Ethiopia witnessed a substantial wave of regulatory reforms in 2023 that altered the country’s legal and economic environment. These groundbreaking initiatives covered a wide variety of industries, demonstrating the government’s dedication to creating an atmosphere that is favourable to growth and sustainable development. Ethiopia exhibited a forward-thinking approach in navigating this regulatory landscape, as evidenced by the numerous changes that positioned the nation for greater economic resilience and global competitiveness. Ethiopia underwent these significant regulatory changes in 2023.
National Payment System Proclamation Amendment
Amendments to the National Payment System Proclamation have been approved by the House of People’s Representatives, which represents a major change in the financial environment of the nation. One of the most significant adjustments is that foreign investors are now allowed to engage in the issuance of payment instruments, mobile banking, and banking and payment system operations. A country’s national payment system regulations are established by a National Payment System Proclamation, which functions as a legal framework. It is significant because it shapes and facilitates the operation of the payment system, which is an essential part of the financial system. Because it facilitates the smooth transfer of money and transactions, a well-regulated payment system helps maintain the stability of the financial system.
Capital Market Proclamation No. 1248/2021
Ethiopia has introduced the Capital Market Proclamation No. 1248/2021, a comprehensive legal overhaul that represents a significant step towards economic transformation. Important clauses in the proclamation include the creation of a Compensation Fund to protect investors, strict measures against prohibited trading practices, regulation of entities engaged in securities exchange, and the introduction of Collective Investment Schemes (CIS). The establishment of the Capital Market Tribunal has strengthened the legal framework by offering an unbiased and equitable means of resolving disputes. Ethiopia is now positioned as a major player in the international financial scene thanks to this revolutionary legal change, which also highlights Ethiopia’s dedication to capital mobilization, opportunity creation, and sustainable economic growth.
