Fed Green Lights Foreign Bank Entry


Fed Green Lights Foreign Bank Entry

Following years of speculation, the federal government has decided to allow foreign investors into the financial sector. Last week, the Council of Ministers approved a policy to allow foreign banks to operate in the country. It is the first step in permitting foreign involvement in the financial sector since the Dergue regime forced all foreign banks to cease operations nearly five decades ago. Regulators have been putting measures in place to strengthen domestic banks, whose numbers have swelled to nearly two dozen over the past year. This includes raising the minimum capital threshold by 10 fold to five billion Birr. Some private banks are in the clear. Awash Bank leads its peers with 11 billion Br in subscribed capital. Dashen and the Bank of Abyssinia follow with close to seven billion Birr each. Two months ago, Amhara Bank joined the industry with a cool six billion Birr in paid-up capital, the first bank to achieve such a monumental feat in the first year of operation.

[ssba-buttons]

Radar

Korenti, Agelegel Microfinance Ink EV Financing Deal

Korenti Auto Trading PLC has signed a strategic agreement with Agelegel Microfinance to provide accessible financing options for electric vehicle (EV) buyers. The partnership seeks to ease EV ownership by offering fair pricing and loan packages with affordable rates. The initiative supports Ethiopia's push for clean transport and aligns with national sustainability goals. Korenti's managing director said the move reflects the company's commitment to expanding electric mobility. Customers can now...


Radar

NBE Leads Week-Long Bank Supervision Application Forum

The National Bank of Ethiopia (NBE) is hosting a week-long Bank Supervision Application (BSA) User Group meeting that began on July 7, 2025. The BSA system, developed by a pan-African consortium of central banks including the NBE, automates supervisory work for financial regulators. NBE will take over the rotating BSA chairmanship in September. Opening the session, Frezer Ayalew, Director of Bank Supervision, stressed the need for modern tools to handle growing regulatory demands amid cyberse...


Radar

Six Fuel Companies Banned, Seven Warned, Authority Noted Illicit Activity

The Ethiopian Petroleum & Energy Authority has taken disciplinary action against 13 fuel distribution companies for illegally trading 2.8 million litres of fuel outside the digital system in the past two months. Six firms face a one-month suspension from the fuel import and trading market, while seven others received final warnings and must rectify their operations within a month. Director General Destawe Mekwanant (PhD) said the companies failed to monitor fuel stations and ensure proper...