Fintech & payments regulation in Ethiopia (2026)

Legal framework

National Payment System Proclamation No. 718/2011 (as amended by Proclamation No. 1282/2023), administered by the National Bank of Ethiopia (NBE), implemented through the Licensing and Authorization of Payment Instrument Issuer Directive (originally ONPS/01/2020, amended by Directive No. NPS/10/2025) and the Payment System Operators Directive.

Key points: digital payments & fintech in Ethiopia

1. 01Statutory basis & regulator

   The National Payment System Proclamation No. 718/2011, amended by Proclamation No. 1282/2023, makes the National Bank of Ethiopia the sole authority for licensing/authorising payment instrument issuers and payment system operators; the amendment also opened the sector to foreign investment.

   nbe.gov.et nbe.gov.et

2. 02Payment Instrument Issuer (e-money) licence

   Mobile money and e-wallet providers (e.g. M-Birr, HelloCash, CBE-Birr, Telebirr) are licensed as Payment Instrument Issuers under Directive ONPS/01/2020, now amended by Directive No. NPS/10/2025; issuers may offer cash-in/out, transfers, domestic payments, bill payment and inbound remittances, plus micro-credit/savings/insurance with NBE approval.

   nbe.gov.et thereporterethiopia.com

3. 032025 amendment: capital, limits, governance

   Directive No. NPS/10/2025 (in force from 12 May 2025) raises minimum paid-up capital to ETB 100 million (existing holders must comply by June 2027), sets daily e-money transaction limits of ETB 300,000 / balance ETB 150,000, and imposes executive-experience requirements on issuers.

   x.com addisinsight.net

4. 04Payment System Operators regime

   A separate licensing/authorisation track exists for Payment System Operators (switches, gateways, processors) under the same proclamation and NBE's Payment System Operators Directive, distinct from instrument issuers.

   nbe.gov.et aaclo.com

5. 05Instant-payment rail & interoperability

   EthSwitch (the national switch, co-owned by NBE and banks) operates EthioPay, the National Instant Payment System, supporting real-time account-to-account and wallet-to-wallet transfers, QR and alias-based payments; the 2025 directive mandates interoperability among mobile money wallets and participation in the instant-payment system.

   addisinsight.net finextra.com

6. 06Open banking & BNPL gap

   There is no dedicated open-banking mandate or standalone BNPL regulation in Ethiopia; BNPL and similar credit offerings would fall under general payment/credit and micro-credit provisions subject to NBE approval rather than a bespoke framework.

   nbe.gov.et kiyalaw.com

Timeline of decisions

1. 9 Dec 2025Guidance · official
   NDPS 2026-2030 'BRIDGE 2030' and EthioPay Instant Payment System Launched

   At the second Ethiopia Digital Payment Conference (EDPC 2.0), the NBE launched its second National Digital Payments Strategy (2026-2030) — branded BRIDGE 2030 — alongside EthioPay, a new EthSwitch-built national instant payment system enabling real-time interbank transfers, QR payments, and cross-border settlement. The strategy targets 139-million-plus mobile money accounts and sets universal interoperability as a mandate.

   Ethiopian News Agency (ENA)

2. 24 Jun 2025Guidance
   NBE Directive Mandates Federal Agencies to Accept All Licensed Digital Payments

   The National Bank of Ethiopia issued a directive compelling all federal government institutions to accept electronic payments from every NBE-licensed provider, ending the de facto state preference for Telebirr in public services and institutionalising payment interoperability across government channels.

   Addis Insight

3. 12 May 2025Decision · official
   NBE Issues ONPS/10/2025: Minimum Capital for Mobile Money Issuers Doubled to ETB 100 Million

   The National Bank of Ethiopia's amended Payment Instrument Issuer directive (ONPS/10/2025) raised minimum paid-up capital for e-money issuers from ETB 50 million to ETB 100 million, lifted daily transaction limits to ETB 300,000 and balance caps to ETB 150,000, imposed senior-executive experience requirements, and required full compliance from existing licence holders by June 2027.

   National Bank of Ethiopia

4. 1 Jan 2025Law · official
   Banking Business Proclamation No. 1360/2025 Creates Digital Banking Licence Category

   Ethiopia's comprehensive new Banking Business Proclamation introduced a dedicated digital banking licence enabling banks to operate without physical branches, codified the NBE's regulatory sandbox mandate (alongside NBE Proclamation No. 1359/2025), permitted foreign bank participation for the first time, and established a bank-resolution and depositor-protection framework.

   National Bank of Ethiopia

5. 11 May 2023Decision · official
   NBE Grants Ethiopia's First Foreign Mobile Money Licence to Safaricom M-Pesa

   The National Bank of Ethiopia issued a mobile money transfer licence to Safaricom M-Pesa Mobile Financial Service Plc — a Safaricom Ethiopia subsidiary — making it the first foreign entity ever licensed to issue payment instruments in Ethiopia, a direct result of the December 2022 NPS amendment and requiring a foreign investor capital deposit of USD 150 million.

   Safaricom Ethiopia

6. 3 Feb 2023Law
   NPS Amendment Proclamation No. 1282/2023 Enters into Force

   After presidential signature and Federal Negarit Gazeta publication, the National Payment System Amendment Proclamation became legally operative, formally establishing NBE licensing requirements for all payment instrument issuers and payment system operators, and opening the sector to foreign investment for the first time.

   Digital Policy Alert

7. 22 Dec 2022Law
   Parliament Ratifies NPS Amendment, Opening Digital Payments to Foreign Operators

   Ethiopia's House of Peoples' Representatives ratified the National Payment System (Amendment) Proclamation — the most significant reform to the 2011 payment law — allowing foreign companies to own and operate payment instrument issuers, unlocking competition in a market previously reserved for domestic entities.

   Dablo Law Firm

8. 15 Jul 2021Guidance · official
   National Digital Payments Strategy 2021-2024 Officially Launched

   Ethiopia's Council of Ministers-approved first National Digital Payments Strategy (NDPS) was formally launched in Addis Ababa in partnership with the UN Better Than Cash Alliance, setting a four-year roadmap to build interoperable infrastructure, accelerate financial inclusion, and grow digital payment volumes — a framework that drove mobile money accounts from under 1 million to over 128 million by 2024.

   National Bank of Ethiopia

9. 11 May 2021Decision · official
   Ethiotelecom Launches Telebirr with Ethiopia's First Non-Bank Mobile Money Licence

   State-owned Ethiotelecom launched Telebirr — Ethiopia's first non-bank mobile money service — after the NBE granted the country's first payment instrument licence to a non-bank entity; one million users registered within six days, and Telebirr went on to become the dominant platform with over 40 million users by 2023.

   Embassy of Ethiopia

10. 1 Jan 2016Decision · official
    EthSwitch Becomes Operational: National ATM and POS Interoperability Activated

    EthSwitch S.C. — the NBE-supervised national payment switch incorporated in 2011 — went live, enabling for the first time cross-bank ATM and POS interoperability across all Ethiopian commercial banks and providing the shared settlement infrastructure that underpins every subsequent digital payment initiative.

    EthSwitch S.C.

11. 31 Jul 2011Law · official
    National Payment System Proclamation No. 718/2011 Enacted — Foundational Law

    Ethiopia's foundational payment-system law vested the National Bank of Ethiopia with sole authority to license, regulate, and oversee all payment systems and payment instrument issuers; introduced the Ethiopian Automated Transfer System (RTGS and ACH); and established the legal basis for e-money and the national switch — the cornerstone of the entire current fintech licensing framework.

    Ministry of Justice, Ethiopia

Sources

1. 1.nbe.gov.et/files/national-payment-systemamendment-proclamation-no-1282-2023/
2. 2.nbe.gov.et/wp-content/uploads/2023/04/National-Payment-SystemAmendement-Proclama
3. 3.nbe.gov.et/payment-instrument-issuers-system-operators/
4. 4.nbe.gov.et/mandates/directives/
5. 5.x.com/NBEthiopia/status/1927349786488840515
6. 6.addisinsight.net/2025/05/27/national-bank-of-ethiopia-issues-new-directive-to-strength
7. 7.addisinsight.net/2025/12/19/ethswitch-unveils-ethiopay-as-ethiopias-national-brand-for
8. 8.finextra.com/pressarticle/108830/ethiopa-switches-on-instant-payments
9. 9.thereporterethiopia.com/9560/
10. 10.kiyalaw.com/legal-update8.html
11. 11.aaclo.com/insight/observations-on-payment-system-operators-directive/