Ethiopia's Zam Zam Bank to open next year.
Ethiopia is expected to have its first Islamic bank by the first
half of next year when Zam Zam Bank, currently in its formation stage,
will start operations. Zam Zam Bank has been established but not
operating since 2008 when the country's Central Bank, the National
Bank of Ethiopia, amended the country's banking regulations to
allow interest-free banking. By August this year, officials of the bank,
currently trading as Zam Zam Bank Share Company, said they had raised
$19 million, surpassing the initial target of $14.4 million. A
presentation made to prospective investors indicates that the bank
requires working capital of $14.6 million, which will be kept in escrow until 30 June 2012. Ethiopian law, however, limits the ownership of
interest-free banking institutions to locals, thereby shutting out
potential foreign investors.
2012 CPI Financial. All rights reserved.
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