National Bank of Ethiopia Unveiled New Strategy ??

The National Bank of Ethiopia (NBE) has unveiled a comprehensive 3-year strategy aimed at addressing Ethiopia's key macroeconomic challenges. With 5 key aims and 24 associated programs, the strategy is designed to foster stability and growth in the country's financial sector. It includes 25 key indicators to measure its success, focusing on stable pricing, a healthy finance sector, digitization, inclusivity, improved workforce and technology, and operational transparency.

According to NBE, recent efforts to control inflation have shown promising results, with a decrease in inflation over the past 6 months. The Bank's actions, including reducing overall loan amounts and increasing loan interest rates, have contributed to a decrease in the prices of certain goods. NBE aims to further decrease inflation by 28% before July 2024, and current data suggests a positive trend.

The banking sector in Ethiopia is experiencing robust growth, with increased profitability and success. Financial service-providing companies collectively hold 3.1 trillion ETB in wealth, and banks hold 2.3 trillion ETB in deposit cash, indicating a healthy and growing sector. The increasing digitization of payment systems has further contributed to the sector's growth.

In response to potential changes in the foreign currency market, the Governor affirmed that the Ethiopian Government has no intention of making alterations. However, NBE is formulating rules and regulations for the entry of foreign banks and financial institutions into the country, aiming to address foreign currency issues and create new opportunities.

Exciting developments are also underway for the stock market and capital market, with preparations being made for their launch before September 2024. Additionally, Ethiopia's foreign loan-to-GDP ratio is decreasing, reflecting the country's prudent financial management.

Stay tuned for more updates as Ethiopia's financial sector continues to evolve and thrive! #EthiopianFinance #NBEUpdates #EconomicGrowth ??