Ethiopia tightens rules for foreign investors seeking to repatriate earnings
Addis Ababa, Ethiopia. Foreign investors are eligible to acquire external loans when the debt-to-equity ratio does not exceed 60:40 of the foreign capital.
The National Bank of Ethiopia (NBE) has tightened rules for foreign investors seeking to repatriate profits, dividends, earnings from sale of company shares and proceeds of liquidation, as part of the ongoing forex market reforms aimed at protecting the forex reserves and the fragile local currency.
This comes as Prime Minister Abiy Ahmed’s administration works to open up the economy to foreign investments after decades of state control leading to rising inflation, mounting debt and foreign currency shortage, which are impacting foreign investments in Africa’s second-most populous economy.
