Microfinance

The National Bank of Ethiopia (NBE) has increased the minimum initial paid-up capital of microfinance institutions (MFIs) by more than sevenfold. NBE revised its Minimum Paid-up Capital and Capital Adequacy Requirement Directive to set the new threshold to get a license for microfinance businesses. The revised directive which repealed and replaced the 2015 legislation, became effective as of Jan 16, 2023. The revision saw the minimum initial paid-up capital required to obtain a microfinance business license to 75 million Birr from 10 million Birr. Increasing the threshold has become necessary to improve MFIs’ capacity to serve the growing needs of…