Regulatory AlertsEthiopia: fintech & payments regulation
RegulatedNBE regulates payments via ONPS directives; banking liberalized under Proclamation 1360/2025
- Lead regulator
- National Bank of Ethiopia (NBE)
- Also involved
- None identified in source documents
- Core law
- Proclamation No. 1360/2025 (Banking Business) & ONPS Directives
- Entry capital
- —
- Approval timeline
- —
- Customer assets
- —
- Data protection
- —
- Sandbox
- No
The National Bank of Ethiopia (NBE) is the sole regulator for payment systems and banking. Proclamation 1360/2025 liberalized the banking sector to foreign investment, while ONPS/10/2025 tightened capital and interoperability rules for payment instrument issuers. The regulatory environment is evolving rapidly with new directives on microinsurance and Franco Valuta imports.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Payment processing / gateway | LicencePayment Instrument Issuer[1] ONPS/10/2025 mandates stricter capital and interoperability | — | — | National Bank of Ethiopia |
| E-money & wallet issuance | LicencePayment Instrument Issuer[1] Covered under Payment Instrument Issuer framework | — | — | National Bank of Ethiopia |
| Domestic money transfer | LicencePayment Instrument Issuer[1] Domestic transfers fall under payment instrument issuance | — | — | National Bank of Ethiopia |
| Cross-border remittance | LicencePayment Instrument Issuer[2] Cross-border handled via designated entities under FVD/01/2026 | — | — | National Bank of Ethiopia |
| Agent network | LicenceMicroinsurance Agent[3] Specific licensing for microinsurance agents under SMIB/4/2026 | — | — | National Bank of Ethiopia |
| Open banking / account information | Uncertainverify with regulator Interoperability mandated but specific open banking regime unclear | — | — | — |
| Foreign-exchange services | LicencePayment Instrument Issuer[4] SEZ branches must provide mandatory FX services | — | — | National Bank of Ethiopia |
New — what changed recently
- 2026-05-29Directive FVD/01/2026 — Established unified framework for Franco Valuta imports with digital tracking[2]
- 2026-03-25Directive SMIB/4/2026 — Created licensing framework for microinsurance agents[3]
- 2025-05-23Directive ONPS/10/2025 — Amended payment issuer rules with stricter capital and interoperability mandates[1]
- 2025-03-12Proclamation No. 1360/2025 — Opened banking sector to foreign investment with strict ownership rules[5]
Market-entry checklist
- 1Secure NBE Payment Issuer LicenseApply under ONPS/10/2025 framework meeting new capital requirements.
- 2Ensure System InteroperabilityDesign technical architecture to comply with NBE interoperability mandates.
- 3Verify Foreign Ownership ComplianceAdhere to Proclamation 1360/2025 ownership caps if foreign investment is involved.
- 4Register as Microinsurance AgentObtain specific license under SMIB/4/2026 if offering insurance-linked services.
Sources
- Oversight of the National Payment System: Licensing and Authorization of Payment Instrument Issuer (Amendment) Directive No. ONPS/10/2025 · 2025-05-23
- Import on Franco Valuta Directive FVD/01/2026 · 2026-05-29
- SMIB/4/2026 Licensing and Supervision of Microinsurance Agents · 2026-03-25
- Requirements for Licensing a Bank Branch to Operate in Special Economic Zones · 2026-01-06
- Banking Business Proclamation No. 1360/2025 · 2025-03-12