Former National Bank of Ethiopia Governor Passes Away
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Leikun Berhanu, a prominent architect of Ethiopia’s modern banking sector and former Governor of the National Bank of Ethiopia, has passed away.
Berhanu’s career spanned several decades, during which he played a central role in shaping the country’s financial institutions through dramatic political and economic shifts, from monarchy to socialism, and later to market reforms.
Key Figure in Ethiopia’s Banking System
Leikun began his banking career in the 1970s as president of the Commercial Bank of Ethiopia (CBE), the country’s largest and most influential bank.
During a period marked by the fall of Emperor Haile Selassie and the rise of the Derg regime, he maintained the stability of the state-owned bank and facilitated its participation in both domestic and international finance, even amid sweeping nationalization policies.
His leadership at CBE came at a time of extreme political and economic upheaval. He navigated the institution through these uncertainties, overseeing government and commercial transactions during the socialist period, and preserving essential banking functions under state control.
National Bank of Ethiopia Governorship (1991–1995)
Following the collapse of the Derg in 1991, Leikun was appointed Governor of the National Bank of Ethiopia (NBE), the central bank, during the early years of the Ethiopian People’s Revolutionary Democratic Front (EPRDF) administration.
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His tenure came at a critical time as the country shifted from a centrally planned economy to a market-based system. During this period, he introduced pivotal monetary policy reforms to address inflation and stabilize the Ethiopian birr, including the controversial 1994 devaluation aimed at boosting exports.
He worked to re-establish public confidence in the banking sector, implement modern regulatory frameworks, and improve foreign exchange management. His contributions were crucial in guiding Ethiopia’s reintegration into global financial markets at a time of limited reserves and double-digit inflation.
Champion of Private Banking and Reform
In the early 2000s, Leikun assumed leadership at Awash International Bank (AIB), one of the first private banks to emerge after Ethiopia liberalized its banking sector. As president, he expanded AIB’s branch network and deposit base, making it a formidable competitor in a market traditionally dominated by state-owned institutions.
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In 2002, he was elected president of the Ethiopian Bankers’ Association, where he advocated for the development of the private banking sector, financial inclusion, and the adoption of modern banking services such as foreign currency accounts and letters of credit.
Later Years and Controversy
Despite his decades-long contributions, Leikun’s later career was marred by controversy. In 2010, he was removed from his role at Awash Bank following allegations of foreign currency mismanagement.
A court later convicted him and several former officials for irregularities related to letters of credit and currency allocation, an issue that remains sensitive in Ethiopia due to persistent foreign exchange shortages.
While the conviction raised questions and divided opinion, many in Ethiopia’s financial sector continued to recognize Leikun’s broader contributions to institutional development. His role in pioneering modern banking frameworks and mentoring a generation of professionals remains part of his legacy.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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