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Ethiopia Caps Foreign Bank Ownership at 49%

10/22/2025

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Summary

Story summary

In a draft directive, the National Bank of Ethiopia (NBE) would cap foreign ownership in domestic banks at 49%.
The move follows Ethiopia opening its banking sector to foreign investors for the first time in nearly fifty years.
Individual investors may hold up to 7%, corporate up to 10%, and strategic up to 40%.
The NBE emphasizes macroeconomic stability and a robust regulatory framework to manage risks from foreign investment.

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Story summary

In a draft directive, the National Bank of Ethiopia (NBE) would cap foreign ownership in domestic banks at 49%.
The move follows Ethiopia opening its banking sector to foreign investors for the first time in nearly fifty years.
Individual investors may hold up to 7%, corporate up to 10%, and strategic up to 40%.
The NBE emphasizes macroeconomic stability and a robust regulatory framework to manage risks from foreign investment.