Ethiopia Ends CBE Monopoly on China-Bound Export Permits

Ethiopia’s central bank has authorized all licensed commercial banks to issue export permits and process trade-related banking services for goods destined for China, ending an arrangement that had previously centralized the process exclusively under the state-owned Commercial Bank of Ethiopia (CBE).

In a public notice issued today, the National Bank of Ethiopia (NBE) said the restriction had been lifted effective immediately as part of efforts to streamline foreign trade procedures, improve competitiveness and make export services more accessible to businesses.

The earlier directive had required all export permits for shipments to China to be processed exclusively through CBE.

Under the revised arrangement, commercial banks are now authorized to issue export permits, manage documentary credits and handle related banking transactions for exports to China, according to the notice.

The central bank said the move was intended to simplify trade facilitation and expand access to export banking services for exporters operating outside the country’s largest state lender.

“All licensed commercial banks in Ethiopia are fully authorized” to provide the services, the notice said, adding that banks must comply with existing foreign exchange and export regulations.

The exclusive monopoly was given to CBE based on general economic and financial cooperation agreement between Ethiopia and China.

The decision marks another step in Ethiopia’s broader financial sector reforms, which in recent months have included gradual liberalization measures aimed at increasing competition in banking and easing foreign exchange restrictions.

China is one of Ethiopia’s largest trading partners and a major destination for Ethiopian exports, particularly agricultural commodities such as sesame seeds, coffee and oilseeds.

المصدر: The Reporter (Ethiopia)