October 2022

Capitalizing Reserves: Basics that You Need to Know

A capitalizing reserve is one of the mechanisms of increasing capital in share companies. In simple terms, it is the conversion of the reserves of the companies into shares (equity). But if no new money is not injected into the company, how can we say that it is a means to increase the capital of...
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Legal Update on Minimum Paid-up Capital for an Insurance Company Directives Number SIB/57/2022

Introduction On September 15, 2022, the National Bank of Ethiopia issued Directive No. SIB 57/2022  on Minimum Paid-up Capital for Insurance Company (the Directive)  which replaces Minimum Paid-up capital for Insurers Directive Number 34/2013.   Increased Minimum Paid-up Capital RequirementGeneral Insurance License A general insurance license now requires 400 million birr as the minimum paid-up...
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