Foreign Banks Flock To Ethiopia After Banking Sector Liberalization

1 Mon Ago 347
Foreign Banks Flock To Ethiopia After Banking Sector Liberalization
Credit APA

Ethiopia's recent approval of a bill allowing foreign bank ownership, partnerships, and branch openings has sparked significant interest from lenders across Kenya, Morocco, and the UAE.

This move, seen as a key step in Ethiopia's broader economic reform agenda, promises to reshape the country's financial landscape, injecting capital, innovation, and competition into the economy. The liberalization of Ethiopia's banking sector is part of a wider set of reforms supported by a $3.4 billion International Monetary Fund (IMF) bailout, approved in July.

NBE Governor Mamo Meheretu has emphasized the importance of maintaining a tight monetary policy to protect the birr's value and contain inflation.  According to APA, the NBE's foreign exchange reserves have surged by 152 percent, and remittances through the Commercial Bank of Ethiopia have increased by 60 percent year-on-year, indicating a healthier financial system better equipped to support Ethiopia's ambitious economic goals.


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