By Tesfa-Alem Tekle
November 7, 2019
ADDIS ABABA – The House of Peoples’ Representatives on Tuesday lifted a long-standing investment proclamation that bars Ethiopia-born foreign nationals from engaging in financial sector.
During its regular session held today, the house council reviewed a draft proclamation to amend the Insurance Act.
The Council then reviewed the Revenue and Budget Affairs Standing Committee’s report and recommendations on the draft Proclamation to Improve the Finance Act.
Accordingly , the house has approved a new bill that allows foreigners to invest in insurance and microfinance sectors.
The latest move to lift the ban comes only weeks after the Ethiopian government unveiled a new economic reform strategy that aimed to boost investment and to eventually “Propel Ethiopia into becoming the Africa’s icon of prosperity by 2030”
Presenting the resolution to lawmakers,Mrs. Nafekush Dessie, from the Revenue and Finance Affairs Standing Committee, stated that the newly passed bill would allow the Ethiopia-born foreign citizens to invest and participate in insurance and other financial related investment sectors.
She underscored that the new bill will pave a way to quickly solve operational problems which had been difficult to implement under the provisions of the previous proclamation.
The new bill is also believed to resolve complaints which had long been raised by insurance companies.
Questions were raised from members of the house mainly on the significance of lifting the ban.
In response, an explanation was made primary on the major role it will play in tackling illegal money laundering.
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