The Governor of the National Bank of Ethiopia, Mamo Mihretu, has stated that the bank is working hard to finalize a regulatory framework that will allow foreign banks to operate in Ethiopia. This is part of an effort to deepen financial intermediation, regulate the financial sector, and accelerate digitization efforts.

The Bank is also finalizing a three-year reform program that aims to address inflation and external stability issues. Additionally, Ethiopia is launching a comprehensive economic reform program to achieve macroeconomic stability, balance the economy, and support the productive sector. The Governor emphasized the importance of partnerships with organizations like the World Bank to support these efforts.

The National Bank of Ethiopia (NBE) announced in November last year that the banking sector would be opened to foreign banks on a gradual process as a mechanism to cope with the possible challenges the opening of the financial sector would bring. Initially, licenses will be given to banks that want to open a branch office or a subsidiary or buy 40% stake in local banks.

Foreign banks will be allowed to open limited branches. NBE is working on capacity building, training, strengthening cyber security, financial stability frameworks, and supervision and monitoring mechanisms.

Source: Ethiopian News Agency

Additional source: 2Merkato Archives