Ethiopia Reforms Financial Sector

Ethiopia has this week passed legislation designed to open up the financial sector. The changes will enable citizens in the diaspora or with dual nationality to buy shares in local banks and start lending businesses. 

Speaking on the reforms the chair of the Revenues, Budget and Finance Committee of Parliament Lemlem Hadgo is quoted as stating, “The law will enable the Ethiopian born diaspora to take part in the economic growth of the country.”

The banking sector has been closed to foreign investment and remains dominated by Awash Bank and Dashen.

The move is part of efforts by President Abiy Ahmed to liberalise the economy and attract increased foreign investment.