Ethiopia PM picks Eyob Tekalign Tolina as governor of the national bank

In a strategic move poised to impact Ethiopia’s financial landscape, Prime Minister Abiy Ahmed has appointed Eyob Tekalign Tolina as the new governor of the National Bank of Ethiopia (NBE). Tolina steps into this pivotal role at a critical juncture as Ethiopia embarks on comprehensive financial reforms aimed at opening the country’s market to private sector-led investments and integrating its banking system into the global financial ecosystem.

Tolina, a seasoned political economist with significant experience in both domestic and international economic affairs, succeeds Mamo Mihretu, a consequential figure who introduced numerous financial reforms during his tenure. Mihretu’s resignation on September 3 was reportedly for personal reasons, leaving behind a legacy of opening up Ethiopia’s banking sector and laying the groundwork for future financial strategies.

Ethiopia’s drive for economic transformation is evident in its plans to implement interest-based monetary policy frameworks and integrate international banking standards like Basel II and Basel III. As Tolina assumes office, he will be at the forefront of these transformative reforms. His appointment is seen as timely, given his extensive background in fiscal policy and his role as a key figure within the government and financial circles. Tolina’s experience includes serving as a State Minister of Finance, handling public finance and fiscal policy, and negotiating Ethiopia’s multilateral and bilateral debt deals.

In an exclusive interview with CNBC Africa, Meire Fikire Johannes, CEO of Pragma Investment Advisory, elaborated on the significance of Tolina’s appointment. Johannes emphasized Tolina’s in-depth understanding of Ethiopia’s macroeconomic landscape and expressed confidence in his ability to navigate the complex reforms underway. These reforms are critical not only for Ethiopia’s economy but also as part of the agreements with the International Monetary Fund (IMF).

“The market needed confidence that someone capable was at the helm,” Johannes noted. “Given Eyob Tekalign’s history and the strategic changes he instituted as a board member of the NBE, the market’s confidence appears well-placed.”

Tolina faces the immediate task of leading the Monetary Policy Committee as it reviews policy rates and considers the lifting of credit caps on the banking sector. This move is intended to catalyze the opening of Ethiopia’s banking sector to foreign entrants, including banks from Kenya, Nigeria, and the UAE, marking the first time in fifty years that foreign banks can operate in Ethiopia.

With the looming deadline of June 2026, Ethiopian banks must meet newly established capital requirements, a development posing both challenges and opportunities for mergers and acquisitions within the sector. Tolina’s leadership will be crucial in steering these decisions to ensure a robust financial infrastructure capable of supporting the envisaged economic transformation.

Beyond his technical skills, Tolina is expected to maintain a delicate balance between government and market interests, aligning Ethiopia’s financial strategies with broader economic goals and ensuring no monetary financing from the central bank is directed towards the government, thereby maintaining inflation within the target range.

Overall, the transition from Mihretu to Tolina underscores Ethiopia’s commitment to strategic economic reforms and modernization, promising a dynamic period ahead for the nation’s financial sector.

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