Allows foreign investment in digital payment systems

On 3 February 2023, the Government of Ethiopia adopted an amendment to the National Payment System Proclamation (Amendment No. 718/2011), which opens the digital payment systems to foreign investment. To register for these services, foreign nationals need to follow the licensing procedures provided under the Amendment Proclamation and which will be further regulated by the directives of the National Bank of Ethiopia. Foreign nationals and Ethiopian organisations fully owned by foreign nationals are required to invest in payment instrument issuer and/or a payment systems operator business only through foreign direct investment, in foreign currency. This requirement also extends to Ethiopian organisations partially owned by foreign nationals.

• Type:

  • Entry and establishment (Ownership and control)

• Industry:

  • Services (Financial and insurance activities)

• Sources:

  • Africa Legal Network, Amendment to the National Payment System Proclamation becomes Effective, https://aln.africa/insight/amendment-to-the-national-payment-system-proclamation-becomes-effective/#:~:text=The%20Amendment%20Proclamation%2C%20under%20article,issuer%20or%20payment%20system%20operator, 17 Feb 2023
  • Government Portal, Proclamation No. 1282/2023 National Payment System (Amendment) Proclamation, https://nbebank.com/wp-content/uploads/2023/National%20payment%20system/Negarit.pdf, 03 Feb 2023