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Stay ahead of Ethiopia's policy changes

Government directives and proclamations, summarized in plain language. Built for business owners, founders, and finance professionals.

TradeNew
May 29, 2026

FVD/01/2026 – IMPORT ON FRANCO VALUTA

This directive establishes a unified legal framework for Franco Valuta transactions, aiming to prevent foreign exchange abuse and illicit trade practices by setting clear rules for eligible users, permitted goods, documentation, and digital control systems. It also repeals a specific article from a previous directive (FXD/01/2024).

Who's affectedImporters, investors, manufacturers, traders, government institutions, NGOs, diplomatic corps, and individuals involved in transactions where foreign exchange from the domestic banking system is not payable.
ActionBusinesses and individuals intending to import goods on a Franco Valuta basis must review the directive, ensure they meet the eligibility criteria, and gather the specified supporting documents for their specific type of import.
NBE · FVD/01/2026View source
TradeAmendment
May 25, 2026

FXD/05/2026 – AMENDMENT TO FOREIGN EXCHANGE DIRECTIVE NO. FXD/01/2024

This directive amends Foreign Exchange Directive No. FXD/01/2024 by authorizing commercial banks to approve letters of credit and cash against documents for institutions holding foreign currency or retention accounts, without prior approval from the National Bank of Ethiopia. It also allows these institutions to initiate goods for shipment prior to bank approval, with payment processing subject to document verification.

Who's affectedImporters and exporters who hold foreign currency accounts or retention accounts.
ActionBusinesses holding foreign currency or retention accounts should familiarize themselves with the updated approval processes for letters of credit and cash against documents for trade-related shipments.
NBE · FXD/05/2026View source
TaxNew
Apr 17, 2026

Value Added Tax Refund Determination Directive

This directive outlines the conditions and procedures for Value Added Tax (VAT) refunds for registered persons, including specific provisions for zero-rated transactions, expedited refunds, and refunds for exempt entities. It also details the documentation required, the refund processing system based on risk assessment, and penalties for non-compliance.

Who's affectedBusinesses registered for Value Added Tax (VAT) in Ethiopia, including exporters, manufacturers, and entities eligible for VAT exemptions.
ActionBusinesses should review the directive to understand the specific documentation and procedures required to claim VAT refunds, and ensure compliance with all outlined requirements.
Ministry of Revenues · 1132/2026View source
OtherNew
Mar 25, 2026

SMIB/4/2026 LICENSING AND SUPERVISION OF MICROINSURANCE AGENTS

This directive establishes the licensing, regulation, and supervision requirements for individuals and entities acting as microinsurance agents in Ethiopia. It outlines the eligibility criteria, application processes, responsibilities, and operational restrictions for microinsurance agents and providers to facilitate the growth of the microinsurance sector.

Who's affectedMicroinsurance agents (both individual and corporate), microinsurance providers, and insurance brokers/agents engaging in microinsurance intermediary services.
ActionEntities and individuals intending to act as microinsurance agents must apply for a license from the National Bank of Ethiopia by meeting the specified eligibility criteria, completing required training, and submitting all necessary documentation and fees.
NBE · SMIB/4/2026View source
OtherNew
Mar 25, 2026

SIB/64/2026 – EXTERNAL AUDITOR OF AN INSURANCE COMPANY

This directive establishes requirements for the appointment, selection, and responsibilities of external auditors for insurance companies in Ethiopia. It aims to ensure the accuracy and reliability of financial statements, enhance corporate governance, and improve the effectiveness of risk-based supervision.

Who's affectedInsurance companies and their appointed external auditors operating in Ethiopia.
ActionInsurance companies must ensure their selected external auditors meet the licensing, qualification, independence, and experience requirements outlined in the directive, and submit approval requests to the National Bank within specified timelines.
NBE · SIB/64/2026View source
InvestmentAmendment
Mar 25, 2026

SIB/63/2026 – REQUIREMENTS FOR PERSONS WITH SIGNIFICANT INFLUENCE IN AN INSURANCE COMPANY

This directive establishes 'fit and proper' criteria for persons with significant influence in insurance companies, including shareholders, directors, chief executive officers, and senior executive officers. It outlines requirements for knowledge, experience, integrity, and financial soundness, and mandates National Bank of Ethiopia approval for certain appointments and shareholdings. The directive also details ongoing fitness tests, notification requirements, whistleblowing policies, and submission procedures for applications and relevant documents. It repeals Directive No. SIB/32/2012.

Who's affectedInsurance companies and individuals seeking or holding significant influence roles (shareholders, directors, CEOs, senior executives) within them.
ActionInsurance companies must ensure their persons with significant influence meet the 'fit and proper' criteria and establish a corresponding policy. Individuals must comply with application requirements and disclose relevant information to the National Bank of Ethiopia.
NBE · SIB/63/2026View source
OtherNew
Mar 25, 2026

SIB/62/2026 LICENSING OF INSURANCE BROKER

This directive outlines the requirements and procedures for licensing insurance brokers in Ethiopia, including establishment, qualifications, responsibilities, and penalties for non-compliance.

Who's affectedIndividuals and limited liability partnerships seeking to operate as insurance brokers in Ethiopia.
ActionEntities intending to operate as insurance brokers must review the licensing requirements, ensure they meet the specified conditions, and submit the required documentation to the National Bank of Ethiopia.
NBE · SIB/62/2026View source
TradeAmendment
Feb 11, 2026

FXD/04/2026 – AMENDMENT TO FOREIGN EXCHANGE DIRECTIVE NO. FXD/01/2024

This directive amends Foreign Exchange Directive No. FXD/01/2024 to relax foreign exchange administration, enhance market development, and boost business confidence by modifying rules for foreign currency accounts, forward exchange dealings, outbound investments, and foreign guarantees.

Who's affectedBanks, foreign companies, service exporters, and individuals engaging in foreign exchange transactions, including those dealing with foreign currency accounts, forward exchange, outward investments, and remittances.
ActionReview and comply with the updated regulations regarding foreign exchange transactions, account openings, outward investments, and remittance procedures as detailed in the amended directive.
NBE · FXD/04/2026View source
TradeAmendment
Jan 16, 2026

The Ethiopian Customs Valuation (Amendment ) Directive

This directive amends the Ethiopian Customs Valuation Directive No. 1080/2017 to enhance transparency and clarify procedures for importers submitting additional supporting documents, aligning national customs valuation with WTO agreements.

Who's affectedImporters and customs declarants involved in international trade into Ethiopia.
ActionReview the amended directive to understand new procedures for submitting supporting documents and potential requirements for additional information during customs valuation.
Ministry of Revenues · 1123/2018View source
FintechAmendment
Jan 9, 2026

NBE/INT/13/2026 INTEREST RATES (AS AMENDED)

This directive amends previous interest rate directives, allowing banks to freely determine their deposit and lending interest rates, subject to reporting requirements to the National Bank of Ethiopia.

Who's affectedBanks licensed by the National Bank of Ethiopia.
ActionBanks must set and report their deposit and lending interest rates in writing according to the specified criteria and timelines.
NBE · INT/13/2026View source
FintechNew
Jan 6, 2026

SBB/99/2026 -REQUIREMENTS FOR LICENSING A BANK BRANCH TO OPERATE IN SPECIAL ECONOMIC ZONE

This directive outlines the requirements for licensing a bank branch to operate in a Special Economic Zone (SEZ) in Ethiopia, covering application criteria, operational requirements, and restrictions. It aims to ensure proper financial service delivery within SEZs to support their development.

Who's affectedBanks, including private, state-owned, foreign subsidiaries, and foreign branches, seeking to establish operations within Ethiopia's Special Economic Zones.
ActionBanks intending to operate in a Special Economic Zone must ensure their branches are licensed by the National Bank and meet specific criteria related to market share, capital adequacy, liquidity, non-performing loans, and foreign exchange services. They must also adhere to all applicable regulatory requirements.
NBE · SBB/99/2026View source
TradeAmendment
Oct 30, 2025

Oil Seeds and Pulses Direct Trading (Amendment) Directive

This directive amends the Oil Seeds and Pulses Direct Trading Directive No. 1026/2024 by replacing Article 6 regarding payment procedures and modifying sub-articles 4 and 5 of Article 8 concerning fund deposits and export permit acquisition. It also renumbers sub-articles in Article 15.

Who's affectedExporters and Suppliers involved in the direct trading of oil seeds and pulses.
ActionExporters and Suppliers must adhere to the new payment and fund transfer procedures outlined in the amended Articles 6 and 8, and obtain necessary permits after fulfilling trading obligations.
Ministry of Trade and Regional Integration · 1115/2025View source
TaxAmendment
Jul 24, 2025

A Directive to amend Tax Invoices Usage and Administration

This directive amends the Tax Invoices Usage and Administration Directive No. 165/2021, mandating the inclusion of a unique QR code on all tax invoices and specifying requirements for taxpayers with multiple business activities and for printing enterprises. It also outlines transitional provisions for existing invoice stock.

Who's affectedTaxpayers with multiple business lines or locations, and printing enterprises engaged in issuing tax invoices.
ActionPrinting enterprises must obtain permission from the tax authority before printing invoices, incorporate unique QR codes as specified, and comply with data security and reporting requirements. Taxpayers with unused old invoices have six months to use them, after which they must be reported and disposed of.
Ministry of Revenues · N/AView source
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