Eritrea is the one country in this series where open banking is not just distant but structurally ruled out. The banking system is state-controlled, private banks are not permitted, and basic electronic services like ATMs and online banking are largely absent. There is no path to open banking here under the current structure.
Eritrea’s financial sector is small and almost entirely state-owned, built around a handful of government banks. Private commercial banks are not permitted to operate, which removes the competition and variety of institutions that open banking is designed to connect. The economy is heavily cash-based, and formal financial inclusion is very low.
Open banking assumes several things that Eritrea does not have: multiple competing banks and fintechs, consumer-facing digital services, and a regulatory appetite for data sharing. With no private banks, little in the way of ATMs or online banking at the main institutions, and tight state control over finance, the basic preconditions are missing. This is not a question of timing or a roadmap running late. The current structure simply rules it out.
For Eritrea, the meaningful steps would come long before open banking: allowing a broader banking sector, building basic electronic payment services, and expanding access to formal accounts. Until the structure of the financial system changes, open banking is not a realistic prospect, and it is more honest to say so plainly than to imply it is on the way.
Important Links
Open Banking Nigeria (Open Technology Foundation) is a non-profit backed by a group of industry experts across banking, fintech, risk management, and more to drive and launch the open banking standard in Nigeria.
