About the policy
The "Banking (Amendment) Proclamation No. 1159/2019" updates Ethiopia’s banking law to allow Foreign Nationals of Ethiopian Origin to invest in the sector. It broadens permissible banking activities to include digital services and agent banking, enhances governance and consumer protection, and grants the National Bank expanded regulatory powers. While general foreign ownership remains prohibited, the proclamation sets clear conditions for diaspora participation. It also introduces new directives on interest-free banking, financial disclosures, outsourcing, and service accessibility. The amendment strengthens banking oversight and promotes inclusivity while safeguarding economic stability.
About the author
Over the course of past eight decades—which have seen several changes in government, ten central bank Governors, and multiple forms of currency notes and coins—the NBE has been entrusted with carrying out a significant set of responsibilities: administering the nation’s monetary policy, providing its bank notes and coins, acting as a banker for the government, supervising the banking sector, managing the exchange rate as well as foreign exchange reserves, and undertaking economic research.
