UPDATE 1-Ethiopia passes law allowing foreign banks to operate

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ADDIS ABABA, Dec 17 (Reuters) – Ethiopia’s parliament on Tuesday passed a new law allowing foreign banks to operate in the Horn of Africa country, part of government efforts to encourage more overseas investment.

Foreign banks will be allowed to establish subsidiaries, open branches or representative offices, or buy shares in a local banks, according to a copy of the law seen by Reuters.

Ethiopia’s banking sector is currently dominated by state-owned Commercial Bank of Ethiopia.

(Reporting by Dawit Endeshaw; Writing by Elias Biryabarema; Editing by Alexander Winning)

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