The National Bank of Ethiopia (NBE) has announced that it will grant licenses to five foreign banks to operate in Ethiopia. The aim is to bring foreign banks into the country while also supporting the development of local financial institutions.

The Deputy Governor of the Financial Institutions Sector of the National Bank of Ethiopia, Mr. Solomon Desta stated that local banks should review their strategies and make preparations to strengthen their institutions. They are also expected to allocate a budget for capacity building, work on coordinating with foreign institutions, and consider how to share capital, knowledge, and technology. In addition, financial institutions should increase their capital and revise their strategies to carefully handle all situations that may arise.

Foreign banks must also work on building the capacity of local financial institutions so as not to drive them out of the market. This means sharing knowledge and technology, and helping local banks to improve their operations.

Source: Addis Zemen