Regulatory Alerts2023-04-25
Added · Updated
Investment in Equities of Allied Activities Directive No. MFI/24/2013
The National Bank of Ethiopia restricts microfinance institutions from investing in allied activities other than specified sectors such as banks, insurance, warehousing, agricultural inputs, and transportation. Equity investment in any single allied enterprise is capped at three percent of the institution's total capital, with a maximum aggregate limit of ten percent across all such activities. These prudential limits do not apply to investments in financial infrastructure, capital goods finance, or interest-free banking funded by restricted investment accounts. Microfinance institutions must report these investment activities to the National Bank on a quarterly basis, and the directive replaces Directive No. MFI/06/96 effective October 1, 2013.