A nation once characterised by land-locked isolation and poverty, Ethiopia has emerged as Africa's 'newest Lion economy' and continues to accelerate in the global economy.

The banking business sector in Ethiopia was exclusively reserved for domestic investors for a half century. The sector began to be opened to foreign investors since 2023.

Ethiopia has opened residential property ownership to foreign nationals for the first time under Proclamation No. 1388/2025, ending decades of prohibition. What are the minimum investment thresholds, payment requirements, and registration procedures that foreign buyers, developers, and lenders must navigate?

On February 12, 2026, the National Bank of Ethiopia issued the Foreign Exchange Amendment Directive No. FXD/04/2026 revising provisions of the Foreign Exchange Directive No. FXD/01/2024.

In Ethiopia, registering a business is not optional-it is the legal doorway to operate and transact. Trading without registration and licensing exposes the owner to administrative penalties and potential criminal liability. Understanding how to legally establish a business in Ethiopia requires knowledge of three essential legal pillars: Commercial Registration, Trade Name Registration, and Business Licensing.

Ethiopia’s post-July 2024 foreign exchange (FX) reforms—anchored in the National Bank of Ethiopia’s Foreign Exchange Directive No. FXD/01/2024—represent a structural shift from administratively constrained FX allocation toward a more market-based exchange rate and broader authorization of current-account FX transactions through the banking system.

Ethiopia as a country and an investment destination has come into my consciousness recently for a number of reasons...

Ethiopia's commercial landscape has undergone a profound structural transformation since the enactment of the Commercial Code of Ethiopia (Proclamation No. 1243/2021), which replaced the venerable 1960 Commercial Code that had governed business activity in the country for over six decades.

Ethiopia recently enacted the Startup Proclamation No. 1396/2025 (the "Proclamation"), introducing a long-awaited legal framework for the recognition, regulation, and support of startups...

Ethiopia has emerged as one of the most compelling investment destinations on the African continent. With a population exceeding 120 million — the second largest in Africa — a strategic geographic position at the crossroads of African, Middle Eastern, and Asian trade routes, and a government that has undertaken a sweeping programme of economic liberalisation, the country presents opportunities of a scale and diversity that few jurisdictions on the continent can match.

Yes. For the first time in over 50 years, Ethiopia has opened its banking sector to foreign institutions. On December 17, 2024, the Ethiopian Parliament approved Proclamation No. 1360/2024...

Ethiopia has enacted the Banking Business Proclamation No. 1360/2025 and Directive No. SBB/95/2025, opening its banking sector to foreign investors for the first time in over 50 years.

The commercial relationship between the United Arab Emirates and Ethiopia has deepened considerably over the past decade, driven by geographic proximity, complementary economic profiles, and a growing web of bilateral agreements that provide the legal infrastructure for sustained investment flows. For UAE-based investors — whether Emirati nationals, family offices, sovereign-adjacent funds, or the substantial community of international entrepreneurs who operate through UAE corporate structures —

Ethiopia stands out as one of Africa's fastest-growing economies and a key gateway for investment in East Africa. In recent years, the Ethiopian government has modernized its business laws - notably with the Commercial Code Proclamation No. 1243/2021 - to make registering a company more transparent and investor-friendly. For foreign investors, this means clearer rules and a defined process for entering the market.

On 12 February 2026, the National Bank of Ethiopia (NBE) issued Directive No. FXD/04/2026, amending the foundational Foreign Exchange Directive No. FXD/01/2024. The new directive, signed by NBE Governor Eyob Tekalign (PhD), represents the most significant liberalization of Ethiopia's foreign exchange regime since the landmark July 2024 reforms.