Get-As International Plc, a recognised conglomerate under the family of business magnate Getu Gelete, is positioning itself to become one of the three pioneer non-bank foreign exchange bureaus. Operating under the brand "Dugda Forex Bureau," the company submitted an application to the National Bank of Ethiopia (NBE) a month ago, depositing 45 million Br.

NBE's recent directive, known as the "green book," issued in July, allows non-bank entities to establish independent foreign exchange dealerships. The central bank's policy shift to liberalise the foreign exchange market, long plagued by inefficiencies that have distorted competition, seeks to fight back the parallel forex market. It had offered double the official rate for a dollar, a gap that has been bridged to a single digit after the Birr was floated in July this year.

"We're in this for the business opportunity it offers," said Samuel Getu, son of Getu Gelete and a chief operational officer in Get-As, speaking to Fortune.

The family sees foreign currencies as commodities they trade or assets where profit is made between buying and vending. The spread between buying and selling rates, averaging at 11.2pc last week, has attracted the company to this new line of business.

Get-As International, incorporated in 1994 by two brothers, has a diverse portfolio that is heavily invested in import trade and asset investments. It encompasses six subsidiaries, including the landmark Getu Commercial Centre, Ramada Hotel on Africa Avenue (Bole Road), and Dugda Construction. It also has a feat with horticulture investment, exporting flowers to Europe. The conglomerate is now scouting strategic locations for its forex bureaus, with the bustling Bole area being a primary consideration due to its high business traffic.

"We're strategically selecting areas with enhanced business flow," Samuel said, noting that parking availability and security are integral to their plans to open multiple branches.

Samuel's sister, Eyerusalem Getu, who studied finance in the UK, has been chosen to run the bureau. Seven employees have already been deployed, meeting the central bank's requirement for the disclosure of staff names and designations.

The NBE's green book outlines the roles, responsibilities, and requirements for independent forex bureaus operating without bank affiliations. Applicants are mandated to meet a minimum capital requirement of 15 million Br and provide a security deposit double this amount, which is placed in a blocked, interest-bearing account, at any bank. Eligibility for applying extends to entities owned by Ethiopian nationals, non-resident Ethiopians, and foreign citizens of Ethiopian origin. However, foreign nationals or companies are still barred from entering the sector.

Foreign exchange crunches have stifled fair competition and constrained the domestic economy for decades. Authorities hope adopting a market-determined exchange rate would reduce the distortions, leading to a more favourable balance of payments and increased investment.

The officials believe the new forex market regime is intended to address long-standing market distortions and promote stability and healthy forex flow.

"The bureaus are meant to make the foreign exchange market more competitive," said Vice Governor Fikadu Digafe.

The Vice Governor anticipated that these entities would enhance the foreign exchange market by quickly addressing the needs of customers seeking to buy or sell foreign currency cash notes, contributing to the establishment of a market-driven exchange rate regime.

"We've already given three approvals for licensing last week," he disclosed.

A senior official at the central bank confirmed that evaluation processes are ongoing, with several companies having submitted applications. There are no plans to limit the number of operators in the sector.

"Licensed businesses will be announced soon enough," the official said, declining to disclose applicants' identities.

Emphasising the focus on security and stability, the official disclosed that the 30 million Br financial guarantee is required to ensure compliance and financial eligibility. The deposit will be credited to the bureau after two consecutive years of successful operation without any issues or non-compliance. The NBE will require timely reporting and inspections to secure the bureaus' proper operations.