Ethiopia’s parliament on Tuesday approved legislation allowing foreign investment in the country’s banking sector.

The law, first drafted in June, permits foreign ownership of Ethiopian banks but caps such stakes at 40%, according to a copy of the legislation reviewed by Reuters. The government hopes the move will attract foreign capital to one of Africa’s largest economies.

The reform is part of a broader liberalization agenda spearheaded by Prime Minister Abiy Ahmed since he assumed office in 2018.

Ethiopia’s banking industry is currently dominated by the state-owned Commercial Bank of Ethiopia. However, Abiy’s economic plans have faced setbacks from a two-year civil war, a weakened currency, and sluggish reforms.

While the majority of lawmakers supported the new law, some raised concerns that domestic banks might struggle to compete with foreign entrants. Central Bank Governor Mamo Mihretu countered that increased competition would strengthen local banks.

Ethiopia’s economic challenges have been compounded by a severe foreign currency shortage and persistent inflation. In July, the country secured a $3.4 billion bailout from the International Monetary Fund (IMF) after agreeing to float its currency. The devaluation saw the Ethiopian birr lose nearly a third of its value against the U.S. dollar.

The IMF bailout aims to stimulate growth in Ethiopia’s private sector, enabling increased government spending on health, education, and infrastructure projects.