Ethio Lease, the New York-based African Asset Finance Company (AAFC), a leasing firm targeting emerging markets, said it had directed its Ethiopian unit “to begin the process of voluntary liquidation”, citing forex constraints. “As a result of the changes to the regulatory framework, the viability of Ethio Lease as a foreign-owned leasing company became structurally impaired,” it said in a statement dated November 15. The company was the first and only foreign group to obtain a financial licence from the National Bank of Ethiopia in 2019, as part of reforms to open the country’s tightly-controlled economy. According to Ethio Lease, chaired by former Ethiopian Airlines chief executive Girma Wake, the troubles began in 2021 when the central bank changed the regulatory framework.
Ethiopia’s Only Foreign-Owned Financial Company is Set to Shut Operations
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