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The Golden Building of the Commercial Bank of Ethiopia

Historical Background: 

The Evolution of Money and Banking in Ethiopia

Before discussing the Golden Building of the Commercial Bank of Ethiopia, it is essential to examine the broader historical development of money and banking in Ethiopia. The country possesses a rich monetary history that reflects its transformation from an ancient empire into a modern state. This history demonstrates a gradual transition from minted gold coins to commodity money (such as salt bars), and eventually to a sophisticated modern and electronic financial system.

1. Ancient Trade and the Origins of Monetary Exchange

By the first millennium BCE, civilizations in the Horn of Africa—particularly around the Kingdom of Dʿmt and later the Aksumite Kingdom—were engaged in long-distance trade. Archaeological findings and inscriptions indicate exchanges of ivory, gold, metals, and luxury goods with South Arabian states such as Saba, Nubia, and other regions.

By the fourth century BCE, the port of Adulis, located on the Red Sea (historically referred to as the Eritrean Sea), had become a major commercial gateway linking the Mediterranean world (Greeks and Romans) with the East (India and China). Some ancient writers regarded Aksum as one of the great powers of the ancient world, alongside Rome, Persia, and China.

Adulis emerged as a significant maritime entrepôt by the first century CE, connecting Ethiopia to the broader Indian Ocean trading system. The Greek travel guide The Periplus of the Erythraean Sea, written in the first century CE by an anonymous Greek merchant, describes Adulis as a vibrant trading port inhabited by Greco-Roman, Arab, Indian, and African merchants. Trade involved ivory, tortoiseshell, gold, spices, textiles, and other luxury commodities.

Although modern banking institutions did not exist during this period, commercial transactions utilized commodity exchange, coinage, credit arrangements, and contractual agreements.

2. The Aksumite Coinage System

The Aksumite Kingdom was the first African state south of the Sahara to mint its own gold, silver, and bronze coins. This innovation significantly reduced reliance on barter and introduced a standardized monetary system that facilitated domestic and international trade. Archaeological evidence indicates that Aksumite coins have been discovered as far as India and China, confirming Ethiopia’s intercontinental commercial reach.

These coins often bore Greek inscriptions, as Greek functioned as an international commercial language of the time. The use of Greek facilitated trade relations with Greek, Roman, and Persian merchants.

3. Decline and the Era of Commodity Money

Following the destruction of the port of Adulis in 636 CE during early Islamic expansions and subsequent internal upheavals, including the traditions surrounding Queen Yodit (Gudit), the Aksumite Empire declined. Political power shifted to the Zagwe dynasty. This period is often described as a transitional or “dark” age in economic terms.

During this time, trade reverted largely to barter and commodity money, including amole (salt bars), gold dust, cloth, and silk. By the eighteenth century, renewed international contacts led to the introduction of the Maria Theresa Thaler, an Austrian silver coin. From the late eighteenth century until the early twentieth century, the Maria Theresa Thaler dominated Ethiopian trade.

4. Monetary Modernization under Menelik II (1889–1913)

The reign of Emperor Menelik II marked a decisive turning point in Ethiopia’s monetary history. From 1889 onward, Ethiopia began transitioning from a commodity-based and foreign-coin system toward a centralized national monetary structure.

Before reform, circulating media of exchange included:

Maria Theresa Thaler

Salt bars (amole)

Gold dust and bullion

Various foreign coins from Ottoman, Indian, and European trade networks

The founding of Addis Ababa in 1886 and the victory at the Battle of Adwa in 1896 increased Ethiopia’s international prestige and diplomatic engagement. Consequently, Menelik II pursued monetary sovereignty and economic centralization.

Between 1893 and 1894, Ethiopia introduced its first modern national coinage, known as the Menelik Talari. Initially minted in Paris, the coin was modeled after the Maria Theresa Thaler to ensure public acceptance. Due to its silver content, it became known as the “birr,” a term still used for Ethiopian currency today.

Denominations included half talari, quarter talari, and copper coins for small transactions. The coins bore the portrait of Menelik II, Amharic inscriptions, and the Lion of Judah emblem—symbolizing political and economic sovereignty.

To reinforce monetary independence, Menelik II imported minting machinery around 1897–1898 and began domestic coin production, marking the establishment of a state-controlled monetary infrastructure.

5. The Introduction of Modern Banking (1905–1931)

Urbanization in Addis Ababa and expanding foreign trade created demand for structured financial institutions. In cooperation with the National Bank of Egypt, the Bank of Abyssinia was established in Addis Ababa in 1905 and inaugurated on February 16, 1906, by Emperor Menelik II. It became Ethiopia’s first modern bank, providing deposit, loan, and banknote issuance services.

Shares were sold domestically and internationally, and branches were opened in Harar, Dire Dawa, Gore, and Djibouti.

Under Lij Iyasu (1913–1916), political instability limited economic expansion. During Empress Zewditu’s reign, no major banking reforms were introduced, but the foundations laid by Menelik II continued.

In 1931, Emperor Haile Selassie I nationalized the Bank of Abyssinia and renamed it the Bank of Ethiopia, making it Africa’s first nationally owned bank performing both central and commercial banking functions.

6. The Italian Occupation (1936–1941)

During the Italian occupation under Africa Orientale Italiana (AOI), several Italian banks established branches in Ethiopia, including:

Banco di Roma

Banca Nazionale del Lavoro

Banco di Napoli

Banco di Sicilia

The Italian lire replaced Ethiopian currency, and banking operations were controlled from Rome. Credit access was limited primarily to Italians. Following Italy’s defeat in 1941, these banks withdrew from Ethiopia.

7. Reconstruction and Institutional Reform (1943–1974)

After liberation, the British Military Administration temporarily introduced the East African shilling. On April 15, 1943, Emperor Haile Selassie I established the State Bank of Ethiopia, combining central and commercial functions.

In 1963, banking reform separated central and commercial banking:

National Bank of Ethiopia (NBE): central banking authority

Commercial Bank of Ethiopia (CBE): main commercial bank

Specialized banks such as 

Agricultural and IndustrialDevelopment Bank

Housing and Savings Bank were also created.

8. The Derg Socialist Era (1974–1991)

Following the 1974 revolution, the Derg nationalized all financial institutions. The banking system became fully state-owned, with centralized credit allocation and fixed interest rates. The Commercial Bank of Ethiopia dominated the sector, serving primarily public enterprises. While financial stability was maintained, innovation and competition were limited.

9. Market Liberalization and Modern Banking (1991–Present)

After 1991, Ethiopia adopted a market-oriented economic policy. The Monetary and Banking Proclamation No. 83/1994 and Licensing and Supervision of Banking Business Proclamation No. 84/1994 restructured the financial sector.

Private banks were permitted, and Awash International Bank became the first private bank in 1994. Subsequent decades witnessed rapid expansion, regional branch growth, ATM services, electronic banking, and digital financial transformation.

The Government of Ethiopia recently made  financial reforms as part of the country’s Home-Grown Economic Reform Agenda, which was especially intensified since 2024. The aim of  these reforms focused in stabilizing  the economy, improving the financial sector, and attracting investment.

To implement the reform, the government introduced a comprehensive macroeconomic and financial reform program to address major economic problems. 

The reform includes changes in monetary policy, banking regulation, exchange-rate management, and fiscal policy. 

One important measure is the transition toward a market-determined exchange rate, which aims to reduce foreign-exchange shortages and improve international trade and investment. The reform also strengthens monetary policy, and encourages savings and investment. 

The reforms are supported by international institutions such as the International Monetary Fund (IMF) through a multi-year financial program designed to restore macroeconomic stability and support sustainable economic growth. 

Summary

In summary, Ethiopia’s recent financial reform aims to stabilize the economy, modernize the financial system, improve foreign-exchange management, and encourage private-sector-led growth. These measures are expected to strengthen the country’s economic resilience and promote long-term development.

History of the Golden Building

 (Old CBE Head Office)

Background of the Bank

The Commercial Bank of Ethiopia (CBE) traces its roots to the State Bank of Ethiopia, established by government proclamation in 1942 after World War II, serving both as central bank and principal commercial bank of the country.

 The Comercial Bank of Ethiopia (CBE)  was officially inaugerated on November 15, 1965 by Emperor Haile Selassie I. This building was  widely known by residents of the city as the “Golden Building.” After its inaugeration, the building became one of the architectural icons of the city and a distinctive architectural landmarks in Ethiopian banking history. Its significance: was a symbol of Ethiopia's mid-century modernization.

Design & Construction

The Architect

The building is a masterpiece of Modernist architecture adapted to the Ethiopian context. The Architect of the building was Henri Chomette (a French architect and pupil of the 20th-century master, Le Corbusier). He was working  in Ethiopia in the 1950s and 1960s, particularly during the reign of Emperor Haile Selassie. He is responsible for several other notable mid-century modern buildings of Addis Ababa (such as the nearby National Theatre and the old Ethiopian Electric Light and Power Authority headquarters). 

The Contractor

The construction of this modern building required a foreign contractor with expertise in reinforced concrete and modern cladding techniques.

Contractor: Impresa Ing. G. Puglie

This was an Italian construction firm. Following the end of the Italian East African empire and the subsequent period, many Italian engineers, architects, and construction companies remained in or returned to Ethiopia to participate in the booming construction industry under the Imperial government's modernization plans. They brought with them the necessary post-war construction technology.

Detailed Design & Materials

​The building is a masterpiece of Mid-Century Modernist architecture.  

Structural Frame: 

It is Reinforced Cement Concrete (RCC) . The columns, beams, and the central core were cast-in-situ using locally sourced aggregates and cement. 

The "Golden" Cladding: 

The "Golden" Cladding: The exterior is finished with Golden-Yellow Vitreous Mosaic Tiles. These are small, square tiles (likely 2cm x 2cm or similar) made of glass or ceramic with a colored finish that is fused at high temperatures. This makes them waterproof, fade-resistant, and easy to clean. They were likely imported from Italy (a major producer of mosaic tiles at the time) or specifically manufactured for the project. Besides it, mix of high-quality Italian marble, polished granite, and specialized glass are the features of the exterior facade.​

Etching 

One of its most famous features is the artistic etching and relief work on the walls.  The wooden wall panels (often made of Ethiopian Highland Tradition) were etched with Ge'ez inscriptions and motifs of Ethiopian history. 

Flooring

Public Areas (Banking Hall)

This is the ground floor which was designed for the public, but with imperial grandeur. It is public interface area or bankibg hall. It is also called as Terrazzo flooring, which was said as extremely popular desiign  in Ethiopia in the 1960s,   the floor was constructed with chips of marble or granite set in cement. It is polished to a smooth surface. It was likely a light color (white or cream) with darker chips.

The floor has the following rooms or sections:-

Large, open banking lobby for customers

Teller counters and customer service

Reception and waiting areas.

This circular layout was symbolic and practical, creating a distinctive public space for bank transactions. 

Upper Floors: Likely a combination of terrazzo in corridors and timber flooring or vinyl tiles in private offices.

The floor just as the ground floor it has:

Large, open banking lobby for customers

Teller counters and customer service

Reception and waiting areas

Possibly meeting rooms accessible from the main entrance

​Windows & Doors

The Windows: 

Floor-to-ceiling glass panels were used to create "transparency"—a symbolic banking value—letting in natural light that reflects off the polished marble floors which is said as the characteristic of Chomette's style

The Doors:

They are the main entrance traditionally featured heavy, bronze or brass-clad doors with intricate geometric patterns, signifying security and wealth.

The Basement & The Vault (The Strong Room)

The basement:

The building has large basement facilities, used for:

Support functions like storage and technical spaces

Room for building equipment. 

It is the house for vaults, utility rooms, archives, and services.

The vault:

This is the most critical part of the building. In bank architecture, the vault is not just a room; it is a fortress within a building. In the 1960s, this vault was considered the most secure "fortress" in East Africa.

Construction of the Basement:

Addis Ababa has a high water table and the site is near the old river courses. Because ofbthis fact, , the basement construction would have involved significant waterproofing. This meant that"tanking" system was likely used. This involves laying a membrane (often several layers of bitumen and hessian fabric) beneath the concrete slab and on the external walls of the basement to prevent groundwater ingress.

Basement Walls of the vaultb is extremely thick (likely 40-60cm) reinforced concrete retaining walls designed to withstand the lateral pressure of the soil and water outside.

The Vault (Strong Room) Materials:

It is encased in a massive "box" of high-density reinforced concrete, several feet thick, designed to withstand both explosions and seismic activity.

​The Door: It features a world-class Chubb or Fichet-style heavy steel door, often finished in polished chrome or brass, which contributed to the "golden" prestigious feel.

​Security Layers: It wasn't just one room; it was a series of compartments. The outer layer held safety deposit boxes for the public, while the inner "sanctum" held the national currency reserves and gold bullion.

Conclusion

The architectural and structural design of the Golden Building (Commercial Bank of Ethiopia), constructed in 1965 for the Commercial Bank of Ethiopia, represents an important stage in the modernization of Ethiopian urban architecture during the mid-twentieth century. Architecturally, the building reflects the principles of modernist design that were becoming influential in Addis Ababa at the time, characterized by functional planning, geometric simplicity, and the use of modern construction materials. The façade design, with its balanced proportions and repetitive structural rhythm, emphasizes clarity, order, and institutional dignity appropriate for a national financial institution.

Structurally, the building demonstrates the adoption of reinforced concrete frame construction, which allowed for greater structural stability, larger interior spaces, and flexibility in the internal arrangement of banking halls, offices, and service areas. This structural system also enabled the building to achieve a vertical and monumental presence within the city’s commercial district.

Overall, the Golden Building stands as a significant architectural landmark that illustrates the integration of modern architectural aesthetics with practical structural engineering, reflecting Ethiopia’s broader economic and institutional development during the 1960s.

Bibliography

Bahru Zewde. A History of Modern Ethiopia, 1855–1991. Addis Ababa University Press, 2001.

Pankhurst, Richard. An Introduction to the Economic History of Ethiopia. Lalibela House, 1968.

Pankhurst, Richard. The Ethiopian Borderlands. Red Sea Press, 1997.

National Bank of Ethiopia. History of Banking in Ethiopia. Official publications.

Marcus, Harold G. A History of Ethiopia. University of California Press, 1994.

Munro-Hay, Stuart. Aksum: An African Civilization of Late Antiquity. Edinburgh University Press, 1991.

The Periplus of the Erythraean Sea. Translated by E.H. Warmington. Harvard University Press