The National Bank of Ethiopia (NBE) announces that despite the delays in the process to opening up the financial sector to foreign investors, the major delay have come in light of the understanding of starting a new commerce venture under a clear regulatory framework.
As the central bank underscores, designing a comprehensive strategy to manage the upcoming stiff operation, is mission critical.
Since the government approved a policy early September 2022 to opening up the financial sector, NBE has been engaged on the amendment of the existed proclamation. However, some exports said that the process takes long time against the original projection of finalizing the process.
Solomon Desta, Vice Governor of NBE, who recalled the latest statement of Mamo Esmelealem Mihretu, Governor of NBE, which cited that the draft proclamation will be tabled to parliament in the coming two months, echoed that some delays might be seen but it will be primarily driven by the need to streamline a clear law regarding the opening up of the sector.
“The drafting process has been on the final stage but we have become interested to see the comment and possible inputs from stakeholders and partners on the upcoming proclamation,” he told Capital.
Solomon said that currently NBE is supported by Toronto Centre, East AFRITAC, Africa Training Institute, Tanzanian and Mauritius based IMF wings which have also provided capacity building for its staffs.
“We are working on a framework to undertake comprehensive engagement regarding strengthening the capacity of regulation. We will do preparation and we will work and learn together with those who are joining the market,” the Vice Governor explained.
He added that NBE has drafted the proclamation and invited stockholders like the World Bank, IMF and others to get their view, “Rather than reviewing the proclamation every time we are working to undertake a comprehensive document that shall have a long life.”
Foreign banks that have representative in Ethiopia have got the copy of the draft documents and have been involved on the discussion,“It is crucial for the business so we have distributed the company for international partners and diplomatic missions like the US Embassy.”
“We are working as is supposed. It may seem that the process may suffer delays but the output will be inclusive and comprehensive. If the proclamation is delayed, it is for a good cause on the consideration of quality,” he said.
“We have already accomplished the draft a while back but now we are waiting the view of partners, potential investors and stakeholders in general,” he further explained.
In five year’s time, three to five licenses shall be given to foreign banks he stated, citing, “When the proclamation is amended, we will revisit the directives.”
