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Ethiopia’s National Bank new regulation met with resistance from oil extraction companies

National Bank of Ethiopia
National Bank of Ethiopia

May 21, 2019

New regulation introduced to regulate expatriate investors engaged in oil extraction in Ethiopia met with resistance from companies in the sector, reported the Ethiopian Reporter on Sunday.

The new regulation requires those who are in the business of oil extraction to open a foreign currency bank account in Ethiopia. If this arrangement was to be implemented, the companies could withdraw money in Ethiopian currency to pay for the operation of their business in Ethiopia. They could also pay for expatriate contractors from their foreign currency account in Ethiopia and pay in foreign currency.

However, the companies opposed the new regulation and have filed their complaints with the Ministry of Mining and Petroleum, according to The Reporter’s report.

Meetings between Nationals Bank executives and Petroleum extraction companies did not bring about any solutions. The companies reportedly told The Ethiopian Reporter that head offices of companies did not accept the new regulation and they found it difficult to carry on with petroleum extraction project.

State minister for the Ministry of Mining and Petroleum, Kuang Tutlam (Ph.D.) declined to remark on the situation.

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