Banking & Finance
Ethiopia’s parliament passed a bill in 2019 to open up the country’s financial sector to an estimated five million of its citizens who have taken other nationalities, including allowing them to buy shares in local banks and start lending businesses. The changes are part of a raft of economic reforms initiated by Prime Minister Abiy Ahmed when he came to power last year, partly aimed at boosting the country’s foreign exchange reserves, which had dropped precariously low. According to report by Reuters.
The total amount of the capital of banks all over the country is 85 billion Birr and the industry totally transacts an amount worth one trillion Birr (current exchange rate 1 USD = 32 Ethiopian Birr).
The amount of profit in each banking sector is rapidly growing from time to time and the deposited money from customers has grown to 400 million Birr.
Also Ethiopia’s central bank will allow locally-owned non-financial institutions to start offering mobile money services as it seeks to boost non-cash payments in the country, it said.
The Horn-of-Africa nation is in the midst of massive economic reforms led by reformist Prime Minister Abiy Ahmed, including the privatisation of state-owned telecommunications monopoly Ethio Telecom.