Bussiness
As Ethiopia opens up banking sector to foreign players, there is an important caveat
- Foreign banks seeking to operate in Ethiopian following liberalisation of the country’s banking sector would be required to do so in partnership with local banks.
- Business Insider Africa observes that this could give room to some mergers and acquisitions in the Ethiopian banking sector.
- Ethiopia is in the process of liberalising its banking sector, with the aim of ending a decades-long restrictive banking policy that has prevented foreign banks from operating in the country.
One of the newly proposed rules that would guide Ethiopia’s banking sector liberalisation is that foreign banks hoping to operate in the Horn of Africa country must do so in partnership with local banks.
READ: [Op-Ed] On the road to a digital economy, Ethiopia is ramping up activity
This was disclosed by the lead consultant that is overseeing the liberalisation process, who also mentioned that only regional banks are eligible to the opportunity for now.
“The opening up might only be limited to regional banks in a joint venture basis with local banks… That will be easily manageable for the central bank. The first target is to boost the foreign currency inflow. There are many legal framework revisions underway and many are in a draft stage,” the consultant was quoted by Ethiopian newspaper The Reporter.
READ: Why is the dollar shortage crisis in Africa getting worse by the day?
The important caveat is coming just months after the Ethiopian Government announced that it had constituted a liberalisation committee whose job it is to establish the modalities that would guide the liberalisation process.
The implication, therefore, is that we might be seeing some mergers and acquisitions in the Ethiopian banking sector anytime soon.
Business Insider Africa reported earlier that the Ethiopian banking sector liberalisation committee has begun working towards replacing the country’s decades-old financial services code with a new one.
READ: Ethiopia is in the process of establishing its own stock exchange
The primary aim of the new financial services code is to end Ethiopia’s restrictive banking policy which has, up till now, prevented foreign banks from investing and setting up shops in the country.
The first draft of the new code is expected to be ready by December 2022. It will, among other things, stipulate the modalities for foreign banks to operate in Ethiopia.
READ: Amid fintech boom, report details how African banks can still gain an edge
Recall that Prime Minister Abiy Ahmed was the first to disclose Ethiopia’s ongoing plan to open its banking sector to foreign banks. Last month, he declared that “we will bring foreign banks because we need additional wealth and hard currency. Regarding this, the government is now preparing a policy amendment. Once preconditions are met and banks are prepared, we will (implement) that.”
The banking reforms in Ethiopia presents an opportunity for some of Africa’s biggest banks to position themselves in the Horn of Africa country.
READ: Paga announces official launch in Ethiopia following regulatory approval
Source: www.pulse.com.gh
Ghanaian dancehall artiste Charles Nii Armah Mensah, known as Shatta Wale, has won two awards at the 43rd International Reggae and World Music Awards (IRAWMA) held in Florida over the weekend.
He picked up the Best African Dancehall Entertainer award as well as Concert of the Year for ShattaFest.
In a statement, Shatta Wale’s management expressed appreciation to the organisers and supporters of the awards.
“Management would like to sincerely appreciate the organisers of the IRAWMA awards for the recognition and continuous support for African music on the global stage.
“We also extend our deepest gratitude to fans across the world, especially the Shatta Movement fraternity, for their unwavering support, votes, and dedication throughout the years,” the statement said.
The statement added that the latest wins reaffirm the artiste’s position as one of Africa’s leading musical exports and a prominent figure in global dancehall culture.
The awards bring Shatta Wale’s total haul at the IRAWMA to 11, highlighting his continued presence on the international reggae and dancehall scene.
At last year’s edition, he won three awards: Best African Dancehall Entertainer, Best Music Video for “Killa Ji Mi”, and Best Crossover Song for “Commando” featuring Bounty Killer. -GNA
Bussiness
Global Market Volatility: Gov’t absorb GH¢2.00 per litre on diesel and GH¢0.36 per litre on petrol
Effective Thursday, April 16, 2026, which is the next pricing window, the Government will absorb GH¢2.00 per litre on diesel and GH¢ 0.36 per litre on petrol.
This intervention is intended to cushion customers and ease the cost burden on households, transport operators, and businesses.
The measure, approved by Cabinet, is in response to rising prices of petroleum products on the international market, which have significantly impacted ex-pump prices in Ghana.
This temporary intervention will remain in force for a period of one (1) month.
During this period government will continue to closely monitor developments in the global oil market and assess the need for further policy adjustments.
A statement signed by Minister of Government Communications, Felix Ofosu Kwakye noted that they remain commited to maintaining price stability, protecting livelihoods, and supporting Ghana’s economic recovery in the face of external shocks.
