The National Bank of Ethiopia is set to introduce a directive capping bank share transfers at two percent without approval. This move aims to increase oversight on ownership changes in the banking sector. The industry, worth hundreds of billions of Birr, has previously seen minimal regulation of shareholder dealings.
The financial sector in Ethiopia is preparing for significant regulatory changes. A draft directive from the National Bank of Ethiopia (NBE) proposes limiting share transfers in banks to two percent without prior approval. This initiative signals a shift toward stricter scrutiny of large ownership movements, addressing long-standing minimal oversight in shareholder transactions.
Published on October 26, 2025, by Nahom Ayele, a Fortune staff writer, the directive is expected to fundamentally alter how bank shares are handled. The banking industry, valued at hundreds of billions of Birr, has operated with limited regulation on such dealings until now.
This regulatory shift comes as part of broader efforts to stabilize and modernize Ethiopia's financial landscape. By requiring approval for transfers exceeding the two-percent threshold, the NBE aims to prevent unchecked power plays among shareholders. No specific implementation date has been announced, but the proposal underscores the central bank's intent to enhance governance in the sector.