ADDIS ABABA (Reuters) - Ethiopia will allow foreign banks to set up local subsidiaries and foreigners to acquire shares in domestic lenders, according to a bill approved by the cabinet on Friday, as part of the government's broader plan to liberalise the economy. The country of more than 100 million people is one of the biggest economies in Sub-Saharan Africa and has market long eyed by foreign investors after being closed off for decades. "A foreign bank which is well established, reputable and financially sound may be allowed to establish (a) partially or fully owned foreign bank subsidiary, or open a foreign bankbranch, or a representative office, or acquire shares of a bank," the bill states. The draft law, which lawmakers must first pass, says that foreign bank subsidiaries include local resident non-shareholder Ethiopians on the board of directors. In May last year the central bank announced it would offer five banking licences to foreign investors within five years.

Source: Ethiopian News June 14, 2024 16:29 UTC