Ethiopia - New directive mandates foreign banks establishing subsidiaries or branches must provide five billion birr

Published on: 08 Apr 2025

- The directive mandates a minimum paid-up capital of five billion birr—approximately 39.7 million US dollars at the current average exchange rate of 126 birr per dollar

- Representative offices, restricted to non-banking roles, require 100,000 US dollars annually

- Licensing fees add further costs: 1,587 US dollars (200,000 birr) for investigation and 4,762 US dollars (600,000 birr) for a branch or subsidiary license—double the fees for local banks at 794 dollars (100,000 birr) and 2,381 dollars (300,000 birr).


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