The National Bank of Ethiopia held a validation workshop for Ethiopia’s National Interest-Free Finance Strategy (NIFFS). The workshop brought together representatives from the Ethiopian Islamic Affairs Supreme Council, members of the Steering and Technical Committees, bank regulators, microfinance institutions, insurance institutions, and government entities.
Opening the workshop, H.E. Solomon Desta, Vice Governor of the National Bank of Ethiopia’s Financial Stability Cluster, stated that the National Interest-Free Finance Strategy represents a critical step toward strengthening Ethiopia’s financial sector and promoting interest-free finance as part of a more diverse and inclusive financial system. He highlighted that interest-free finance has already played an important role in enhancing financial inclusion, mobilizing savings, and expanding access to financing for individuals and businesses across the country.
Mr. Solomon emphasized that interest-free finance should be understood as an inclusive financial service that broadens consumer choice, encourages participation in the formal economy, and contributes to wider social and economic development. He further explained that a strong and well-coordinated interest-free finance ecosystem can support Ethiopia’s national priorities, including financial inclusion, private sector growth, and economic modernization.
The Vice Governor noted that Ethiopia has made significant progress in establishing the foundation for interest-free finance. However, he stressed that the sector now requires stronger coordination, better strategic alignment, and a clear long-term direction. According to him, this is why the National Interest-Free Finance Strategy is particularly important at this stage of the sector’s development.
H.E. Solomon Desta also underlined that the successful implementation of the strategy will depend on the collective efforts of policymakers, regulators, financial institutions, development partners, academia, industry associations, fintech companies, and other stakeholders. He called for continued collaboration among all actors to ensure sustainable growth and development of the interest-free finance industry in Ethiopia.
During the workshop, participants were encouraged to thoroughly review the draft strategy and provide constructive feedback. The Vice Governor asked participants to examine the legal and regulatory roadmap to ensure consistency with existing laws and the broader financial system. He also urged stakeholders to evaluate the proposed implementation timeline, prioritization framework, and related capacity-building requirements. In addition, participants were requested to assess the risk management framework, particularly in relation to governance, Sharia compliance, and systemic stability, while providing practical recommendations to further strengthen the draft strategy.
