Description

This Proclamation is enacted to put in place a comprehensive legal framework to regulate insurance sector and ensure its reliability and stability. Article 10 of the Proclamation provides that foreign national or organizations fully or partially owned by foreign nationals may not be allowed to own insurance company or carry on insurance business or operate branch offices or subsidiaries of foreign insurers in Ethiopia or acquire the shares of Ethiopian insurers. Furthermore, Article 2(8) of the Proclamation defines the term company as a share company as defined under the Commercial Code of Ethiopia, in which capital is wholly owned by Ethiopian nationals and organizations wholly owned by Ethiopian nationals and registered under the laws of and having its head office in Ethiopia. These requirements/conditions prevent foreigners from engaging in insurance business and foreign banks from opening branches and operating in Ethiopia.