A new banking law allowing foreign banks to operate in Ethiopia is expected to significantly boost the country's economic development and its integration into the African Continental Free Trade Area (AfCFTA), according to Ethiopian economic experts.
Dr. Abule Mahari, a senior economist at the Ethiopian Economic Association, stated that the law will play a crucial role in strengthening Ethiopia's economic diplomacy and facilitating its economic growth. The influx of foreign banks is anticipated to bring expertise, technology, and capital, expanding access to financial services, creating jobs, and fostering technological transfer.
Furthermore, it's expected to strengthen economic ties with the countries from which these banks originate, furthering the goals of the AfCFTA. While presenting opportunities, the law also poses challenges to domestic banks, urging them to strengthen their capabilities and leverage the opportunities presented by the capital market to remain competitive, reported ENA.