Experienced mobile money market participants have given a cautious welcome to Ethiopia’s plans to liberalize its telecommunications market, but warn that the emergence of new transaction providers is far from certain.

Ethiopia’s IMF deal is a notable step towards addressing its external imbalances and to opening up the country’s economy.

Commercial International Bank has opened a representative office in Ethiopia, implementing its programme of expansion into east Africa.

Even though the banking sector remains off-limits, foreign investment in other state-owned enterprises will support infrastructure development.

Despite a new prime minister and growing economic pressures, Ethiopia seems unlikely to seize the opportunity to open up its financial sector and lure more foreign investment.

Currency devaluations and swings in commodity prices have taken their toll on many a private equity investment in Africa in recent years, particularly for those who invested at the height of the Africa bull market between 2005 and 2013. These days, sponsors are picking their targets carefully, with a focus on domestic consumers and non-commodity exporters.