Regulatory Alerts2025-07-01
Dematerialization of Government and NBE Securities Directive No. MFAD/001/2025
The National Bank of Ethiopia issued Directive No. MFAD/001/2025 to mandate the transition of all physical government and National Bank securities into electronic book-entry records held within a Central Securities Depository. The directive establishes a structured dematerialization process requiring CSD members to facilitate investor onboarding, verify physical certificates, and maintain segregated or omnibus accounts while the National Bank oversees data reconciliation and declares an official dematerialization date. This electronic conversion ensures definitive ownership proof, streamlines trading and settlement, protects pledged securities through marked liens, and mandates the eventual destruction of physical certificates after a two-year transitional period.