A directive to the creation of the first Ethiopian reinsurance company

The new project, titled "Guidelines for the establishment of a reinsurance company," establishes the conditions for the creation of a reinsurance company.

The main provisions introduced are:

• The minimum capital is set at 25.5 million USD
• The equity can only be made by Ethiopian nationals or national organizations
• Shares held by any shareholder, except the government or a public company (fully state-owned) should not exceed 5% of the subscribed capital
• The company must operate in both life and non-life

The directive, intended to stem the outflow of foreign exchange, exclude the use of foreign reinsurers once the national reinsurance company established.