Ethiopia is one of the last "frontier markets" with a population of over 120 million people making it a rare market opportunity for strategic investors with long term plans.

Ethiopia has of late taken measures that liberalize the financial sector. The issuance of the new Banking Business Proclamation No. 1360/2025 (Banking Business Proclamation) and Capital Markets Proclamation No. 1248/2021 (Capital Market Proclamation) are salient examples.

People who control a company, be they directors, managers or controlling shareholders, may use their power to divert the company's wealth to unfairly enrich themselves or others.

The long-standing Commercial Code of Ethiopia first issued in 1952 was just recently replaced with a new Code in 2021.

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.

Reasons ranging from macro-economic conditions to poor management may result in placing a business in financial distress.

Investment in Africa and business deals with African parties are often made against a background of real and perceived risks.

Mergers & Acquisitions Comparative Guide for the jurisdiction of Ethiopia, check out our comparative guides section to compare across multiple countries