Description

Micro-Financing Business Proclamation and its amendment aim to provide for the licensing and supervision of the business of microfinancing. Proclamation No. 626/2009 sets the requirements for licensing microfinance institutions. According to Article 4 of the Proclamation, any institution that desires to engage in microfinance activity should obtain license from the National Bank of Ethiopia. Article 25 of the same proclamation provides that any foreign national or organization fully or partially owned by foreign national may not be allowed to establish a micro-financing institution, open branches, or subsidiaries of a foreign micro-financing institution in Ethiopia or to acquire the shares of Ethiopian micro-financing institutions.