International banks and investors can now apply for a license to operate in Ethiopia, the country’s central bank announced, marking a major step in the government’s efforts to attract more foreign investment into its domestic banking sector.

According to Reuters, Ethiopia, currently undertaking wide-ranging economic reforms under a four-year, US$3.4 billion programme with the International Monetary Fund signed last July, is also working to float its birr currency and finalize an $8.4 billion debt restructuring deal with official creditors.

In December, Ethiopia’s parliament passed a landmark law allowing foreign banks to establish subsidiaries, open branches or representative offices, and acquire shares in local banks.

“The Ethiopian banking sector is hereby open for foreign participation and… applications by foreign banks and investors can be submitted to NBE from today onwards,”

the National Bank of Ethiopia (NBE) said on Wednesday (July 25).

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