Somalilandsun: Commercial Bank of Ethiopia (CBE) is planning to extend its business presence around the Horn of African countries including Somaliland as Jubaland poised to endorse Financial and Investment act that would open its financial space for foreign financial institutions.
The act has been finalized and will pave the way for foreign business to operate in the de facto state of Somaliland hoping that Ethiopian institutions and businesses will enter the country, announced the Central Bank of the country. According to the Bank, the new law to be tabled at the parliament is expected to be ratified in the early January.
Zekarias Mekonnen CBE Investment Management Director, CBE has been conducting an assessment to make Somaliland one of the business destinations of the Bank. The fact that Somaliland takes a step to make such legislation is an opportunity for regional banks and regional integration.
“We are working to scale up our financial, technological and human potential to use the opportunity and extend our destinations in neighboring countries. It also requires economic profit and operational cost and market viability assessments.” “We have already finalized the first draft of such assessments and will be discussed at managerial levels.”
The stability, growing foreign direct investments and average GDP make Somaliland a preferable market opportunity, Zekarias added. However, he said global compliance is the challenge that would face investment in the country for the country is not fully recognized by the international community.
This is not the first time that CBE has opened its branch in neighboring countries. The bank has previously opened branches in Djibouti, South Sudan while the plan to open in Sudan has been briefly delayed because of the recent political situation in the country.
The first objective of doing business in neighboring countries is to foster regional economic integration and ensure free movements of capital and investment besides maximizing profits.