Regulatory Alerts2020-02-15
Added · Updated
Manner of Equity Investment by Foreign Nationals of Ethiopian Origin in Banks Directive No. SBB/73/2020
The National Bank of Ethiopia establishes implementation modalities for Foreign Nationals of Ethiopian Origin to invest in privately owned banks and banks under formation. Subscriptions must occur within Ethiopia using acceptable foreign currency transferred through the banking system, with banks required to open foreign currency escrow or mirror accounts. Newly licensed banks must surrender 30% of collected foreign currency to the National Bank within five working days, while existing banks follow separate surrender requirements. Dividends earned by these investors must be paid in Ethiopian Birr and cannot be repatriated, though they may be reinvested in the same bank.
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