Legal Updates
Stay informed with our latest legal insights, analysis, and updates on regulatory developments in Ethiopia and across Africa.
Ethiopiaโs Beneficial Ownership Transparency Regime under Regulation No. 592/2026: A New Era of Corporate Disclosure
On 10 July 2026, the Council of Ministers issued the Transparency of Legal Persons Beneficial Ownership Information Regulation No. 592/2026 (the โRegulationโ), establishing Ethiopiaโs first comprehensive framework for the identification, registration and disclosure of beneficial ownership information. The Regulation was published in the Federal Negarit Gazette on the same date and entered into force upon publication. It represents a significant development in Ethiopiaโs anti-money laundering and counter-terrorist financing framework.
National Bank of Ethiopia Announces Major Monetary Policy Reforms: Credit Cap Removed and Policy Rate Increased to 16%
The National Bank of Ethiopia (NBE), through its Monetary Policy Committee (MPC), announced a comprehensive package of monetary policy reforms following its seventh regular meeting held on 13 July 2026 (Hamle 6, 2018 E.C.). The decisions, subsequently approved by the NBE Board of Directors, represent one of the most significant developments in Ethiopia's monetary policy framework since the commencement of the country's macroeconomic reform program in July 2024.
DRAFT STATISTICS PROCLAMATION PROPOSES COMPREHENSIVE REFORM OF ETHIOPIA'S NATIONAL STATISTICAL SYSTEM
A draft Statistics Proclamation has been introduced to replace the legal framework currently governing the production, management, and dissemination of official statistics in Ethiopia. The proposed legislation would establish a new institutional structure for the national statistical system, expand the range of data sources that may be used for official statistics, introduce detailed rules on confidentiality and data access, and create new obligations for public institutions, businesses, and other data providers.
UNDERSTANDING ELECTRONIC COMMERCE LAW IN ETHIOPIA: A PRACTICAL GUIDE FOR DIGITAL BUSINESSES, PLATFORM OPERATORS, AND CONSUMERS
Electronic commerce has fundamentally transformed the way businesses operate, consumers purchase goods and services, and governments deliver public services. Today, commercial transactions can be initiated, negotiated, concluded, and executed entirely through digital platforms, making legal certainty in electronic transactions indispensable to a modern digital economy.
ETHIOPIA PROPOSES SIGNIFICANT AMENDMENTS TO THE TAX ADMINISTRATION FRAMEWORK
The draft amendment formally introduces important legal concepts that are expected to play a central role in future tax assessments, investigations, objections, and appeals if adopted.
Licensing and Authorization of Payment System Operators (Amendment) Directive
The most consequential reform proposed by the National Bank is the decision to open the payment system operator sector to foreign participation. For many years, Ethiopia's payment infrastructure industry has largely remained the domain of locally owned businesses and domestic financial institutions. The draft amendment signals a major departure from this approach by allowing foreign-owned companies and foreign-backed subsidiaries to obtain licenses and operate within the sector.
Ethiopia's Payment System Operators Faces Its Biggest Regulatory Transformation Since Liberalization
The National Bank of Ethiopia has released a draft amendment to the Licensing and Authorization of Payment System Operators Directive, introducing sweeping reforms that could fundamentally reshape the country's digital payments landscape.
Understanding Ethiopiaโs Digital Financial Services Framework: Distinguishing PIIs from PSOs
The difference between the piis and psos. PSO directive, Art.2 (34) and Art.2 (18) of the amended National Payment System Proclamation define PSO in a different tone. The PSO Directive defines Payment System Operators as a financial institution or any other person authorized by NBE to own, operate, and administer a payment system.
A New Era for Insurance Regulation in Ethiopia
Ethiopiaโs insurance sector stands at a critical point of transformation. The draft Insurance Proclamation introduces a comprehensive overhaul of the existing legal and regulatory framework, reflecting both global best practices and the evolving needs of the domestic market. From institutional restructuring to market liberalization and enhanced governance, the reform signals a decisive shift toward a more modern, inclusive, and resilient insurance ecosystem.
Analysis of the ECMA CIS Directive Draft: A New Era for Ethiopian Collective Investments
The Ethiopian Capital Market Authority (ECMA) has circulated a draft Collective Investment Schemes (CIS) Directive dated July 2025 that is nothing short of a constitutional framework for the asset management industry. For legal practitioners and market entrants, this draft is the blueprint for how Ethiopia will mobilise retail and institutional capital moving forward. At Hirko and Associates Law Office, we have analyzed the pragmatic shifts this directive introduces. It transforms vague statutory provisions into operational reality.
Wha is New Under the Investment Incentives Regulation No. 586/2026
On 20 January 2026, the Council of Ministers approved a new legal framework governing investment incentive as part of broader reforms aimed at strengthening fiscal discipline, customs administration, and private sector development. The enactment of Investment Incentives Regulation No. 586/2026 repeals and replaces the prior regime under Investment Incentive Regulation No. 517/2022, marking a fundamental restructuring of Ethiopiaโs tax and customs incentive architecture.
A Comprehensive Analysis of the Further Liberalization of Ethiopia's Foreign Exchange Regime: Directive No. FXD/04/2026 (February 2026)
Banks may now offer forward exchange contracts without National Bank approval. Transacting parties freely choose between spot and forward rates. This enables currency risk hedging for the first time.
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Copyright is a fundamental branch of intellectual property law that protects the original literary, artistic, and scientific works produced through human creativity and intellectual effort.
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.
Ethiopiaโs Data Sovereignty Regime: A Framework in Search of Enforcement
On 24 July 2024, the Personal Data Protection Proclamation No. 1321/2024 (the โProclamationโ) entered into force, establishing Ethiopiaโs first comprehensive legal framework for the protection of personal data. Among its most significant features is the recognition of data sovereignty as a statutory principle, introducing important requirements concerning the storage, processing, and cross-border transfer of personal data.
Ethiopia Amends Customs Valuation Rules: Strengthening Transparency, Fairness, and WTO Compliance
The Ministry of Revenues has issued Customs Valuation Directive No. 1123/2018 (2026), amending the Customs Valuation Directive No. 1080/2017 (2025). The amendment entered into force upon its registration with the Ministry of Justice and publication on the official website of the Ministry of Revenues.
Ethiopia's New Customs Proclamation: 5 Key Changes Every Importer and Transporter Must Know
A major amendment to Ethiopia's Customs Proclamation took effect on 23 July 2026, bringing changes that will reshape how businesses import goods, transport cargo, and challenge customs decisions. The new law, Proclamation No. 1425/2026, presents a tale of two worlds. For compliant importers, it offers genuine relief through reduced financial burdens and stronger procedural protections. For those in the transport and logistics sector, it introduces penalties so severe that a single mistake could cost a vehicle, a business, or a livelihood. Here are the five most important changes every business owner, importer, and transporter needs to understand.
Ethiopia Enacts Critical Infrastructure Cybersecurity Proclamation
The House of Peoples' Representatives has enacted the Critical Infrastructure Cybersecurity Proclamation No. 1426/2026, establishing a comprehensive legal framework for the protection of Ethiopia's strategic infrastructure from cyber threats. Published in the Federal Negarit Gazette on 21 July 2026, the Proclamation will enter into full force on 21 July 2027.
INFORMATION TECHNOLOGY PRODUCTS SECURITY CLEARANCE AND CONTROL PROCLAMATION NO. 1310/2023: WHAT STAKEHOLDERS SHOULD KNOW
Ethiopia's digital transformation has accelerated the adoption of information technology across government institutions, businesses, financial services, and everyday commercial activities. As technology increasingly underpins critical infrastructure and economic development, the need for a legal framework capable of safeguarding national information security has become equally important.
UNDERSTANDING ETHIOPIA'S FOREIGN RESIDENTIAL PROPERTY OWNERSHIP REGIME: WHAT FOREIGN NATIONALS, INVESTORS, AND DEVELOPERS SHOULD KNOW
Ethiopia's property law has traditionally restricted foreign nationals from owning immovable property, limiting them primarily to leasehold arrangements and other investment structures.
Ethiopia Enacts Carbon Market Proclamation No. 1436/2026 Establishing the Legal Framework for Carbon Trading, Climate Finance, and Sustainable Investment
The House of Peoples' Representatives of the Federal Democratic Republic of Ethiopia has enactedย Carbon Market Proclamation No. 1436/2026 (the "Proclamation"), establishing Ethiopia's first comprehensive legal framework governing carbon market activities.
ELECTRONIC INVOICING SYSTEM ADMINISTRATION DIRECTIVE NO. 1142/2026
The Ministry of Revenues has enacted theย Electronic Invoicing System Administration Directive No. 1142/2026, effecting a fundamental transformation of Ethiopia's tax reporting landscape. This Directive shifts the paradigm from traditional paper-based invoicing to a mandatory, real-time digital reporting framework that will fundamentally alter how businesses record and report transactions.
MAJOR REGULATORY REFORM IN ETHIOPIA'S HEALTHCARE SECTOR: EFDA Issues New Rational Medicine Use Control Directive No. 1138/2026
The new directive establishes a significantly enhanced regulatory framework governing the prescribing, dispensing, compounding, monitoring, and promotion of medicines in Ethiopia. The reform reflects the evolving needs of the healthcare sector and introduces measures designed to improve patient safety, strengthen accountability among healthcare professionals, support the digitalization of healthcare services, and address the growing global challenge of antimicrobial resistance.
Ministry of Urban and Infrastructure Issues Implementing Directive for Foreign National Residential Property Ownership Framework
On August 2026, the Ministry of Urban and Infrastructure issued Directive No. 1147/2018 (the โDirectiveโ) to operationalize the Foreign Nationalsโ Ownership Right of Residential House Proclamation No. 1388/2025 (the โProclamationโ). The Directive establishes the detailed procedural and administrative framework governing the ownership of residential houses by foreign nationals in Ethiopia. In particular, it provides requirements relating to eligibility, minimum capital thresholds, application and approval procedures, foreign exchange arrangements, registration of ownership, restrictions on ownership and use, and administrative penalties for non-compliance.
Addis Ababa Introduces a Comprehensive Licensing Framework for Construction Mineral Extraction
On 6 July 2026, the Addis Ababa City Environmental Protection Authority issued Directive No. 191/2018 (the โDirectiveโ), establishing a comprehensive regulatory framework for the licensing, administration, production, and oversight of construction minerals within the jurisdiction of the Addis Ababa City Administration. The Directive was registered with the Ministry of Justice and published on the Authorityโs website, becoming effective upon publication. The Directive represents a significant regulatory development for Addis Ababaโs construction mineral sector. It seeks to bring the extraction and supply of construction minerals within a more structured licensing and monitoring framework, while strengthening environmental protection, land-use controls, transparency, reporting, and accountability. The Directive is issued pursuant to the authority granted to the Addis Ababa City Environmental Protection Authority under Article 16(2)(e) of Proclamation No. 84/2016 and operates within the broader framework of the Mining Operations Proclamation No. 678/2010, as amended, and the Mining Operations Council of Ministers Regulation No. 423/2010.