September 3, 2022

Ethiopia opens up banking sector to foreign investors

City: Addis AbabaNews

Ethiopia’s Banking Business Proclamation prohibits foreigners from fully or partially owning or opening banks in the country

Avatar: Abiy Solomon
By Abiy Solomon

Abiy is Editor-in-Chief of Addis Zeybe. He has 12 years of experience in the fields of journalism, visual communication, and online media. Abiy has worked for The Daily Monitor, The Reporter, Fortune, and BBC Media Action in a variety of editorial positions.

Ethiopia opens up banking sector to foreign investors
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Credit: Office of the Prime Minister

The Ethiopian Council of Ministers approved the draft policy on opening up the banking sector to foreign investors and decided it to be operational. 

It is indicated that opening up the sector to foreign investors will enable supporting the sector’s service with technology, enhance the networking of the country’s economy with the international market, and strengthen the competitiveness and efficiency of the finance sector

A statement from the Prime Minister’s Office stated that the Council approved the policy after having detailed deliberation and decided on its implementation including further inputs. 

Recent reports indicated that there were efforts of revising the banking regulation with the supposition of allowing foreign investors in the sector. 

Yinager Dessie, Governor of the National Bank of Ethiopia was quoted by The Reporter on May 19, saying, “One of the legal revisions we are doing currently is revising the Banking Business Proclamation. The existing proclamation does not allow foreign banks to come and operate in Ethiopia”.

Ethiopia’s Banking Business Proclamation was last amended in 2019 and prohibits foreigners from fully or partially owning or opening banks in the country.