Even under this option, the big local banks will not opt to sell shares to foreign banks. Only small local banks, which are eager to survive, will consider selling stakes to the upcoming foreign banks, according to industry insders. The other reason for the loss of appetite for foreign investors to enter Ethiopia’s financial sector is the stagflation. “Obviously, foreign banks will not give loans to traders in Mercato, who basically play games with bankers,” he added. Local banks can also go for new client territories.”Experts also agree that banks should follow trade and investment.

Source: Ethiopian News October 01, 2022 07:43 UTC