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.
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