Banking Industry Allows Diaspora Investors

Aug 3 , 2019


[ssba-buttons]

Lawmakers legislated a proclamation that allows Ethiopian natives of foreign nationalities to invest in the banking sector. The bill was legislated last week during the emergency parliamentary session that was called after members of parliament went on recess. Beyond buying shares in banks, the new law will enable the Ethiopian diaspora to form new banks, including full-fledged interest-free banks. Two years ago, the central bank ordered all private banks and insurers to return the share certificates of foreign shareholders and auction off the shares for public subscription. The Central Bank also stated that the amount of money offered above par value has to go to the national treasury. Since then, all of the banks and insurance companies have auctioned off the shares owned by Ethiopian-born diaspora.


Radar

Ethiopia, IFAD Sign 69.2m Dollar Deal to Promote Lowland Resilience

The Ethiopian Government and the International Fund for Agricultural Development (IFAD) have signed a 69.2 million dollar grant agreement to implement Phase II of the Lowland Livelihoods Resilience Project (LLRP II). The grant agreement was signed by Finance Minister Ahmed Shide and IFAD President Alvaro Lario. The project targets climate resilience and improved livelihoods for three million people in pastoral and agro-pastoral communities. Co-financed by the World Bank, LLRP II covers eight reg...


Radar

NBE Expands Diaspora Warning Over Unlicensed Remittance Firms

The National Bank of Ethiopia (NBE) has issued an expanded public warning targeting unlicensed remittance operators abroad, flagging four U.S.-based companies it says are undermining Ethiopia's financial regulations. The warning includes newly disclosed findings and specific cases that underscore growing concerns about illicit cross-border financial activity. Remittance flows remain a vital lifeline for Ethiopia's economy, supporting households and supplying critical foreign currency. But as...


Radar

Stricter Standards Unveiled for Public Auditors, Accounting Firms

The Accounting & Auditing Board of Ethiopia (AABE) has issued a new directive aimed at strengthening oversight and professional standards in the accounting and auditing sector. Grounded in the Financial Reporting Proclamation, the directive addresses long-standing regulatory gaps while preparing the sector for the country's emerging capital market. Key provisions introduce stricter licensing standards for public auditors, professionals permitted to audit public interest entities. Applican...