Ethiopia to establish independent Insurance Regulatory Agency, separating from Central Bank oversight

The government determined the establishment date of the independent regulatory body for the insurance sector. After the next fiscal year, insurers will be supervised by a separate regulatory agency, distinct from the National Bank of Ethiopia (NBE), which is the country’s central bank.
The NBE has announced that the Insurance Regulatory Agency will be established by June 2025. It has been revealed that the government is aiming to create a new entity that will oversee the insurance sector similar to how it was regulated prior to the late 1970s. Before the significant economic and governmental changes of the 1970s, the Ministry of Trade was responsible for regulating the insurance sector. However, for nearly 50 years, the central bank has been in charge of regulating the sector. The stakeholders in the sector have raised concerns, arguing that under the NBE’s oversight, the industry does not receive sufficient attention for potential growth. The government asserts that by restructuring the regulatory body, the insurance sector will become open to international investment. Additionally, the government is currently working on granting foreign investors access to the banking sector.