NBE Clarifies Regulations on Foreign Investment Flows

Economic policy director Anteneh Geremew has detailed Ethiopia's new approach to investment capital flows. Foreign direct investment (FDI) is now classified as long-term productive capital, allowing for the transparent repatriation of profits and dividends. Conversely, portfolio investment is monitored closely to prevent speculative reversals. External borrowing must now pass through commercial banks under the oversight of the National Bank of Ethiopia following the removal of interest-rate caps. Furthermore, outward investments currently require individual case-by-case approval as a new macroprudential framework is being established.