Preparations underway to ensure entry of foreign financial institutions in Ethiopia: NBE

Addis Ababa, August 24, 2022 (FBC) – National Bank of Ethiopia announced that preparations are being made to enable foreign financial institutions to enter the country.

Prime Minister Abiy Ahmed has recently confirmed that a policy has been prepared to allow foreign financial institutions to enter the country.

Frazer Ayalew, Supervision Director at National Bank of Ethiopia, has told Fana Broadcasting Corporation that preparations are being made to allow foreign financial institutions to enter the country in line with international experience. He added that this preparation will enable to introduce advanced changes in the law and regulatory system.

Solomon Damtew, Acting Director of National Bank’s Payment Settlement Division, explained that such new procedures have greatly contributed to modernizing the payment system.

The Bank has stated that allowing foreign financial institutions to commence their service in the country will help to attract investment, increase foreign exchange, provide sufficient credit in any sector of the country, make the banking system more advanced and competitive; make access reliable.

The banking sector has reportedly been growing in the last four years and the number of local banks has increased from 18 to 30; and due to revision of financial policies and procedures by the National Bank, the number of micro-finance institutions has reached as investment institutions stand at 18, according to the Bank.