Efficient banking and other financial services are available in Ethiopia. While the National Bank of Ethiopia (NBE) serves as the
Central Bank, commercial banking
functions are performed by the Commercial Bank of Ethiopia (CBE) and by a number of newly emerging private commercial banks. The CBE has 164 branches
including one in Djibouti. The
CBE and private commercial banks offer savings and checking accounts, extend short term loans, deal with foreign exchange
transactions, provide mail and cable money transfer services, participate in equity
investments, provide guarantee services and perform all other commercial banking
activities.
The two specialized banks are the Development Bank of Ethiopia (DBE) and the Construction and Business Bank (CABB).
DBE extends short, medium and
long-term loans for viable development projects, including industrial and agricultural projects. It also provides other banking services, such as checking and saving
accounts, to its
clients. It has 13 main branches and 18 sub-branches in different parts of the country. The CABB provides long-term loans for construction,
acquisition or maintenance of dwellings, community facilities and real
estate development. In addition, it offers all other commercial banking services to businesses.
In conformity with relevant laws of the country, foreign enterprises/ companies formally registered/established and
operating in Ethiopia are entitled to access to
domestic credit borrowing, on the same terms and conditions applicable to Ethiopian companies.
In Ethiopia, all classes of insurance services are mainly provided
by the Ethiopian Insurance Corporation (EIC), which also manages, administers, supervises and
directs all insurance transactions. It has 21 main branches throughout the country.
A growing number of private
insurance companies are joining the insurance service business, thus creating a competitive environment in the business. |
