Ethopia: Parliament approves banking proclamation, allowing foreign banks to enter Ethiopia’s financial sector

Addis Abeba – After years of anticipation, lawmakers have approved the long-awaited banking business proclamation, paving the way for foreign banks to enter Ethiopia’s financial sector.

The proclamation allows foreign banks to enter the Ethiopian market by establishing subsidiaries, opening branches or representative offices, or acquiring shares in existing local banks. However, it sets a limit on foreign strategic investors, capping their ownership at 40% in any local bank, while allowing an additional 7%…