Ethiopia plans to grant five banking licenses to foreign investors who are interested in working in the banking sector in the next five years.
According to Reuters, the deputy governor of the National Bank, Solomon Desita, will grant banking licenses to upto five foreign investors who want to work in Ethiopia’s banking sector.
Mr Solomon stated that, this aims to open up the country’s financial sector services to foreign competitors.
So far, the banking sector has remained closed to foreign investors. It has been announced that it will be open to foreign competitors in the next five years.
In addition, there may be an option for foreign investors to work together with local investors in the industrial sector.
Foreign investors have shown interest in Ethiopia, especially in the banking, telecom, transportation and aviation sectors.
After Prime Minister Abiy Ahmed came to power, he promised that sectors that have been closed to foreign investors will be privatized.
In addition, it has been stated that the auction for the third foreign telecom license has been started by selling 45 percent of Ethio Telecom, which has been a public development company and the only telecom company, to a foreign investor.