INTRODUCTION
The Ethiopian Parliament has approved the Proclamation that allows Ethiopian by Birth but Holding Foreign Nationality to Invest in the Banking Sector. This Proclamation has amended the provision of Article 9 of the Banking Business Proclamation No. 592/2008 and Article 3 of the Investment Incentives and Investment Areas Reserved for Domestic Investors Council of Ministers Regulation No. 270/2012, which prohibits Ethiopians by birth not to acquire shares in Ethiopian banks.
As per the new Proclamation Ethiopian by birth are allowed to acquire shares in an existing Ethiopian bank or establish their own bank including banks that gives only interest free banking services, as long as they meet the requirements that are required to be fulfilled to establish banks in Ethiopia.
The Proclamation is approved by the Ethiopian Parliament on July 31st 2019 as Proclamation No. 1159/2019, but published on the Federal Negarit Gazettee and came into effect as of September 9th 2019.
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Updated on 17 May 2020
