The Council of Ministers has approved Saturday a new policy that will open Ethiopia’s banking sector for foreign firms’ competition.
The Council has approved the policy on its 13th regular session held at the Office of the Prime Minister.
Ethiopia has closed its doors for foreign banks entry for a little less than 30 years despite the repeated efforts by those multinational companies to join the country’s market.
In a statement issued by the council on Saturday it was disclosed that opening of banking sector for foreign investors will strengthen linkage of Ethiopia’s economy with the rest of the world, and will brought new technologies and expertise into the banking sector.
“The opening of banking industry for foreign investors is also expected to give a remedy to the foreign currency crunch in Ethiopia, and access to finance,” the statement added.
Prime Minister Abiy Ahmed (PhD) repeatedly announced on his earlier addresses to the House of People’s Representatives that the sector will be opened for foreign firms.
Meanwhile, Yinager Dessie (PhD), Governor of the National Bank of Ethiopia stressed earlier that the local banks should be ready for inevitable competition from foreign banks.