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Ethiopia: fintech & payments regulation

Regulated

Ethiopia fintech & payments: NBE licensing under 2025 Proclamations & ONPS directives

Lead regulator:
National Bank of Ethiopia
Key law:
Proclamation No. 1359/2025; Proclamation No. 1360/2025
Last updated:
2026-07-12

The National Bank of Ethiopia (NBE) serves as the sole primary regulator for fintech and payment services, having been reconstituted as an autonomous institution under Proclamation No. 1359/2025. The regulatory framework is anchored by Proclamation No. 1360/2025, which governs banking institutions and opens the sector to foreign investment while maintaining strict oversight.

Payment activities are regulated through specific directives, notably the Licensing and Authorization of Payment Instrument Issuer framework (amended by ONPS/10/2025), which imposes stricter capital requirements and interoperability mandates. All entities issuing payment instruments or operating payment systems must obtain NBE licensing and adhere to equity investment modalities.

The regulatory environment is characterized by a push for digitalization and foreign exchange liberalization, evidenced by recent directives on Franco Valuta imports and banking operations in Special Economic Zones. The NBE maintains tight control over shareholding caps and fit-and-proper assessments for all licensed financial entities.

Who regulates

  • National Bank of Ethiopia

    Primary supervisor for banking, payments, and financial institutions; autonomous institution accountable to the Prime Minister.

    [1]

Core laws & rules

  • National Bank of Ethiopia Proclamation (2025)

    Reconstitutes the NBE as an autonomous institution directly accountable to the Prime Minister, mandating price stability as its primary objective.

    [1]

  • Banking Business Proclamation (2025)

    Establishes the legal framework for licensing, supervising, and resolving banking institutions, formally opening the domestic banking sector to foreign investment with strict ownership limits.

    [2]

Licensing & registration

  • Payment Instrument Issuer

    Entities must be licensed under the ONPS framework, subject to stricter capital requirements, shareholding caps, and interoperability mandates as amended in 2025.

    [3]

  • Banking Business

    Licensing and renewal for domestic banks, foreign branches, and representative offices require strict fit-and-proper assessments for promoters and project managers.

    [4]

Restrictions & warnings

  • Strict shareholding caps and fit-and-proper assessments apply to all banking and payment entities; foreign investment is permitted but regulated under Proclamation 1360/2025.

    [2][3]

  • Bank branches in Special Economic Zones must exclusively serve zone residents and provide mandatory foreign exchange services.

    [5]

Direction of travel

  • The regulatory direction favors digitalization and foreign exchange liberalization, with new directives enabling digital tracking of imports and streamlined licensing for financial agents.

    [6][7]

Sources

  1. National Bank of Ethiopia Proclamation No. 1359/2025 · 2025-02-04
  2. Banking Business Proclamation No. 1360/2025 · 2025-03-12
  3. Oversight of the National Payment System: Licensing and Authorization of Payment Instrument Issuer (Amendment) Directive No. ONPS/10/2025 · 2025-05-23
  4. Requirements for Licensing and Renewal of Banking Business and Representative Office · 2025-06-25
  5. Requirements for Licensing a Bank Branch to Operate in Special Economic Zones · 2026-01-06
  6. Import on Franco Valuta Directive FVD/01/2026 · 2026-05-29
  7. SMIB/4/2026 Licensing and Supervision of Microinsurance Agents · 2026-03-25

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This guide is compiled automatically from 7 primary-source documents published by Ethiopia's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.