INSUBCONTINENT EXCLUSIVE:
options.The banking sector, currently with 29 players, is dominated by the state-owned Commercial Bank of Ethiopia.Despite this, the
government is keen to infuse foreign competition
However, it also aims to protect local banks by capping foreign ownership.Foreign investors can own up to 30% of a local bank, with an
additional 10% available to another overseas buyer.The remaining 60% stays with local shareholders
National Bank Governor Mamo Mihretu assures that legal preparations will be complete by July 2024.Ethiopia Welcomes Foreign Banks with
global interest.Experiences in the telecom sector urge cautionHowever, recent experiences in the telecom sector urge caution.Withdrawals by
foreign companies like Orange and challenges faced by Ethio Lease highlight the complexities of foreign investment in Ethiopia.Local banking
supports foreign investment but worries about rural areas being overlooked.Foreign investment brings needed cash and expertise to Ethiopian
This approach aims to balance new opportunities with the protection and growth of local banks.As Ethiopia transitions, managing this balance
is key to its economic advancement.
