 on Wednesday has issued a landmark directive that opens the country’s banking sector to foreign investment...){kind=link}
By: Getahun Tsegaye
Staff Reporter
Addis Ababa, Ethiopia – The National Bank of Ethiopia (NBE) on Wednesday has issued a landmark directive that opens the country’s banking sector to foreign investment, allowing global financial institutions to participate for the first time.
The new regulation, officially known as “Directive No. SBB/94/2025: Requirements for Licensing and Renewal of Banking Business and Representative Office Directive,” comes after a year of “extensive consultations” with various stakeholders. “Their inputs have been given due consideration,” stated the NBE, underscoring the collaborative effort behind this significant policy shift. This directive builds upon the recently enacted Banking Business Proclamation, which laid the legislative groundwork for these changes.
For the first time, foreign investors, including international banks and other strategic investors, will be able to participate directly in Ethiopia’s banking system. The directive outlines multiple avenues for entry, allowing foreign entities to establish “subsidiaries, foreign bank branches, or Representative Offices,” among other options. Notably, the NBE will now also oversee the licensing and supervision of Representative Offices, a responsibility previously handled elsewhere.
The NBE anticipates that this opening will bring a wave of positive changes to the sector. “We expect that the opening up of the sector to foreign entrants will help bring increased capital, competition, service delivery, efficiency, and inclusivity to the sector,” the NBE remarked, adding that these benefits “should deepen Ethiopia’s financial sector and contribute to improved growth.”
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DATA is the “GOLD MINE” of the future!
As the so called “Fourth Industrial Revolution” (IR 4.0) unravels, every possible steps must be taken to protect and keep the nation’s & population private & financial DATA, therefore all-DATA must be kept within the country, (2) Ethiopian banking and other law takes precedence over all other Banking laws regardless of origin. (3) data breach /leak outside the country must carry serious penalties up to revocation of all licenses.
These ‘DATA’ protection rules/legislation must apply to all foreign based businesses that have received licenses to operate in the country… If this was NOT done in the past, corrections must be made and this new legislation must apply to all old and new licenses.
It must include all the foreign tech firms applications (FB/Meta, X/Tweeter, YT, TikTok…etc.) & Crypto mining operations and others.
Be well.