Regulatory Alerts2013-04-25
Added · Updated
Requirements for Licensing of Capital Goods Finance Business Directives No. CGFB/02/2013
The National Bank of Ethiopia establishes licensing and supervision requirements for capital goods finance companies, mandating that entities be established as share companies and subjecting organizers, project managers, directors, and chief executive officers to fit and proper criteria assessments. The directives specify minimum educational and experience thresholds for key personnel, require comprehensive business plans and operational policies before commencement, and set annual license renewal obligations. Financial penalties include investigation and licensing fees of Birr 5,000 each for new applicants and Birr 5,000 for renewals, with provisions for license revocation or suspension for non-compliance, insolvency, or failure to commence operations within 12 months. These directives entered into force on October 1, 2013.