Ethiopia wants to develop Islamic finance

Nov 08, 2016

The country is looking to diversify its economy.

The Ethiopian Central Bank is planning to develop Islamic finance in order to improve financial inclusion in the country and diversify its economy, which is heavily dependent on agriculture.

"The government wants to industrialize the economy. But the process requires a sustained investment rate of over 40 per cent of GDP in the next five years," said Getahun Nana, Vice Governor of the Ethiopian Central Bank, quoted by the Ecofin agency.

"This can only be achieved if the financial sector, particularly the banking sector, plays a significant role in mobilizing the domestic savings needed," he added.

The central bank is currently conducting a study to determine the country's demand for financial products that comply with Sharia principles.

"A specific regulatory framework will be set up so that no one is excluded from financial services for reasons of religion," he said.ADNFCR-2976-ID-801828021-ADNFCR