Regulatory Alerts2023-04-25
Added · Updated
Manner of Equity Investment by Foreign Nationals of Ethiopian Origin or Organization in Microfinance Business Directives No. MFI/30/2020
These Directives establish the implementation modalities for equity investment by Foreign Nationals of Ethiopian Origin or their organizations in Ethiopian Microfinance Institutions and those under formation. Share subscriptions must occur within Ethiopia, with payments required in acceptable foreign currency transferred through banking systems, and banks must surrender 30% of the foreign currency to the National Bank within five working days. Dividends earned by these investors must be paid in Ethiopian Birr and cannot be repatriated, though they may be reinvested in the same institution. The directives mandate specific reporting requirements, including quarterly summaries of share subscriptions, and became effective on March 9, 2020.