Addis Ababa, Ethiopia – A landmark decision is set to reshape Ethiopia’s financial landscape. The Ethiopian Parliament is poised to ratify a crucial proclamation next week, paving the way for foreign banks to enter the country’s burgeoning market.

Central Bank Governor Mamo Mihretu made the announcement at the Africa Financial Summit (AFIS 2024) in Casablanca, Morocco. He emphasized the transformative potential of this move, stating, “For any bank that wants to explore the largest economy in East Africa, a country of 120 million people is open to business. This is the historic liberalization of the Ethiopian economy to foreign investment.”

The long-awaited Banking Business Proclamation, approved by the cabinet in June 2024, has undergone parliamentary review. Once ratified, it will allow foreign lenders to establish local subsidiaries, acquire stakes in domestic banks, and operate branches. The legislation also permits foreign nationals to hold senior positions within these institutions, while ensuring Ethiopian representation on their boards.   

The Ethiopian government plans to issue up to five new banking licenses to foreign institutions. Several international banks, including Kenya’s KCB Bank and Standard Bank, have expressed keen interest in entering the Ethiopian market.   

Governor Mamo highlighted Ethiopia’s significant economic growth and untapped potential, inviting global investors to capitalize on these opportunities. He presented a positive outlook on the country’s fiscal, monetary, external, and financial sectors during his address at the summit.

The Africa Financial Summit brought together over 1,000 industry leaders to discuss the continent’s economic future and the evolving financial services landscape. Ethiopia’s decision to open its doors to foreign banks is expected to stimulate competition, innovation, and economic growth, positioning the country as a major player in Africa’s financial market.   

소스 및 관련 콘텐츠

[Copyright (c) Global Economic Times. All Rights Reserved.]