Thu. May 19th, 2022

Ethiopia moves to allow entry of Kenyan banks

Ethiopia has constituted a committee to liberalise the banking sector, taking a major step in opening the door for Kenyan lenders such as KCB Group to set up operations in the populous nation.

The committee has already started work to amend Ethiopia’s half-a-century old financial code, local reports said meaning the long-awaited easing of restrictions on foreign banks making investments in Ethiopia has inched closer.

A new code guiding the country’s banking sector will allow the opening up of the financial sector, the head of the committee was quoted saying. Business Daily learnt that the committee’s work plan states the first draft of the financial services code must be ready by December 2022.

Led by Alemante Agidew, Legal and Justice Service Division State Minister at the Ethiopian Ministry of Justice, the committee convened at Hyatt Regency Hotel on March 17, 2022, in Addis.

“The new code is necessitated to cope with the new direction the economy is going in. This includes a capital market and opening up of the economy for foreign players,” Mr Alemante was quoted saying by Ethiopian publication The Reporter.

The new Financial Service Code will determine engagement modalities of foreign banks in Ethiopia’s financial industry.

Summary

  • Led by Alemante Agidew, Legal and Justice Service Division State Minister at the Ethiopian Ministry of Justice, the committee convened at Hyatt Regency Hotel on March 17, 2022, in Addis.
  • The new Financial Service Code will determine engagement modalities of foreign banks in Ethiopia’s financial industry.
  • The latest development looks set to excite top Kenyan banks such as Equity Group and KCB Group which have expressed ambitions to run fully-fledged operations in the neighbouring country.

The East African

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By Chala Dandessa

Name: Chala Dandessa. I was born in West Shewa Zone, Chobi District of Oromia Region, Ethiopia in 1989. Founder of Ethiopians Today Website Currently I am Lecturer at Jimma Teachers College. Peace and Unity for our country! https://ethiopianstoday.com

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