LLM in Commercial Law

Permanent URI for this collectionhttps://etd.hu.edu.et/handle/123456789/180

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A COMPARATIVE STUDY ABOUT CHALLENGES AND POTENTIALS OF DECLARING CITIES AS FREE TRADE ZONE IN ETHIOPIA
(Hawassa University, 2024-05) LIDIYA MULUGETA KINFE
The role of free trade zone for enhancing the economy of developing countries becomes invaluable these days. Because of that, different countries in the world choose to establish and free trade zone. Ethiopia also declared the city Dire Dawa to be the first pilot free trade zone area since 2022. However the law which allows the establishment of free trade zone and regulates the activities concluded in free trade zone area, is still on its draft stage. Addressing the challenges and opportunities of declaring city administrations as free trade zone areas in Ethiopia especially with regard to law and policy is the major aim of this research. In order to achieve this aim qualitative research methodology implemented. Interview was conducted with some important key informant individuals who are presumed to give a reliable data for this research. In addition to that the experiences of different countries are also provided for comparative purpose. Hence the research is a blend of both doctrinal and non-doctrinal legal research. Based on the finding of the thesis, it is concluded that the free trade zone formation in Ethiopia faced an obstacle because of the absence of regulatory legal frame work enacted mainly to administer those areas in Ethiopia. And also the preparation of the country in general and the city administration particularly seems minimal on especially on free trade zone formation and other related aspects. So it is highly recommended that the draft law which allows the establishment of free trade zone in Ethiopia to be effective as early as possible. And the preparation of the country should be improved on so many grounds.
ASSESSING THE LEGAL AND REGULATORY FRAMEWORKS FOR MORTGAGE BANKS IN ETHIOPIA
(2023-11) RASHIDA AMAN JERSO
The development of mortgage banking legal and regulatory frameworks can determine the efficiency and sustainability of the housing finance system. A well-functioning mortgage market will primarily increase funding for housing at competitive cost and pricing to consumers of housing there by enabling more people to afford decent housing. The lack of mortgage banking legal and regulatory frameworks and integrating them with other conventional banks governing regimes is causing doubt and undermining the recently revived mortgage industry in Ethiopia. Hence, the basic objective of the study is to assess mortgage banking legal and regulatory frameworks in Ethiopia. The qualitative method of the study has been used to address the research questions effectively and efficiently, and the research has been supported by the notion of public interest theory. In conducting the study, general principles pertaining to effective legal and regulatory frameworks for mortgage banks and the experiences of some of the purposefully selected countries based on their successes and relevance to Ethiopia have been used. Finally, the study found that the outdated and one-sized legal and regulatory frameworks for all banks in the Ethiopian universal banking model have influenced the development of mortgage banks in Ethiopia. The study recommends that lawmakers should enact a comprehensive law and set up an organized regulatory framework for mortgage banks so as to adequately regulate and harmonize the housing finance system in the country.
COMMERCIAL AGENT IN ETHIOPIA: A COMPARATIVE STUDY
(2019-02) MULUGETA TEKLEHAYMANOT
This is a comparative research work on the legal frame work of “Commercial Agent” in Ethiopia with an objective of exploring the various available legal frameworks there for and the associated problems therein. In this LLM thesis, it has been tried to overview the various legal protections on Commercial Agent in different jurisdictions and to also compare and contrast these ‘Commercial Agent’ frameworks with that “Commercial Agent” Legal frame work in Ethiopia. The paper finally comes up with some conclusions drawn from the legal loopholes and problems observed in the Laws which bestowed protection to Commercial Agent and the findings of the research show that there are inadequate legal frameworks to regulate the Commercial agency, part icularly Commercial Agent in Ethiopia. As a result under the Commercial Code of Ethiopia regarding the scope of a commercial agent’s activities , the exclusionary rule from Commercial agent businesses , the effect of Continued performance after the ex piry of fixed period, the consequences of non - observance of mandatory notice for termination, duty to cooperation of the commercial agent and principal, issue of remuneration post termination, the entitlement of Commercial Agent up on termination for de finite period of time, the entitlement of Compensation/indemnity if the agency relation is terminated due to death, illness, age and infirmity of the agent ,obligation not to compete post termination and the time - barred(period of limitation) for entitleme nt of compensation up on termination of the agency agreement are not properly addressed in a manner that attracts Commercial agency business investment.
DUTIES AND LIABILITIES OF SHARE COMPANY DIRECTORS UNDER THE NEW COMMERCIAL CODE OF ETHIOPIA: LESSONS FROM SOME SELECTED COUNTRIES.
(HAWASSA UNIVERSITY, 2024-05) EMIL KEDIR
his research examines the duties and liabilities of share company directors under the new Ethiopian commercial code, comparing it with South African, United Kingdom, and German company law. The study aims to examine the best experiences and lessons learned from these countries and draw lessons for the Ethiopian system. The research highlights the limitations of the revised Ethiopian commercial code, recommending that directors must operate in the best interests of shareholders. However, the director's duty of loyalty did not include all three components: refraining from using corporate opportunities for personal gain, refraining from having a personal stake in business transactions with third parties, and maintaining confidentiality of corporate information. Despite these shortcomings, the new Ethiopian commercial code remains effective compared to foreign jurisdictions. The research also provides recommendations for improving the Ethiopian commercial code
EXAMINING OVERSEAS EMPLOYMENT LEGAL FRAMEWORK OF ETHIOPIA: IMPLICATIONS FOR REMITTANCE AND THE NEED FOR FURTHER REFORM
(HAWASSA UNIVERSITY, 2024-03) TEREFE JOMBA DAGERO
Ethiopia underwent a series of labour law reforms that culminated in the amendment of overseas employment proclamation in 2021. In view of this national trend, the study attempts to examine the extent to which the imperatives of global overseas employment interrelation have made inroads in to the inflow of remittance from overseas employment legal framework and policy regimes. To address this main research question, a qualitative legal research method is employed to analyze data that has been collected from relevant sources such as books, interviews, journal articles, World Bank documents, legal and policy documents regulating the overseas employment laws in Ethiopia. The data collected from both literature and legal sources were analyzed reveals that Ethiopia has limitations in regulating overseas employment with relevant governmental and non-governmental institutions, hinders the flow of remittances overseas employment. Many countries around the world have adopted ILO Convention No. 189, 190, 143 and 97 and made it part of their national laws to address the employment-related problems of their nationals employed overseas. Although these conventions are important conventions in terms of protecting the rights and safety of overseas employees, Ethiopia has not yet ratified these conventions and made them part of the country's law. Due to these and other reasons, Ethiopians overseas employees face many physical, psychological and economic problems. Ethiopia’s’ Overseas Employment Proclamation No. 1246/2021role in solving the multifaceted problems of workers is minimal. In addition, as a country, the Ethiopian government is not getting the remittance it deserves from this sector. The research has systematically identified and highlights of major substantive areas of overseas employment law that is required to undergo reformulation through repeal or amendments within the overseas employment law and policy regulatory space of laying down the foundations for a comprehensive national policy and developing an efficient and operational framework for its implementation. General, this study has examined that the role of the Ethiopian overseas employment policies and legal frameworks in terms of respecting the rights of overseas employees and generating remittances from this sector is ineffective and needs further strengthening.
INFORMAL SETTLEMENT REGULATION AND ITS HUMAN RIGHTS IMPLICATION IN ETHIOPIA: THE CASE OF DAYE TOWN, SIDAMA REGION
(Hawassa University, 2024-03) MELESE FUNTE KIMO
An Informal Settlement become sensitive issues today, Informal land deals are targeted for housing purposes. People settled informally mainly because, of imbalanced life situations mainly with the income of individuals and due to lack of getting the formal way of a residential house. These factors force people into the informality process most of the time as people who participated in an interview said. The study also addressed the challenges that can be overcome to lessen their negative effects by considering the practical situation on the part of both informal settlers and key informants. Problems connected with residential houses in the town force people into the informal way of land acquisition system and informal housing process. Controlling the expansion of informal settlements can be made effective through an available housing provision, avoiding restrictions on land transfer, and through strong land administration capacity. Homelessness is a serious human rights violation and can be the result of a lack of affordable housing, often on account of gentrification and speculation or other market forces coupled with racial or ethnic discrimination. To conduct this research the researcher employeda qualitative research approach of legal frameworks and policy of Informal Settlement Regulation and its Human Rights Implication in Ethiopia. In this regard, the study employed primary data that includes official and mandatory legal frame works of Ethiopia and policy with international law analysis, interviews, and secondary data that the researcher employed from various secondary sources which include soft laws, principles, articles, and recommendations. The finding of the study indicated that legal gaps that exist in land laws and policy problems affect human rights. Accordingly, the study recommends that amendments in land laws and policy reform should be made. As far as people with low levels of income and urban poor are concerned, the government must provide possible ways to provide legal ways to get living houses in the city.
MINIMUM CAPITAL REQUIREMENT FOR THE ESTABLISHMENT OF BANKS IN ETHIOPIA
(Hawassa University, 2024-11) MEKDES MENA TEKA
The banking sector plays a vital role in the development of the country, serving as the conduit for financial intermediation. Minimum capital requirements are essential for ensuring banks maintain a buffer against potential losses, thereby safeguarding depositors’ funds and promoting overall financial stability. These requirements are designed to enhance the resilience of banks and prevent systemic risks that could arise from inadequate capitalization. NBE sets capital requirements for banks from time to time by updating the pre-existing capital requirements to respond to both domestic needs and international regulatory standards. The study aimed to evaluate the minimum capital requirement laws and its challenges for small banks to meet the required capital in Ethiopia. In relation to the methodology, the study used a blend of both doctrinal and non-doctrinal legal research, and in addition, the purposive sampling technique was used. The study has been conducted on the basis of qualitative research techniques to analyze minimum capital requirement laws and its challenges for small banks to meet the required capital in Ethiopia. Data were collected from different sources like laws, proclamations, and directives by NBE, books, journals, and articles related with minimum capital requirements for banks. Moreover, semi-structured interviews have also been conducted with private banks managers at the Hawassa branch and NBE policy supervision department. Finally, the data collected were analyzed through the content analysis method. Based on the findings of the thesis, it is concluded that small banks, especially those started their operations recently, faced challenges to meet the required amount of capital because of the inadequate capital held by them. Based on the findings, recommendations were forwarded. So, it is highly recommended that the NBE should regularly review and adjust the laws and policies to keep pace with the changing economic conditions and launch campaigns aimed at educating the public to join the bank industry. Lastly, the NBE must instruct small banks to have continuous training programs for their staff and to use new technology to minimize costs.
MINIMUM CAPITAL REQUIREMENT FOR THE ESTABLISHMENT OF BANKS IN ETHIOPIA
(HAWASSA UNIVERSITY, 2024-11) MEKDES MENA TEKA
The banking sector plays a vital role in the development of the country, serving as the conduit for financial intermediation. Minimum capital requirements are essential for ensuring banks maintain a buffer against potential losses, thereby safeguarding depositors’ funds and promoting overall financial stability. These requirements are designed to enhance the resilience of banks and prevent systemic risks that could arise from inadequate capitalization. NBE sets capital requirements for banks from time to time by updating the pre-existing capital requirements to respond to both domestic needs and international regulatory standards. The study aimed to evaluate the minimum capital requirement laws and its challenges for small banks to meet the required capital in Ethiopia. In relation to the methodology, the study used a blend of both doctrinal and non-doctrinal legal research, and in addition, the purposive sampling technique was used. The study has been conducted on the basis of qualitative research techniques to analyze minimum capital requirement laws and its challenges for small banks to meet the required capital in Ethiopia. Data were collected from different sources like laws, proclamations, and directives by NBE, books, journals, and articles related with minimum capital requirements for banks. Moreover, semi-structured interviews have also been conducted with private banks managers at the Hawassa branch and NBE policy supervision department. Finally, the data collected were analyzed through the content analysis method. Based on the findings of the thesis, it is concluded that small banks, especially those started their operations recently, faced challenges to meet the required amount of capital because of the inadequate capital held by them. Based on the findings, recommendations were forwarded. So, it is highly recommended that the NBE should regularly review and adjust the laws and policies to keep pace with the changing economic conditions and launch campaigns aimed at educating the public to join the bank industry. Lastly, the NBE must instruct small banks to have continuous training programs for their staff and to use new technology to minimize costs
POLITICAL UPRISING AND FOREIGN DIRECT INVESTMENT IN ETHIOPIA: LEGAL PROTECTION AND COMPENSATION
(2019-06) BEHAILU BERGENA WADA
n the current globalized world, where every single action of one country or any international organization directly or indirectly; positively or negatively affects another country, FDI is considered to be one of engines of boosting economic development of both developed and developing countries in which Ethiopia is not an exception. There are different theories for and against the flow of FDI into the territory of the host country. Those which analyze in favor of it try to mention the positive effects of FDI while the opposite side criticizes the same on the ground that FDI doesn‘t play positive role in the affairs of the host country or it takes the minimal part. Sooner or later it is positively considered by the majority of academic persons and politicians. FDI is not indifferent to the domestic situations of the host country. There are different determinants which play either positively or negatively in the inflow of FDI. One of the determinants is the political environment of the recipient country. The more stable is the political situation of the host country the more likelihood of inflow of FDI will be. The holding of massive political demonstration, political violence and armed conflicts are some of features of political instability in the host country which put the host country in disadvantageous part regarding the inflow of FDI. The study is mainly devoted to be conducted due to the current political uprising which has begun mainly three years ago. Following the political uprising, several FDIs have suffered from damage. Though the response of the government, to repair the damage, is quicker, investors have welcomed it in hesitation alleging its insufficiency. There are also investors who have refused to receive the government‘s ‗financial support because of its disproportionality to their damage. The general objective sought to be achieved, in the study, is checking whether the country has tried its best to prevent or mitigate the occurrence of the damage and the response of investors on the ‗financial support‘ made by the government. To do so, the qualitative and non-doctrinal research methodology has been employed. The legal documents and other literature have been reviewed. Interview has also been conducted with the Ethiopian Investment Commission and three investors which have been selected from among the injured investments following the political uprising. The study has revealed that Ethiopian government has shown reluctance in implementing the country‘s obligation of according full protection and security. Therefore, it has come up with the recommendation that the Ethiopian government should give equal endeavor for putting the obligation into practice as that of its diligence to attract FDI.
PRIVATE COMMERCIAL DISPUTE SETTLEMENT IN ETHIOPIA: LEGAL FRAMEWORKS AND INSTITUTIONAL PRACTICES OF ARBITRATION IN ADDIS ABABA
(Hawassa University, 2024-11) MEKIT ZELEKE ALEMAYEHU
Today Arbitration has emerged as a significant mechanism for resolving commercial disputes, especially given the growing complexity of domestic and international business transactions. To meet this, Ethiopia introduced a legal reform through Proclamation No. 1237/2021. This legal reform aims to modernize Ethiopia’s arbitration legal and institutional framework by providing a governing regime and recognizing institutional arbitration practice. This thesis based the objective of critically examines the impact of this newly introduced on the commercial arbitration landscape in Ethiopia, with a particular focus on how it has shaped the development and operation of commercial arbitration institutions in Addis Ababa. It compares the current arbitration legal framework with the previous legal regime, emphasizing the Civil and Procedure Codes. In addition, the thesis assesses and identifies the practical and legal challenges that arbitration centers face following the 2021 legal reform, to achieve these objectives; the thesis employed Within the qualitative research design, the socio legal research methodological approach in a blend of both doctrinal and non-doctrinal legal research. Along with legal analysis, key informant interviews were conducted with relevant individuals and experts involved in the subject of the study and arbitration institutions included in the study. These primary sources along with secondary sources were thematically analysed and triangulated in this thesis. Accordingly, the thesis shows that while the legal reform has facilitated the development of institutional arbitration, there are significant gaps. These gaps include legal and practical. the legal is not having clear regulations for establishing arbitration centres and also the problem conflict arbitration law and other laws, the practical challenge is resources and awareness With these findings, the thesis recommends the implementation of a clearer regulatory and amending thus conflicting part of the legation, and for practical challenges investing in awareness and supporting institutional capacity to ensure a more robust and effective environment for arbitration
PRIVATE COMMERCIAL DISPUTE SETTLEMENT IN ETHIOPIA: LEGAL FRAMEWORKS AND INSTITUTIONAL PRACTICES OF ARBITRATION IN ADDIS ABABA
(HAWASSA UNIVERSITY, 2024-11) MEKIT ZELEKE ALEMAYEHU
Today Arbitration has emerged as a significant mechanism for resolving commercial disputes, especially given the growing complexity of domestic and international business transactions. To meet this, Ethiopia introduced a legal reform through Proclamation No. 1237/2021. This legal reform aims to modernize Ethiopia’s arbitration legal and institutional framework by providing a governing regime and recognizing institutional arbitration practice. This thesis based the objective of critically examines the impact of this newly introduced on the commercial arbitration landscape in Ethiopia, with a particular focus on how it has shaped the development and operation of commercial arbitration institutions in Addis Ababa. It compares the current arbitration legal framework with the previous legal regime, emphasizing the Civil and Procedure Codes. In addition, the thesis assesses and identifies the practical and legal challenges that arbitration centers face following the 2021 legal reform, to achieve these objectives; the thesis employed Within the qualitative research design, the socio legal research methodological approach in a blend of both doctrinal and non-doctrinal legal research. Along with legal analysis, key informant interviews were conducted with relevant individuals and experts involved in the subject of the study and arbitration institutions included in the study. These primary sources along with secondary sources were thematically analysed and triangulated in this thesis. Accordingly, the thesis shows that while the legal reform has facilitated the development of institutional arbitration, there are significant gaps. These gaps include legal and practical. the legal is not having clear regulations for establishing arbitration centres and also the problem conflict arbitration law and other laws, the practical challenge is resources and awareness With these findings, the thesis recommends the implementation of a clearer regulatory and amending thus conflicting part of the legation, and for practical challenges investing in awareness and supporting institutional capacity to ensure a more robust and effective environment for arbitration
PROSCRIPTION OF GROUPS OR ORGANIZATIONS AS A TERRORIST UNDER ETHIOPIAN TERRORISM LAW; A COMPARATIVE LEGAL STUDY
(2023-11) CHEMIR WOLLDE KERGA
The Ethiopian government has implemented a comprehensive legal framework to combat terrorism, including provisions for proscription of organizations or groups as terrorist entities which involves designating it as a terrorist organization, thereby making its activities illegal and subject to criminal penalties. This comparative legal study examined the proscription of organizations as terrorists under the Ethiopian terrorism law through comparative analysis. Comparative jurisdictions may differ in the extent to which they provide procedural fairness, judicial review, or mechanisms for organizations to challenge their designation as terrorists. Additionally, the analysis explores the implications of proscribing organizations as terrorists on freedom of association and freedom of expression. Accordingly, laws of U.S., Australia, and Nigeria are considered for comparison. Selection of these nations as a sample is because of universal nature of terrorism crime and as member states to UN, they reached an agreement to combat it. Additionally, they enacted laws on proscription of organizations as a terrorist and practiced it. To achieve the intended objectives the thesis employed qualitative method as an approach. After the collected primary and secondary data analysis, the study found that the Ethiopian proscription of organization as a terrorist law seeks amendment in terms of providing clear grounds to proscribe, the procedural safeguards of the organization proscribing, accountability and transparency of the proscribing body and guarantying of human rights of individual associated with the organizations.
REGULATING INFORMAL FINANCIAL INSTITUTIONS IN ETHIOPIA: THE CASE OF ‘IKUB’ IN GURAGE SOCIETY
(Hawassa University, 2024-11) HAILU NIMA
This thesis examines the legal and practical challenges of one of the most important Ethiopian informal financial institutions known as ROSCA or Ikub. These institutions play a vital role in solving financial problems among Gurage societies. While playing a key role in addressing financial issues in Gurage, many Ikubs lack auditors and do not conduct regular audits, leading to potential problems with financial transparency and accountability. In addition, there are Ikubs in Gurage that impose penalties each day due to noncompliance, even though the Ikub operates on a weekly basis. These institutions in Gurage often lack written internal bylaws, despite some having their own bylaws, which often conflict with the national laws. Moreover, this thesis found that, in most Ikub of Gurage the chairperson took full lot of Ikub without making any contributions to the entire season, which can result in the chairperson gaining unfair advantages. However, lessons from Thailand and South Africa show that a ROSCA manager does not gain any advantages besides being eligible to receive the central fund within a specified timeframe. Overall, this thesis sheds light on the complexities of informal financial institutions operating in Gurage, Ethiopia, and provides insights into the need to have a separate legal framework to govern informal financial institutions like Ikub in Ethiopia.
REGULATING INFORMAL FINANCIAL INSTITUTIONS IN ETHIOPIA: THE CASE OF ‘IKUB’ IN GURAGE SOCIETY
(HAWASSA UNIVERSITY, 2024-11) HAILU NIMA AYANTA
This thesis examines the legal and practical challenges of one of the most important Ethiopian informal financial institutions known as ROSCA or Ikub. These institutions play a vital role in solving financial problems among Gurage societies. While playing a key role in addressing financial issues in Gurage, many Ikubs lack auditors and do not conduct regular audits, leading to potential problems with financial transparency and accountability. In addition, there are Ikubs in Gurage that impose penalties each day due to noncompliance, even though the Ikub operates on a weekly basis. These institutions in Gurage often lack written internal bylaws, despite some having their own bylaws, which often conflict with the national laws. Moreover, this thesis found that, in most Ikub of Gurage the chairperson took full lot of Ikub without making any contributions to the entire season, which can result in the chairperson gaining unfair advantages. However, lessons from Thailand and South Africa show that a ROSCA manager does not gain any advantages besides being eligible to receive the central fund within a specified timeframe. Overall, this thesis sheds light on the complexities of informal financial institutions operating in Gurage, Ethiopia, and provides insights into the need to have a separate legal framework to govern informal financial institutions like Ikub in Ethiopia
REGULATING SUKUK SECURITIES IN ETHIOPIA’s CAPITAL MARKET: A COMPARATIVE ANALYSIS AND LESSONS OF THE LEGAL AND INSTITUTIONAL FRAMEWORKS
(HAWASSA UNIVERSITY, 2025-06) ABDULKERIM BEFETA MOHAMMED
Sukuk emerged as an alternative sharia-compliant financial instrument to conventional debt-based instruments. Nowadays, Sukuk is one of the flexible and fastest-growing financial products in the global financial market. In Ethiopia, despite high demand for sharia-compliant products, comprehensive regulatory frameworks for Islamic finance have not yet been developed. Besides, Ethiopia has recently introduced a capital market as an investment opportunity to provide diverse and innovative financial products for all. Following this, there is legal recognition of Sukuk. Despite this, there is no specific law that regulates Sukuk products and the current financial laws also not suitable for Sukuk in Ethiopia. This paper aims to assess the need to develop regulatory framework for Sukuk securities in Ethiopia by analyzing the successful experience of other nations. To this end, the research employed doctrinal research methodology and also comparatively analyzed the best experience of selected nations (Malaysia, Indonesia and Nigeria) to draw lessons for the successful regulation of Sukuk in Ethiopia. It has been observed that, in selected jurisdictions supportive legal and regulatory framework significantly supported the development of Sukuk. Based on the analysis, the researcher proposes legal and regulatory institutional issues. Among others, Ethiopia should modify the existing principal legislations to regulate Sukuk as a financial security, prepare detailed regulations or guidelines for Sukuk, establish a centralized Sharia advisory council and establish an appropriate forum of adjudications for the successful regulation and implementation of Sukuk. Regarding operational strategies, Ethiopia should adopt and implement the simplest and common Sukuk structures through a phased-based approach.
REGULATORY FRAMEWORK FOR FOREIGN BANK ENTRY IN ETHIOPIA: CHALLENGES AND PROSPECTS
(HAWASSA UNIVERSITY, 2024-03) MIRCHAWORK HABTAMU
Ethiopia's planned framework for foreign bank entry aims to attract foreign investment and expertise to its financial sector. While fostering competition and economic growth, the framework faces challenges in balancing the interests of domestic banks and ensuring fair competition. This study examines the regulatory framework for foreign bank entry in Ethiopia and explores the challenges and prospects associated with it. The study’s main objective is to analyze the challenges and prospects associated with the new regulatory framework currently under development. To achieve this, the study assesses the legal ramifications of allowing foreign banks to operate within Ethiopia; investigate the potential difficulties and opportunities that the new regulations might present and evaluate the Ethiopian National Bank's capacity to effectively manage and oversee the implementation of the new framework. The research adopts a qualitative research approach by relying on doctrinal legal research methods in addition to non-doctrinal methods, including interviews. This study underlines the Ethiopian government's decision to open the banking sector to foreign banks presents both opportunities and challenges. Its findings show legal gaps that have been identified including inadequate supervision of prudential requirements, lack of specific regulations for foreign branch banking, limited control by host authorities, lack of formal agreements with host countries, lack of clarity and consistency in regulations regarding foreign ownership in banks, lack of specific regulations for joint ventures, inadequate legal framework for mergers and acquisitions, and limited coordination between regulatory bodies. To address these gaps, the study raised recommendations which include enhancing regulatory oversight, developing specific regulations and guidelines, strengthening the regulatory framework, establishing formal agreements with host countries, providing clarity and consistency in regulations, establishing clear guidelines and regulations, developing a comprehensive legal and regulatory framework, and establishing a working relationship between regulatory bodies.
THE ETHIOPIAN MICROINSURANCE REGULATORY FRAMEWORKS: A CRITICAL ANALYSIS
(HAWASSA UNIVERSITY, 2024-06) BEHAILU ALEBACHEW
Micro insurance is a novel financial strategy that recently evolved for the purpose of providing appropriate risk control mechanisms for low income-segment of the society. Our country Ethiopia is characterized by extreme levels of poverty exacerbated by the fragmented and under-developed state of agriculture. Illness, death and drought are the biggest risks in Ethiopia. Even though, micro insurance is understood to be an effective tool for the protection of the poor, the micro insurance industry of the country is in infant stage and its regulatory frameworks are marred by a lot of regulatory inefficiencies .This study critically assessed the existing regulatory frameworks of Ethiopian micro insurance industry. The study applies doctrinal and non-doctrinal research approach. In order to explore the different issues included in the research, both primary and secondary data are used .Key informant interviews with carefully chosen from National Bank of Ethiopia, Ethiopian Insurance Corporation and former Omo Micro Finance Institution S.C current Omo Bank S.C personnel and knowledgeable specialists and relevant laws were employed to gather the study's primary data. The secondary data were gathered from various published and unpublished publications, including internets, scholarly works, books and journal articles. Both descriptive and explanatory methods were used to analyze the data. Based on the findings, although, the NBE has enacted micro insurance business licensing, license renewal and product approval Directive No. SMIB/3/2020, its regulatory frameworks are marred by a lot of regulatory inefficiencies .Some of the notable challenges of the regulatory framework include absence of separate , consolidated, specialized , adequate and fragmented structure of the regulatory frameworks .The researcher recommends regulatory approach shift from functional and institutional approach to only institutional approach and legislative amendments for the introduction of separate, specialized, comprehensive, adequate and consolidated micro insurance regulatory frameworks which will enables the coming of separate and specialized micro insurance companies and to enhance micro insurance penetration in the country.
THE LEGAL FRAME WORK OF INTEREST FREE MICROFINANCE INSTITUTIONS IN ETHIOPIA: A COMPARLATIVE STUDY
(Hawassa University, 2025-11-04) ABDULSEMED BEDEWI NURI
This study endeavors to examine the legal regulations governing interest-free microfinance institutions in Ethiopia with comparisons of Sudan, Egypt, and Malaysia. The research method employed is comparative doctrinal legal research design, which involves scrutinizing secondary data sources such as black and white documents. The qualitative data was analyzed using content analytical techniques that were consistent with the study's objectives. The findings of this study revealed that Ethiopia's legal framework for interest-free microfinance institutions has significant gaps and differences when compared to Egypt, Sudan, and Malaysia. These differences include the specificity of regulations, variations in regulatory oversight and licensing requirements, and the legal basis for interest-free microfinance. Malaysia stands outwith its dedicated legal framework for Islamic finance principles. Addressing these gaps wouldinvolve considering broader legal frameworks, enhancing regulatory oversight, and aligning with international standards. By doing this, Ethiopia can strengthen its legal framework for interestfree microfinance institutions, promoting access to financial services and local economic growth. Therefore, the legislative structure of interest-free microfinance institutions in Ethiopia exhibits gaps and weaknesses when compared to Sudan, Egypt, and Malaysia. These gaps include the lack of specificity in regulations, variations in regulatory oversight effectiveness and capacity, differences in licensing requirements, and a narrower legal basis. These gaps can pose challenges for interest-free microfinance institutions in terms of compliance, clarity, supervision, and consumer protection. To address these weaknesses, Ethiopia should consider enhancing regulatory capacity, aligning with international standards, promoting collaboration, and expanding the scope of the legal framework. Furthermore, Ethiopia can establish a more robust and effective legal framework that promotes the development and growth and of interest-free micro - finance institutions, thereby contributing to financial inclusion and long-term economic progress. Furthermore; it's suggested that National Bank of Ethiopia revise its means of supervising/regulating operations related to free- interest-based micro-financing optimizing outreach effectiveness hence promoting successful establishment/development thereof.
THE LEGAL GROUND OF PRICE REGULATION IN ETHIOPIA
(Hawassa University, 2024-06) REDIATE HAILEYESUSE KEBEDE
Price affects the society, the market’s supply and demand equilibrium, choice of traders, over all activity of trade and economy of the country. Because of its wide effect, some suggested restrictions to direct the economy in certain desired direction and some others oppose it by mentioning its negative consequences. However, there has not been agreement as to whether the negative effects weigh the positive impact. So, even though price regulation has negative and positive consequences, many countries including Ethiopia follow the policy in order to achieve a certain objective. And this government intervention in price regulation needs legal bases to manage its consequences. The aim of this research paper was to assess the legal base of price regulation in Ethiopia legal system. To conduct this study, the researcher used a doctrinal and qualitative research method to explain the legal ground of price control in Ethiopia. Primarily data like relevant international and national laws that deal with the issue of price regulation in Ethiopia collected, analyzed, interpreted and examined. Moreover, as secondary source of data statutory materials, regulated goods and services practical cases or case reports, relevant literatures related with the subject matter both from foreign and domestic sources like books, journals, unpublished materials and others collected from library and internet sources and analyzed alongside major conceptual, legal and practical framework of price regulation in Ethiopia. In addition, an effort has been made to collect other primary data. Under the primary sources in-depth interviews with people from different categories (academicians, government officials, consumers and traders) who have knowledge and information about an issue have been conducted. In addition questioners have been conducted by randomly selecting 50(fifty) people from the public. Based on the research finding, there are some gaps, when the practices evaluated by the law like lack of standard and regulating price without considering the interest of the stake holders in the business. For the above problems to exist there are different underlying factors. Among those factors lack of legal framework which stipulate the standard and lack of institutional frame work that establish the system to be effective. Based on this, the researcher recommends that to overcome the mentioned problems, the government should issue a legislation which set a standard for appropriate function of price regulation policy
THE NEED TO INTRODUCE VIRTUAL CURRENCYIN ETHIOPIA: DRAWING LESSONS FROM SOME JURISDICTIONS
(Hawassa Universityth, 2024-03) KAMIL NASSIR MOHAMMED
Though physical cash is still widely circulating, Virtual currencies are under more scrutiny than ever as those governments, global corporations, and banks that make decisions begin to take them seriously as a solution for the future. The role of financial intermediaries such as banks in guaranteeing the value of the currency is not needed in cryptocurrency transactions. Due to convenience to account Cryptocurrencies & transact it or otherwise, the popularity of Cryptocurrency is rising day to day in Ethiopia. Ethiopian government, however, warn against the use of Virtual currencies. Because of Virtual Currencies anonymous nature the ban will not be achieved. In addition banning is the cutting of innovation. Virtual Currencies has a number of advantages with their own risks too. The natures and the scope of applications of Virtual Currencies raise important legal compliance issues.To these issues traditional fait money regulations are not always compatible to Virtual currencies. This research tries to address the need of introducing Virtual Currencies, by showing prospects and challenges of introducing Virtual Currencies, in Ethiopia. To address the issue the study has employed doctrinal research to pin point and analyze risks and opportunities of introducing Virtual Currencies and to address the Laws in Ethiopia in ways of introducing Virtual currencies, by analyzing lessons of some jurisdictions. Though it has few risks, introducing Virtual currency is beneficial to the country in collecting tax, protecting the rights of the public, promoting innovation and to adopt central bank digital currency. Therefore, the government should modify or enact new laws and policies in the country to address the growth and effects of using Virtual Currencies, andto introducing Virtual Currencies in Ethiopia.