1734428656995.pdf
Today, the Ethiopian parliament has approved a draft "Banking Business Proclamation," marking a major shift in the country’s financial landscape by allowing foreign banks to establish operations in Ethiopia.
- This legislation offers various avenues for foreign banks to enter the market, such as creating subsidiaries, opening branches, or acquiring shares in local banks. However, to protect local interests, strict regulations have been implemented, mandating that foreign ownership in local banks cannot exceed 49% of the subscribed shares, ensuring that 51% remains under Ethiopian control.
- Furthermore, the new law allows foreign banks to employ foreign nationals as senior executives but also emphasises the need for Ethiopian representation on the boards of these banks to maintain local oversight. The endorsement of this proclamation follows six months of deliberation after the Council of Ministers passed an initial draft.
የህዝብ ተወካዮች ምክር ቤት በኢትዮጵያ የውጭ ባንኮች እንዲሳተፉ የሚፈቅደውን የባንክ ስራ ረቂቅ አዋጅ ዛሬ አጽድቋል፡፡
- This legislation offers various avenues for foreign banks to enter the market, such as creating subsidiaries, opening branches, or acquiring shares in local banks. However, to protect local interests, strict regulations have been implemented, mandating that foreign ownership in local banks cannot exceed 49% of the subscribed shares, ensuring that 51% remains under Ethiopian control.
- Furthermore, the new law allows foreign banks to employ foreign nationals as senior executives but also emphasises the need for Ethiopian representation on the boards of these banks to maintain local oversight. The endorsement of this proclamation follows six months of deliberation after the Council of Ministers passed an initial draft.