Addis Ababa, Ethiopia –
Ethiopia has officially begun accepting license applications from international banks and investors, marking a major step in the country’s broader push to liberalize its financial sector and attract foreign capital.
The move is part of an ambitious economic reform program backed by a $3.4 billion agreement with the International Monetary Fund (IMF). The reforms also include floating the Ethiopian birr and restructuring $8.4 billion in foreign debt, signaling a commitment to macroeconomic stability.
In December 2024, Ethiopia’s government passed a law allowing foreign banks to establish subsidiaries, branches, or representative offices, and to acquire equity stakes in local financial institutions.
However, a newly issued directive places a 40% cap on foreign ownership in Ethiopian banks for strategic investors, a move designed to balance foreign participation with national financial sovereignty.
Ethiopian officials view the policy shift as a turning point in economic openness, aiming to boost investment, financial inclusion, and global integration.
