The financial liberalization of Ethiopia will attract extra capital and change the landscape of the sector in the country, Financial Sector Deepening (FSD) Africa Principal Innovation for Resilience, Elias Omondi, said.
In an exclusive interview with ENA, the policy and regulatory expert said what the government of Ethiopia has been doing is instrumental, particularly in financial liberalization.
Inviting other financial sector players across the continents is crucial to really come and create the changes Ethiopia desires, Omondi noted.
“That basically means you will be able to tap into talent from other continents or other countries through foreign companies. You are also going to look at various products that would change the landscape of the financial sector players in this country.”
He also stated that giving different options to customers is crucial. With that, the market will grow and financial services will be cheaper in the long run.
“I see a lot of change in terms of the growth of the financial sector of Ethiopia through bringing new products, bringing new players, and also just enabling customers with different options.”
For Omondi, opening up the market basically means that you allow competitive advantage from other countries and enable more people to really come in and search the businesses within the country.
According to him, that also means there will be more employment, foreign exchange flow within the country, and attracting extra capital because if companies set up here in Ethiopia that will mean you are going to create more employment to the people of Ethiopia.
Moreover, it is pivotal to attract more capital into the market and basically increase the base of the financial play within the Ethiopian market, the expert pointed out.
Omondi said opening up the banking sector basically means transactions can be done across the world.
This will basically open up in terms of balance of payment, foreign inflow of finances within your banking system, and increase of data processes within the banking infrastructure, among others.
Recall that Ethiopia has been undertaking massive economic reform to liberalize critical markets, including the financial sector, in a bid to attract foreign investment.
Source: Ethiopian News Agency