Although shareholders have been asked to return back to their ancestral home of Ethiopian foreign investors as a shareholder in various banks and insurance companies, their share capital is still being offered.
Unity Bank has sold a share of 100 birr to 1,027 birr in the previous week. According to the order of the National Bank of Ethiopia, the Federal Bank of Ethiopia has given 1,600 shares in bid to be transferred to the Ethiopian National Bank for share sale of shares held by foreign nationals.
Accordingly, the Bank has offered a price of 1,027 birr per share for the price of 100 birr. According to information obtained from the bank, stocks that have been sold at 1,027 birr have been identified. The minimum purchase price (including the cost of a premium service) of shareholders is 200 birr. The minimum price indicates that the price of one birr is 100 birr and the bank has doubled its offer. The share price of each ETB for each price of 100 birr was 214 birr.
The National Bank of Canada has enacted a law prohibiting the participation of foreign nationals in the banking industry, and banks have been able to transfer shareholding by checking stock of Ethiopian nationals of foreign nationals. Since the Bank has passed its policy, all financial institutions have been doing this.
According to the principle, Ethiopians of foreign nationals who are allowed to sell shares in shareholding companies in banking and insurance companies only have the amount they can buy. It was also noted that the decision was a result of fierce protests by the government against massive protests and prosecutions.
The financial institution also enforces the shareholders’ order after submitting the tender and then enforcing the additional profits earned from the sale of the principal value of the shares. According to the principle of the Bank, Bank of America is obliged to retain the remaining 100 shares in a share price of 1,027 birr. The scheme was launched two years ago, and within a year, all private banks have been selling shares of Ethiopian nationals by foreigners, selling over 800 million Birr.
At present, banks are in the process of acquiring the shares of Ethiopian nationals who are foreign nationals, but the number of subscribers of the Ethiopian stock of which are currently being discounted is estimated to be no more than five per cent. At present, however, it is expected that this will be significantly reduced.
However, when the controversial policy is said to be unsuccessful, it is now obvious that the sale of such a stock is very high. Particularly for the large share auction of stock auctions on major banks, it was revealed that the bid to buy shares in banks was an indication.
Foreign lawyers have yet to be a shareholder in the banking and insurance companies, and although their attorneys have been evacuated, the legislation is being drafted in the financial sector.
Three weeks ago, the National Bank of Ethiopia (NDRC), Dessie Dessie, said that the Diaspora has been drafted into the financial sector and approved by the bank, but in the meantime, the shareholders who have changed their citizenship have been selling and selling.