ADDIS ABABA — VISA Country Manager Yared Endale stated that Ethiopia’s comprehensive economic reforms are poised to create a favorable environment for investments in the financial sector, facilitating increased foreign investor confidence and capital inflow.
According to Ethiopian News Agency, the reforms are designed to boost the confidence of foreign investors, allowing them to operate more effectively within Ethiopia’s financial markets. “The reform creates more confidence for foreign investors to be able to come and operate in the market and increase the volume of foreign currency flow to the country,” he explained. He emphasized that the reforms are transforming the financial landscape in Ethiopia, making it particularly attractive to those in the financial sector due to the opening of markets and the influx of foreign direct investment.
Furthermore, Endale highlighted that these changes would not only benefit foreign entities but also significantly enhance the technological capabilities of domestic banks and financial institutions. The entry of experienced foreign competitors, he noted, is expected to spur innovation and growth within local banks. “Now the market is opening up. The competitors are coming with a lot of experiences which create opportunity for our banks to grow their technological capabilities… This will really increase the appetite for the banks to be able to transform,” Yared added.
Ethiopia’s ongoing macroeconomic reforms address a variety of critical issues including foreign exchange distortions, financial sector strengthening, inflation control, tax revenue mobilization, and enhancements to the business climate, aiming to solidify the country’s position as an attractive destination for global financial investments.