivotal objectives that will guide the NBE’s efforts: price and external stability, financial stability, broadening financial inclusion with digitization, operational excellence, and enhanced governance systems. Each objective is backed by comprehensive action plans, Key Performance Indicators (KPIs), and specific targets for the next three years.
Key initiatives include transitioning to a price-based monetary policy using interest rates, expanding the financial sector to include foreign investment and capital markets, and modernizing internal operations to enhance transparency and research capabilities.
The NBE is dedicated to executing these strategic objectives to build a stronger, more equitable Ethiopia.
NATIONAL BANK OF ETHIOPIA
FIVE STRATEGIC OBJECTIVES
ENSURE PRICE AND EXTERNAL STABILITY*
1.1: Transition to a market-based monetary policy regime
1.2: Review current account and capital account policies for potential revisions
1.3: Establish strong data analysis and research capabilities to support NBE policy making
1.4: Enhance international foreign exchange reserves management
ENSURE FINANCIAL STABILITY
2.1: Improve regulation
2.2: Improve supervision and payment system oversight
2.3: Improve currency management system
2.4: Enhance payment system infrastructure
2.5: Introduce financial system stability functions
ENSURE FINANCIAL INCLUSION, DEEPENING AND DIGITIZATION
3.1: Implement and monitor the National Financial Inclusion Strategy action plans related to NBE, including in the area of Interest-Free Banking (IFB).
3.2: Enhance financial education and consumer protection
3.3: Establish an independent Insurance Regulatory Agency (IRA)
3.4: Ensure widespread adoption and usage of digital financial services
3.5: Improve credit reference and rating infrastructure
ENSURE EXCELLENCE IN PEOPLE , PROCESSES AND TECHNOLOGY
4.1: Transform the Bank’s Human Capital Talent Management
4.2: Ensure efficient and effective internal processes and enhance digitalization
4.3: Strengthen planning and performance management systems
4.4: Re-establish the EIFS as a Center of Excellence for the financial sector, with new strategy and improved facilities
STRENGTHEN GOVERNANCE
5.1: Establish strong institutional accountability and transparency systems 5.2: Establish and implement a modern and effective Communication Strategy 5.3: Ensure a strong and independent Internal Audit and Risk Management function