Ethiopia Introduces a Comprehensive Regulatory Framework for Franco Valuta Imports

Hirko & Associates Law Office wishes to inform investors, importers, business operators, trade associations, development organizations, and other stakeholders that the National Bank of Ethiopia (NBE) has issued the Import on Franco Valuta Directive No. FVD/01/2026, effective 29 May 2026.

The Directive establishes a consolidated legal framework governing the importation of goods under the Franco Valuta regime and replaces the previously dispersed regulatory provisions applicable to such transactions. The Directive applies to imports financed without recourse to foreign exchange obtained from the domestic banking system and sets out the applicable regulatory requirements, eligibility criteria, compliance obligations, documentation standards, monitoring mechanisms, and enforcement measures.

The Directive provides a legal framework governing the categories of persons eligible to undertake Franco Valuta imports, the purposes for which such imports may be permitted, and the conditions that must be satisfied by importers. It also introduces reporting and monitoring requirements intended to facilitate regulatory oversight of Franco Valuta transactions.

A notable feature of the Directive is the introduction of a digitally integrated monitoring framework through the Foreign Exchange Monitoring and Orchestration Unified System (FEMoUS). The Directive requires the recording and reporting of Franco Valuta import transactions through the relevant systems of the National Bank of Ethiopia and the Ethiopian Customs Commission, enabling enhanced transaction traceability and verification.