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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.

InvestmentNew
Nov 1, 2022

Establishment and Operation of Treasury Bonds (Directive No. 956/2022)

This directive establishes and outlines the operational procedures for Treasury Bonds in Ethiopia, setting guidelines for their issuance, purchase, transfer, redemption, and penalties for non-compliance. It aims to enhance bank participation in supporting the Ethiopian economy.

Who's affectedBanks operating in Ethiopia, excluding the Development Bank of Ethiopia.
ActionBanks must comply with the monthly reporting, purchase, and settlement requirements for Treasury Bonds as outlined in the directive.
National Bank Of Ethiopia · 956/2022View source
FintechAmendment
Oct 5, 2022

Licensing, Credit Information and Examination Fees of Microfinance Institutions (Directive No. 951/2022)

This directive revises and introduces new fees for services provided by the National Bank of Ethiopia to microfinance institutions, including licensing, credit information, and examination fees. It also repeals specific articles from previous directives.

Who's affectedMicrofinance institutions operating in Ethiopia.
ActionMicrofinance institutions must pay the specified fees for new licenses, renewals, branch licenses, and examination services as outlined in the directive. They must also ensure their annual license renewals are completed between August 1 and October 31.
National Bank Of Ethiopia · 951/2022View source
InvestmentAmendment
Oct 4, 2022

Licensing and Credit Information Fees of Capital Goods Finance Companies (Directive No. 950/2022)

This directive establishes new licensing and credit information fees for capital goods finance companies in Ethiopia and repeals specific articles from previous directives.

Who's affectedCapital goods finance companies seeking new licenses, renewals, replacements, branch licenses, or credit information from the National Bank of Ethiopia.
ActionCapital goods finance companies must pay the specified fees for licenses, renewals, replacements, and credit information requests as detailed in the directive.
National Bank Of Ethiopia · 950/2022View source
TradeNew
Oct 4, 2022

Fees on Cash Processing, Sale of Gold/Silver and Cost of Boxes (Directive No. 948/ 2022)

This directive establishes fees for the sale of gold and silver coins, as well as fees for cash processing and the cost of boxes for currency transportation.

Who's affectedArtisans with relevant mine and lapidary trade licenses, user banks depositing unsorted or deteriorated notes, and banks applying for currency supply.
ActionBanks and relevant artisans should familiarize themselves with the new fee structures for gold/silver sales and cash processing.
National Bank Of Ethiopia · 948/2022View source
FintechNew
Oct 3, 2022

Ethiopian Automated Transfer System (EATS) Fees and Penalties (Directive No. 943/2022)

This directive establishes fees, penalties, and incentives for the Ethiopian Automated Transfer System (EATS) to ensure its safe, efficient, and reliable operation, and to improve service quality. It outlines specific charges for joining, membership, various transaction types, e-token services, and penalties for non-compliance or delays, alongside incentives for early or high-volume settlements.

Who's affectedFinancial institutions participating in the Ethiopian Automated Transfer System (EATS) and the Addis Ababa Check Clearing Office (ACCO).
ActionParticipants must pay applicable fees and adhere to the rules to avoid penalties. New applicants must pay the joining fee.
National Bank Of Ethiopia · 943/2022View source
InvestmentAmendment
Oct 3, 2022

Licensing, Credit Information and Examination Fees on Banks (Directive No. 952/2022)

This directive revises and introduces new fees for banking services provided by the National Bank of Ethiopia, covering licensing, credit information, and examination.

Who's affectedAll banks operating in Ethiopia, including those seeking new licenses, renewals, replacements, or operating branches.
ActionBanks must pay the new fees for licensing, renewals, replacements, branch licenses, examinations, and credit information as specified in the directive.
National Bank Of Ethiopia · 952/2022View source
FintechAmendment
Oct 3, 2022

Fees for National Bank’s Payment System Oversight, Licensing, and Authorization Services (Directive No. 944/2022)

This directive establishes new and revised fees for the National Bank of Ethiopia's payment system oversight, licensing, and authorization services for payment instrument issuers and payment system operators.

Who's affectedEntities licensed or authorized by the National Bank of Ethiopia to act as payment instrument issuers or payment system operators, including banks, microfinance institutions, and national switches.
ActionPayment instrument issuers and payment system operators must review the new fee structure and ensure timely payment for licensing, renewal, and oversight services.
National Bank Of Ethiopia · 944/2022View source
OtherNew
Sep 11, 2022

Pharmacovigilance Directive No. 932/2022

This directive establishes a pharmacovigilance system for monitoring adverse drug events, quality defects, and medication errors related to medicines. It outlines reporting procedures, investigation processes, and regulatory actions to ensure the safety, quality, and efficacy of medicines in Ethiopia. The directive also defines the roles and responsibilities of various stakeholders, including healthcare facilities, regulatory bodies, healthcare professionals, patients, and market authorization holders.

Who's affectedManufacturers, importers, distributors, healthcare professionals, healthcare facilities, and patients involved with medicines in Ethiopia.
ActionHealthcare professionals and facilities must report adverse drug events according to the procedures outlined in this directive. Patients are encouraged to report any suspected adverse events.
Ethiopian Food and Drug Authority · 932/2022View source
FintechAmendment
Jun 9, 2022

Reserve Requirement – 8th Replacement Directive No. 915/2022

This directive replaces the 7th Replacement Directive concerning reserve requirements for banks operating in Ethiopia. It mandates banks to maintain specific reserve balances with the National Bank of Ethiopia (NBE) and outlines computation methods, reporting requirements, and penalties for non-compliance.

Who's affectedBanks operating in Ethiopia are directly affected by reserve maintenance and reporting requirements.
ActionBanks must open and maintain two specific Birr accounts with the National Bank of Ethiopia and comply with the specified reserve ratio requirements.
National Bank Of Ethiopia · 915/2022View source
FintechNew
Dec 2, 2021

Risk Based Internal Audit (Directive No. 196/2021)

This directive establishes a risk-based internal audit methodology for banks operating in Ethiopia, aiming to enhance the soundness of the banking system, improve the effectiveness of internal control, and strengthen corporate governance.

Who's affectedAll banks operating in Ethiopia.
ActionBanks must adopt and understand the importance of the risk-based internal audit methodology throughout their organization.
National Bank Of Ethiopia · 196/2021View source
InvestmentNew
Dec 2, 2021

Manner of Relinquishing Shareholdings of Foreign Nationals of Ethiopian Origin in a Bank or an Insurer (Directive No. 194/2021)

This directive outlines the procedures for foreign nationals of Ethiopian origin to relinquish their shareholdings in Ethiopian banks and insurance companies. It specifies the timeline for surrendering shares, the valuation method (par value), dividend payments, and the process for selling the relinquished shares through public auction. The directive also details reporting requirements for financial institutions to the National Bank of Ethiopia.

Who's affectedForeign nationals of Ethiopian origin holding shares in privately owned Ethiopian banks and insurers, and the banks and insurers themselves.
ActionForeign nationals of Ethiopian origin who hold shares in Ethiopian banks or insurers must surrender their share certificates to the issuing institution at par value within 60 calendar days from the first notice publication, and banks/insurers must facilitate this process and sell the shares.
National Bank Of Ethiopia · 194/2021View source
InvestmentNew
Dec 2, 2021

Monitoring the Nationality of Shareholders of a Bank (Directive No. 195/2021)

This directive establishes mechanisms for banks to monitor and ensure that their shareholders are exclusively Ethiopian nationals or institutions wholly owned by Ethiopian nationals, in accordance with existing banking laws.

Who's affectedBanks operating in Ethiopia and their shareholders.
ActionBanks must establish and notify the National Bank of a mechanism to ensure all shareholders are Ethiopian nationals or companies fully owned by Ethiopian nationals, and report any non-compliance.
National Bank Of Ethiopia · 195/2021View source
FintechNew
Dec 1, 2021

Foreign Currency Intermediation by Banks (Directives No. 191/2021)

This directive establishes rules for banks in Ethiopia to engage in foreign currency intermediation, allowing them to borrow from external sources and lend to foreign currency generating activities within Ethiopia. It outlines conditions for external borrowing, utilization of acquired foreign currency, and prudential and reporting requirements for banks.

Who's affectedBanks operating in Ethiopia that engage in foreign currency intermediation.
ActionBanks must develop and implement policies to manage foreign exchange risks associated with foreign currency intermediation and ensure compliance with all stipulated requirements, including reporting.
National Bank Of Ethiopia · 191/2021View source