NBE Working on Regulatory Framework to Allow Foreign Banks Operate in Ethiopia: Governor

Addis Ababa, August 02/2023 (ENA) The National Bank of Ethiopia (NBE) is working aggressively to finalize the regulatory framework that allows foreign banks to operate in Ethiopia, Governor Mamo Mihretu said.

In an exclusive interview with ENA, the governor said the national bank is working aggressively to deepen financial intermediation and to regulate the financial sector, including banks, so that they can provide better services and accelerate the digitization effort in general.

“There is so much happening in terms of financial deepening, inclusion, technology, and financial opening up. We are also working a new regulatory framework that would allow the Ethiopian economy to Foreign Direct Investment (FDI); which means we will allow banks to come and operate in Ethiopia at some point in the future,” he added.

According to the governor, the Bank is currently finalizing its three-year reform program that focuses on addressing inflation problem and external stability.  

“We are now coming out of conflict through a peace agreement and this creates a good opportunity for us to go back to our economic reform program that would achieve meaningful growth which benefits Ethiopians in general,” he noted

Speaking about the discussions he had with the World Bank President Ajay Banga, the governor said Ethiopia and WB have a strong and longstanding strategic partnership.

The Bank supports the people and  the Government of Ethiopian in so many ways, including financing road, energy, social and safety net projects.

“The World Bank president is committed to support us in so many ways, both in new lending, new investment operation for new projects; and importantly also to provide additional support for Ethiopia's economic reform program.

That is what we discussed and the discussion was really fruitful. We want to deepen this further.” 

Mamo also revealed that Ethiopia is launching a coordinated and comprehensive economic reform program to achieve macroeconomic stability.

“We want to make sure that we are following prudent monetary policy and achieve external exchange rate stability.”

Furthermore, the governor pointed out “it is a question of time until we balance the economy and support and stimulate the productive sector, whether agriculture, industry, tourism, ICT or mining. And all this is part of this comprehensive and coordinated economic program that we are currently pursuing.” 

Mamo finally stated that Ethiopia is in the middle of a deep, comprehensive and coordinated economic reform program cutting across many issues and is discussing with its partners to support the economic reform efforts.