Mekelle/Tel Aviv/Nairobi/Pretoria/London፡
Shabelle Bank Deepens Regional Ties Through Strategic Engagement with Djibouti’s Business Community
By Chekole Alemu
Shabelle Bank has stepped up its regional outreach with a high-level engagement in Djibouti, reinforcing its ambition to play a larger role in cross-border trade, investment, and financial integration in the Horn of Africa.
The visit brought the Bank into direct dialogue with members of Djibouti’s business community and senior executives of key financial institutions, including CAC International Bank, East Africa Bank, and Salam Bank. Discussions focused on practical cooperation, correspondent banking, trade finance, and Shari’a-compliant financial solutions that can support growing commercial links between Ethiopia and Djibouti.
The delegation was led by H.E. Ibrahim Osman, Vice President of the Somali Regional State and Chairman of the Board of Shabelle Bank, alongside Chief Executive Officer Abduljuhad Hassen Muhammed. Bank officials described the meetings as constructive, reflecting strong mutual interest in deeper collaboration and long-term, sustainable regional growth.
The engagement aligns with Shabelle Bank’s broader strategy of positioning itself as a reliable partner for businesses operating across borders, particularly in trade corridors that are critical to Ethiopia’s economy. Djibouti remains Ethiopia’s primary gateway to global markets, making financial cooperation between institutions in both countries strategically significant.
A Shari’a-Compliant Banking Model with Regional Ambitions
Shabelle Bank is a fully licensed commercial bank in Ethiopia operating exclusively under Islamic banking principles. It is fully disengaged from interest-based transactions and offers a comprehensive range of services, including retail, SME and corporate banking, treasury operations, and trade finance.
The Bank traces its roots to 2011, when it began operations as a microfinance institution. Its transition into a full-fledged commercial bank marked a shift toward broader financial intermediation while maintaining a strong ethical and inclusion-focused foundation. A significant portion of its shareholding is held by the regional government, reflecting an explicit mandate to expand financial access and inclusion, particularly for underserved communities.
Shabelle Bank’s mission, “Enabling Growth and Enriching Lives,” is reflected in its expanding branch network across Ethiopia and its emphasis on community engagement. Customers are supported through a wide range of digital and physical banking services, including internet and mobile banking, debit cards with SMS alerts, online account opening, 365-day banking, extended service hours, and dedicated banking units for women.
Strong Financial Growth and Capital Expansion
The Bank’s recent financial performance underscores its rapid growth trajectory. Total assets rose by 61 percent to 6.03 billion birr, while customer deposits reached 2.27 billion birr. Capital strengthening has remained a priority. Paid-up capital stood at 2.26 billion birr by the end of the reporting period, with 878.4 million birr mobilized through share sales during the year.
Management views this capital build-up as essential to supporting larger trade finance operations, investment products, and regional partnerships, including those discussed during the Djibouti visit.
Products Grounded in Islamic Finance Principles
Shabelle Bank offers a diversified portfolio of Shari’a-compliant financing and investment products tailored to different customer segments. These include trade-based financing such as Murabaha, Salam, and Istisna‘a; rental-based financing through Ijarah; partnership-based models like Musharaka; and interest-free export financing under Qard Al Hassen.
All products and services operate under strict Shari’a supervision. The Bank is supported by a resident Shari’a board member and an independent Shari’a supervisory board composed of internationally recognized scholars, ensuring compliance, product integrity, and customer confidence.
Looking Ahead
With a stated vision of becoming a leading and trusted Shari’a-compliant banking and microfinance services provider in the Horn of Africa and beyond, Shabelle Bank’s engagement in Djibouti signals a clear regional outlook. By strengthening ties with neighboring financial institutions and business communities, the Bank is positioning itself to facilitate trade, support investment flows, and contribute to a more integrated regional economy.
The Djibouti meetings mark not just a diplomatic courtesy, but a strategic step toward translating Islamic finance principles into practical tools for regional growth and economic resilience.
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