• National Bank caps interbank transfers, restricting fund movement between banks
• Industrial park tenants report operational disruptions due to transfer limits
• Companies unable to pay suppliers and service providers across different banks
• Manufacturers cite delays in import payments and raw material procurement
• Policy affects firms operating in multiple banking relationships
• Industrial park investors raise concerns over production continuity risks
• Businesses request policy revision or exemptions for industrial operators

Why it matters?

Interbank transfer restrictions are directly affecting industrial operations, disrupting payments and supply chains. This raises concerns over manufacturing stability and investor confidence in Ethiopia’s industrial parks

• National Bank of Ethiopia expands regulatory oversight across insurance sector

• New directive extends supervision beyond shareholders to agents and intermediaries

• Insurance agents now subject to stricter licensing, reporting, and compliance requirements

• Insurers required to ensure accountability across entire distribution chain

• Directive strengthens enforcement on misconduct and regulatory breaches

• Reform aims to improve transparency, governance, and consumer protection

• Applies to all insurance companies operating in Ethiopia

Why it matters?
The directive increases compliance costs and operational control requirements for insurers, while tightening oversight of distribution networks and improving market discipline.

• Import clearance period proposed to extend from 30 days to 45 days

• Importers allowed partial cargo release before full documentation completion

• Reform targets reduction in port dwell time and storage costs

• Commission expanding enforcement scope across multiple contraband corridors

• Increased inspections focused on high-risk cargo categories and routes

• Policy designed to shift more trade into formal customs channels

• Measures aim to improve customs revenue collection and compliance rates

Why it matters?

Extending clearance to 45 days eases importer cash flow and reduces demurrage costs. At the same time, tighter enforcement raises risk and cost for informal operators, pushing more volume toward formal logistics and regulated trucking networks.

• National Bank of Ethiopia to launch interdealer FX trading platform in 2026.

• Current export FX surrender requirement stands at 70%.

• Exporters retain 30% under existing framework.

• Planned reform will reduce mandatory surrender ratio.

• Retention share for exporters set to increase.

• Shift follows gradual FX liberalization measures since 2024.

• NBE conducted two special FX auctions totaling $1 billion.

• Latest auction allocated $455.29 million at 155.17 Birr/USD.

• Interbank FX transactions to move from NBE allocation model to dealer-based trading.

• Reform signals transition from centralized FX distribution to market-based pricing.

Why it matters?
Lower surrender ratios and interdealer trading indicate structural shift toward FX market liberalization and reduced central bank allocation dominance.

• Ministry of Finance maintains 150% export tax on raw hides and skins.

• Semi-processed hides face 10% export tax; finished leather exports taxed at 0%.

• Policy supports domestic leather processing and manufacturing industries.

• Government preparing legal reform to revise export tax framework.

• Reform process underway; no implementation date announced.

• Leather industry stakeholders awaiting clarification on regulatory changes.

why it matters?
Export tax structure directly affects Ethiopia’s leather value chain, export revenues, and raw material supply for domestic manufacturers.

• National Bank of Ethiopia targets full removal of the bank credit growth cap by December 2026.

• Credit cap currently limits annual bank lending growth to 24 percent.

• Policy shift follows improved macroeconomic conditions and ongoing monetary policy reforms.

• NBE plans a gradual and sequenced exit from the credit cap framework.

• Reform aligns with transition toward market-based monetary policy tools.

• Credit cap was introduced to control inflation and manage excess liquidity.

Why it matters?
The timeline signals regulatory predictability for banks and borrowers. It clarifies when credit allocation will fully shift to market-based mechanisms under NBE oversight.

• Imports may rise through expanded trade finance and letters of credit, conditional on foreign exchange availability.

• Exports may increase via improved pre- and post-shipment financing for exporters.

• NBE now requires banks to use Ethiopian Customs Commission indicative prices for selected imported goods in Letters of Credit and import permits. 

• The measure becomes effective January 27, 2026. 

• It addresses price discrepancies between bank-used prices and customs reference prices. 

• The action follows the implementation of consolidated Foreign Exchange Directive No. FXD/0V2024 from July 2024. 

• Under the reform, banks can negotiate FX buying/selling rates directly with customers.  

Why it matters:

Aligning LC valuations with customs prices improves transparency and consistency in trade financing by reducing discrepancies between bank-approved hard currency amounts and official import valuation. It may enhance predictability of import cost calculations for businesses and customs duty assessments. This policy strengthens coordination between the National Bank of Ethiopia and the Ethiopian Revenues & Customs Authority in managing foreign exchange and trade finance procedures.