The National Bank of Ethiopia (NBE) issued a circular letter asserting that any interest-bearing loan agreement between individuals or companies other than financial institutions is illegal. It addressed the October 9 letter to the Federal Documents Authentication and Registration Services (DARS) not to authenticate or register interest-bearing loan agreements. However, there are strong arguments to...Read More

The National Bank of Ethiopia (NBE) has issued a directive to attract foreign direct investment by allowing eligible projects to open offshore accounts and guaranteeing currency convertibility. The eligible projects to open an offshore account are: Public-private partnership (PPP) projects in the power generation and infrastructure sectors with large capital investment needs. Large mining projects...Read More

Influential shareholders in the Ethiopian banking sector are individuals, companies, or institutions that hold directly or indirectly two percent or more of the total subscribed capital of a bank. They play a key role in the growth and development of the banking sector by providing capital, expertise, and strategic guidance. The National Bank of Ethiopia (NBE) regulates...Read More

The National Bank of Ethiopia (NBE) is reducing the amount of foreign currency earnings surrendered by exporters to the NBE from 70% to 50% and to commercial banks from 20% to 1%. The new amendment allows exporters to retain 40% of their foreign currency earnings for themselves. The Retention and Utilization of Export Earnings and...Read More

A security right in a movable property is established through a security agreement. The security agreement must be in writing and signed by the grantor and the secured creditor. The security agreement must also identify the secured obligation and provide a reasonable description of the collateral. There are three ways for a security right in...Read More

The Ethiopian Deposit Insurance Fund Becomes Operational After being established in accordance with the Council of Ministers Regulation No. 482/2021, the Ethiopian Deposit Insurance Fund becomes operational upon the appointment of Ato Merga Wakweya as the CEO of the Fund by the Prime Minister as of April 7, 2023. What is the Ethiopian Deposit Insurance...Read More

Legal Update on the National Payment System (Amendment) Proclamation No. 1282/2022 PDF Version Available Here On 22 December 2022, the House of Peoples’ Representatives of Ethiopia ratified the National Payment System (Amendment) Proclamation No. 1282/2022 amending the existing National Payment System Proclamation No. 718/2011. The bill was anticipated for a long time as it promised...Read More