What is in Ethiopia and Islamic Bank without Interest ?
In Ethiopia, an Islamic bank without interest is by definition a financial institution authorized by the National Bank of Ethiopia (NBE) to conduct interest-free banking (IFB)—mobilizing and advancing funds in a manner consistent with Islamic/Shariah principles and explicitly avoiding the payment or receipt of interest (Riba).
In Ethiopia, an Islamic bank is for the country’s Muslim community—and for wider financial inclusion— crucial as It enables formal saving, payments, and financing without compromising religious norms; it also channels savings into the real economy through trade and leasing rather than interest-bearing loans.
In Ethiopia, Islamic banks with no Riba have the legal foundation that has a pillar: Directive SBB/51/2011 opened the door via IFB windows inside conventional banks and required NBE authorization, segregation of IFB funds, separate books, and monthly reporting, amended through replacement Directive SBB/72/2019 created the category of a full-fledged “interest-free bank” (in addition to windows) and anchors the activity squarely in Shariah-consistent finance.
Can a non-Muslim in Ethiopia use the services of an Islamic Bank without interest ?
Yes. Anyone—Muslim or non-Muslim—can use Ethiopia’s interest-free (Islamic) banking services. The National Bank of Ethiopia’s IFB directives define a banking model (interest-free) and set licensing/oversight rules; they do not restrict customers by religion.
Is there a list of Islamic banks in Ethiopia ?
Yes. Ethiopia has four full-fledged, interest-free (Islamic) banks licensed by the National Bank of Ethiopia. Here they are with their official sites:
- ZamZam Bank S.C. — Ethiopia’s first fully licensed interest-free bank. zamzambank.com
- Hijra Bank S.C. — full-fledged interest-free bank. hijra-bank.com
- Rammis Bank S.C. — full-fledged interest-free bank (licensed Oct 4, 2022). rammisbank.et
- Shabelle Bank S.C. — operates entirely under Islamic banking principles. Shabelle Bank
The National Bank of Ethiopia (NBE) confirms the sector includes four private interest-free banks as of its latest Financial Stability Report (covering up to June 2024). For the most authoritative, current view, check NBE publications and the Banks directory. National Bank of Ethiopia
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