VenturesNow

Ethiopia to issue banking incence to foreign investors

Published

2 years ago

May 3, 2023

A senior official at Ethiopia’s central bank, Solomon Desta has revealed that the country plans to issue up to five banking licences to foreign investors in the next five years.

The move is said to be part of the initiative to open up the financial services sector to foreign competition.”We will give three to five licenses within five years,” Desta told reporters.

Desta stated that foreign investors would have different options to enter the industry, including forming joint ventures with domestic players or establishing local subsidiaries.

Liberalisation of the banking sector has been on the front burner of the government as Prime Minister Abiy Ahmed’s government has promised to open up the sector.

The banking sector in Ethiopia is dominated by the state-owned Commercial Bank of Ethiopia, and 29 other players, all of whom are locally owned.

The government intends to follow its policy of two years ago which granted a telecoms licence to a private operator to break the monopoly of state-owned Ethio Telecom in that sector.

Ethiopia is currently recovering from two years of war in its Tigray region which clipped economic activity in the Northern region. The country remains in the eye of investors, with targets on sectors like telecoms, transportation, and aviation.

Related Topics:Banking Ethiopia Featured

Click to comment

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

4 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

5 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”