The Liberalization of the Financial Market and the Service Quality of Commercial Bank of Ethiopia (CBE) rendered to Select International Investors.

Abstract

This study investigates the service quality of BGI Ethiopia, Safaricom Ethiopia, and Moha Soft Drinks S.C. in the context of Ethiopia’s recent policy reforms that opened the banking sector to international investors. The study evaluates whether the Commercial Bank of Ethiopia's (CBE) financial products, digital platforms, transaction speed, and customer service meet the expectations of these multinational corporations. The research employed both descriptive and explanatory research designs alongside a mixed-methods approach. In addition, a stratified random sampling technique was used to select participants. The study utilized questionnaires and interviews to gather data from 106 respondents, selected from a total population of 143 employees and managers within the target organizations. Secondary data were also collected from various sources, including relevant books, journals, reports, newspapers, and related research articles. The collected data were analyzed using descriptive and inferential statistical tools such as frequency and mean. Key findings indicate that all four service quality dimensions tangibility, reliability, responsiveness, and assurance have a significant positive relationship with international investor satisfaction. Reliability was identified as the most influential factor, while gaps were found in responsiveness and digital innovation compared to international standards. The study recommends that the management of CBE prioritize investments in advanced digital infrastructure and implement specialized customer service training for staff to meet the high expectations of global investors. These findings are expected to help policymakers and bank management align CBE’s service quality with global standards to attract and retain foreign direct investment (FDI).