Ethiopia: The Parliament is poised to ratify a bill aimed at paving the way for the entry of foreign banks in the Ethiopian banking sector. Lawmakers are expected to consider the bill next week.
The draft bill called Banking Business Proclamation was approved by the Ethiopian Federal Cabinet in June 2024. Since then it has been under consideration by the parliamentary committee for Planning, Budget.
Mamo Mehretu, the chief of National Bank of Ethiopia addressing Africa Finance Summit in Casablanca, Morocco announced that the Ethiopian parliament is expected to approve the bill next week for the entry of foreign banks in the Ethiopian banking secotr.
The Ethiopian government intends to issue up to 5 new banking licenses to foreign banks. Foreign companies that have expressed interest in investing in the Ethiopian banking sector include Kenya’s KCB Bank & Standard Bank.
Interestingly, Ethiopian Prime Minister Abiy Ahmed, addressing the parliament recently suggested that Ethiopian local banks should merge to be competitive to the foreign banks. Private banks, a week ago in letter to the Ethiopian National Bank, expressed concern at government’s alleged attempt to merge local banks.
Ethiopian Private Banks Under Pressure to Merge
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