Speaking at the 13th International Microfinance Conference in Addis Ababa, NBE Vice Governor Solomon Desta said Savings and Credit Cooperative Societies (SACCOs) and pension funds will soon face stronger central oversight. He said the current regulatory gap is no longer sustainable as some SACCOs have grown into major financial actors and now compete with licensed financial institutions. Commercial banks and microfinance institutions are closely supervised by the NBE, while SACCOs and large pension funds have remained under fragmented or indirect oversight despite managing substantial assets. The NBE also plans to push for stricter supervision of pension funds, including investment guidelines, actuarial oversight, and transparent reporting. The reforms come as Ethiopia’s financial sector faces rising competition from foreign banks and fintech firms.

Source: Ethiopian News March 30, 2026 12:37 UTC