ETHIOPIA: The National Bank of Ethiopia (NBE) issued a new directive that mandates all insurance and Takaful operating firms to invest a minimum 15% of its net income in Development Bank Bonds based on its financial position on the 30th June 2025. There are five insurance companies in Ethiopia authorized to offer Takaful through window operations, while Amana Insurance is preparing to operate as the country’s first Takaful operator.
The NBE said this bond investment must be complied with by the 31st January 2026. The NBE also added that the bonds will have a maturity period of three years starting from the issue date and will involve paying a bond rate of at least two percentage points higher than the minimum interest rate paid on the saving deposit at the time of issuance, and the interest shall be paid annually.
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