About the policy
The "Insurance Business Proclamation No. 746/2012" by the National Bank of Ethiopia establishes a comprehensive legal framework for regulating the insurance sector. It outlines licensing requirements, capital standards, governance rules, and operational guidelines for insurers. The proclamation aims to ensure financial stability, transparency, and the sector’s contribution to economic development. It also defines the roles of directors, ownership limits, and rules for insurance auxiliaries. By setting clear compliance standards and penalties, it promotes a sound and trustworthy insurance environment in Ethiopia.
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.
