CIC insurance has announced a plan to expand to Ethiopia to increase its footprint and marks business territory
Chief Executive Officer Tom Gitogo told media that the insurer was keenly following Prime Minister Abiy Ahmed’s administration’s efforts to free up the country’s financial sector that has for decades been under State control.
The firm’s planned entry would increase its countries of operation to seven, including Kenya. Currently, the insurer is present in Uganda, Malawi and South Sudan.
“We are considering Ethiopia but the liberalization of the financial services in that country still has some way to go. We are monitoring keenly,” Mr. Gitogo said.
Other local firms that are eying Ethiopia include telecoms giant Safaricom and Kenya’s two biggest lenders —KCB and Equity Bank.
The banks have signaled plans to enter the horn f Africa country via the acquisition of local entities.
Chief Executive Officer Tom Gitogo
South Africa’s Rand Merchant Bank (RMB) new report, ‘Where to Invest in Africa’, listed Ethiopia among the top 10 African countries to invest in 2019.
“It is time for investors to seize business opportunities offered by landlocked Ethiopia as the country seeks to recover its past glories and improve its economy…There are significant changes in the top 10 African countries to invest in and some warnings for the future economic outlook across the continent,” said the report.
“Despite significant socio-political instability negatively impacting the country’s business environment and investment potential, Ethiopia has jumped up one spot into fourth as compared to fifth in the previous sixth and fifth publications. If stability came with economic progress, the now East African largest economy could have ranked higher. As a result of Ethiopia’s economic gains, Kenya has lost its placing as East Africa’s largest economy and moved down to sixth on the investment ranking,” the report said.
However, Kenya is still one of the continent’s strongest economies, but it comes with frailties that highlight many of the key issues facing African nations: corruption, ethnic divides political instability and rising debts, according to the report.