The National Bank of Ethiopia (NBE) has unveiled a sweeping new directive aimed at overhauling corporate governance across the country’s insurance sector, in a move widely hailed as a turning point for industry transparency, accountability, and stability.

Directive No. SIB//2025, released this month, introduces far-reaching reforms to the management and oversight of Ethiopia’s insurance companies. The NBE’s initiative comes as the sector faces mounting pressure to modernize, improve consumer trust, and align with international best practices amid broader regulatory changes sweeping across East Africa.

The directive mandates that at least one-third of board members at insurance firms must now be independent, with no family, business, or employment ties to the company. This measure is designed to strengthen objectivity in critical board functions such as risk management, strategic planning, and audit oversight.

For the first time, the NBE is also requiring staff representation on boards and the appointment of independent directors, a move industry experts say will foster more balanced and transparent governance. “This is a bold and timely regulatory measure that will have a major impact on the governance and sustainability of Ethiopia’s insurance industry,” said sector veteran Getachew Beshawred.

To ensure these changes are effective, the directive calls for management training for employee board members and rigorous conflict-of-interest screening for independent directors. A formal conflict of interest registry will also be established, with directors required to disclose any potential conflicts before every board meeting and abstain from related decisions.

Insurance companies must now establish key executive committees—including audit, risk and legal compliance, and nomination and remuneration committees—with clearly defined roles and regular meeting schedules. These bodies are expected to play a pivotal role in analyzing operational risks, ensuring capital adequacy, and addressing policyholder complaints.

In a bid to increase board accountability, the directive introduces mandatory annual self-assessments, with boards required to evaluate their effectiveness and report findings to both shareholders and the NBE.

NBE officials emphasized that the reforms are designed to put the interests of policyholders above those of shareholders. “In insurance, trust is the product, and payment integrity is the brand,” said Getachew, underscoring the sector’s social responsibility.

The directive also encourages insurers to integrate environmental, social, and governance (ESG) principles into their operations, requiring directors to manage sustainability-related risks and opportunities. This forward-looking approach aims to position Ethiopia’s insurance sector among the most robust in Sub-Saharan Africa.

The directive comes as Ethiopia prepares to establish an independent insurance regulatory agency by June 2025, ending nearly five decades of central bank oversight. The move is expected to open the sector to greater international investment and foster innovation, as the government seeks to address longstanding challenges such as low insurance penetration, limited product variety, and skills shortages.

Industry analysts see the new governance rules as a critical step toward unlocking the sector’s full potential. “Regulatory enhancements have sought to foster stability and consumer confidence,” notes a recent regional insurance outlook, pointing to the broader trend of modernization and financial inclusion across East Africa.

As the reforms take effect, the effective implementation and enforcement of these new standards will be crucial in realizing their promise—building a more transparent, accountable, and resilient insurance sector that benefits both industry players and Ethiopian policyholders.

A forensic document analysis has cast doubt on the authenticity of a key signature in a high-stakes ownership dispute involving BGI Ethiopia Plc, a leading brewery in the country. The investigation, conducted by Pro Script, a forensic document analysis firm, focused on signatures attributed to Zewdnesh Getahun in a 2001 meeting minutes document.

Zewdnesh has filed a lawsuit against BGI Ethiopia for over 8 million birr, alleging that her 27% ownership stake was illegally transferred through a forged document. The forensic report compared the questionable signatures with sample signatures from Zewdnesh dating back to 2003 and up to 2024.

The forensic examiner identified significant “handwriting differences” between the disputed signatures and the known samples. These discrepancies included variations in letter arrangement, attachment, shape, size, and writing style. While some similarities were noted, such as inclination and alignment, they were deemed insufficient to establish authenticity.

However, the analysis faced limitations due to the use of copied documents and differences in writing styles—Amharic type in the samples versus cursive Western script in the disputed document. Additionally, the sample signatures were written at different times, with the earliest sample dated two years after the disputed signature.

Considering these findings and limitations, the forensic examiner concluded that the evidence suggests the person who wrote the sample signatures was likely not the same person who wrote the questionable signatures in the 2001 meeting minutes. This analysis could prove pivotal in the ongoing legal battle.

Zewdnesh claims she co-founded BGI Ethiopia and that her shares were illegally transferred after Brasseries International Holding Limited (BIH) acquired shares in the company. Her lawsuit seeks recognition of his ownership rights and payment of unpaid dividends.

The dispute has sparked a heated legal debate, with BGI Ethiopia arguing that the case is time-barred under contract law, while Zewdnesh’s team contends it is a matter of property rights, not subject to the same time limits. The case continues to unfold in the Federal First Instance Court, with significant implications for BGI Ethiopia.

A serious conflict has emerged between the Addis Ababa Revenue Bureau and the country’s accounting and auditing professionals following allegations that hundreds of accountants and auditors were involved in underreporting and concealing over 10.6 billion birr in revenue, according to experts and professional associations.

On April 1, the Revenue Bureau announced the results of a preliminary audit covering 36,729 tax records from the 2016 EC fiscal year. The audit reportedly uncovered attempts by some taxpayers to underestimate income and submit inaccurate financial reports, potentially causing significant revenue loss to the government. The Bureau claimed it averted damage to public interests by identifying concealed revenue totaling 10.65 billion birr.

Following these findings, the Bureau referred a list of 823 accountants and auditors to the Accounting and Auditing Board of Ethiopia (AABE) for disciplinary action. The measures range from written warnings to license revocations under the authority of Tax Administration Proclamation No. 983/2008. Among those flagged, 334 professionals allegedly submitted accounting records with discrepancies exceeding 75 percent in reported income. The Bureau also indicated that individuals practicing without professional licenses would face similar scrutiny.

The announcement has sparked strong backlash from the accounting community. In a joint statement, the Ethiopian Professional Association of Accountants and Auditors, the Association of External Auditors, and the Accounting Society of Ethiopia condemned the Bureau’s public disclosure of the allegations, arguing it undermines the profession’s credibility and damages public trust in financial reporting.

While the associations expressed willingness to cooperate with the Bureau’s request for investigation, they criticized the wide media dissemination of the information as premature and detrimental. They called on the Revenue Bureau to retract the public statements and remove related content from all media platforms.

The professional bodies also urged the AABE to conduct a thorough investigation into the allegations and publicly share its findings. They warned that the negative publicity could discourage clients from engaging accounting professionals and demoralize practitioners, potentially leading to attrition in a sector already facing a shortage of qualified experts.

“The accounting and auditing profession is critical for ensuring transparency and accountability in Ethiopia’s economy,” the associations said. “This situation risks eroding investor confidence at a time when the country is implementing major economic reforms, including the launch of capital markets.”

The groups further criticized the Bureau for failing to engage in adequate dialogue with professionals before making the accusations public. They stressed that unilateral investigations and announcements without due process violate principles of fairness and professional respect.

The Accounting and Auditing Board of Ethiopia also expressed concern over the premature release of information before completing its inquiry, emphasizing the need for due process and giving professionals the opportunity to respond.

In an effort to resolve the dispute, the associations have called for urgent dialogue between the Revenue Bureau and representatives of accounting and auditing professionals. They warned that continued confrontational actions could seriously harm the profession and negatively impact Ethiopia’s broader economic development.

The Addis Ababa Revenue Bureau recently established a Quality Assurance Unit to re-examine tax audit decisions and improve accountability, signaling a broader push for tax compliance and transparency. However, experts say balancing enforcement with professional collaboration will be key to sustaining trust and effectiveness in Ethiopia’s tax and financial reporting systems.

The Turkish Forwarding and Logistics Association (UTIKAD), a prominent logistics association and a vital sector lobbying group, has signed a cooperation agreement with Ethiopia’s FIATA-member association, the Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA).

This agreement was formalized during a side event at the International Civil Aviation Organization’s (ICAO) Global Air Cargo Summit in Antalya, Türkiye, on April 9.

The partnership aims to strengthen the ties between the two associations and enhance collaboration in the transportation sectors of both countries.

Under the terms of the new agreement, UTIKAD and EFFSAA will collaborate to develop logistics expertise and foster stronger industry relations.

EFFSAA Board of Directors President Dawit Woubishet stated that the protocol will assist Ethiopian logistics professionals in expanding their skills. “UTIKAD is well-known for its robust training programs and expertise in the sector,” he remarked.

The ICAO Global Air Cargo Summit, the first of its kind in the organization’s 75-year history, provided a platform for industry leaders to discuss key logistics trends.

Dawit, who also serves as Chairperson of the Airfreight Institute at the International Federation of Freight Forwarders Associations (FIATA), presented Ethiopia’s progress in digitalizing its transport sector.

He emphasized the country’s advancements in e-commerce, which is significantly developing to serve the continent, as well as improvements in perishable cargo handling.

“This event was an opportunity to showcase our standards and identify areas where we need to collaborate with more digitally advanced partners,” Dawit explained.

In addition to the ICAO summit, which concluded on April 11, Dawit attended the IATA World Cargo Symposium in Dubai, the largest industry event with nearly 2,000 participants. A significant milestone was achieved at the symposium, with FIATA and IATA agreeing to enhance data exchange cooperation.

“This agreement will improve collaboration between airlines and freight forwarders in cargo handling,” Dawit said. “It also brings us closer to realizing FIATA’s ‘Air Cargo Global Program,’ which was launched during the 2023 meeting in Addis Ababa.”