Economy
Two Foreign Banks Apply to Enter Ethiopia Through Greenfield Investments
Capital Ethiopia · 3 hours ago · Read the Full Story on Capital Ethiopia
AI SUMMARY
The National Bank of Ethiopia confirmed that two foreign banking institutions have formally applied to enter the domestic market through greenfield investments.
- Two foreign banking institutions have formally applied to establish new operations in Ethiopia through greenfield investments.
- The National Bank of Ethiopia is processing the applications from the two foreign bank applicants.
- Ethiopia's commercial banking sector had been closed to foreign participation since 1975.
- Parliament ratified the Banking Business Proclamation No. 1360/2024 in December 2024, ending the ban on foreign participation.
- The new law allows foreign banks to establish subsidiaries, open branches, acquire shares in local banks, or open representative offices.
- Strategic foreign investors are permitted to hold up to 40% of the subscribed capital of a local bank.
- Foreign legal entities are capped at 10% ownership, while foreign individuals may hold between 7% and 10%.
- Total foreign ownership in a single Ethiopian bank cannot exceed 49%.
- Foreign banks establishing subsidiaries or branches must meet a minimum paid-up capital requirement of 5 billion birr.
- Foreign-owned branches must have at least nine board members, with at least one-third being non-executive Ethiopian citizens.
- Nigeria's United Capital Plc became the first foreign institution to receive an investment-banking licence from the Ethiopian Capital Market Authority in June 2026.
Related
Addis Ababa Revenue Bureau Issues Directive for Taxpayers Without Accounting Records
TIKVAH Ethiopia · 17 hours ago
High Digital Transaction Costs and Fraud Gaps Threaten Ethiopia’s Financial Inclusion Goals
The Reporter · 23 hours ago
Policy and Data Credibility Deficit Threatens Inflation Fight: EEA
The Reporter · 24 hours ago
Ethiopian Labor Sustains the Mandera Triangle Economy Amid Exile
The Reporter · yesterday