The National Bank of Ethiopia (NBE) says foreign investors can now fully repatriate dividends and other eligible payments, removing a long-standing constraint on Foreign Direct Investment (FDI).

Speaking at a recent parliamentary session, NBE Governor Eyob Tekalegn said the repatriation challenge, historically linked to foreign exchange shortages and restrictive rules, has been effectively resolved following wide-ranging economic reforms, including a comprehensive overhaul of the foreign exchange regime introduced in mid 2024. He noted that investors had repeatedly raised concerns about Ethiopia’s FX policy, arguing that the previous environment was not aligned with their operational needs.

Eyob said the shift was already evident in market feedback. During a recent engagement with the American Chamber of Commerce in Ethiopia, he asked whether any investor was still facing repatriation difficulties, and none reported current obstacles. He added that both the central bank and commercial banks no longer view repatriation as a barrier, citing improved confidence under the new FX framework.

He also reported strengthened external accounts, including an improved balance of payments and a sharply narrowed trade deficit. New foreign investment registrations have reached USD 2.4 billion, up 26 percent year-on-year.

Source: Capital Ethiopia Newspaper