Ethiopia’s Ministry of Finance has taken a significant step to modernise the nation’s payment infrastructure and promote digital financial inclusion by issuing a new order requiring all federal public institutions to accept payments made through any licensed payment service provider.
Following its registration with the Ministry of Justice, the Ministry posted Directive No. 1069/2025 on its website, which requires all government offices—from tax authorities to public service providers—to accept payments via prepaid payment methods, debit and credit cards, mobile money platforms, and internet banking services provided by financial institutions licensed by the National Bank of Ethiopia (NBE).
These consist of payment instrument issuers, mobile money operators, commercial banks, and microfinance organisations.
“The objective is to enhance open access, payment alternatives, and financial inclusion while ensuring the use of fair, competitive digital payments,” the directive reads.
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August 2025 deadlines to link payment systems to licensed digital payment platforms
The directive’s actual implementation requires governmental entities to link their payment systems with authorised digital payment providers by late August 2025, or within 90 days of its issuance.
In order to ensure complete compliance, they must also provide the Ministry of Finance with progress reports every 30 days.
The directive, which is important, forbids public institutions from limiting or rejecting valid payment methods because of the identity of the service provider, as long as the supplier has the necessary licence.
Additionally, it requires that government-imposed fees be fully collected, irrespective of the processing costs related to various payment methods.
Ethiopia’s commitment to shift from a cash-based economy
The action demonstrates Ethiopia’s increasing determination to move away from a cash-reliant economy.
Several laws have been enacted in recent years. These laws aim to open the financial sector to fintech companies and non-bank operators such as Safaricom’s M-PESA, which introduced mobile money services in 2023.
While government entities may ask the Treasury Department for technical assistance if necessary, the directive also gives the Ministry’s Inspection Department the authority to supervise its execution and enforce compliance.
Article 75 of the Federal Financial Administration Proclamation serves as the directive’s legal basis and aligns with previous directives on electronic payments.
The digital payment system does away with the need for manual processing, paperwork, and physical infrastructure. For businesses and financial institutions, this lowers transaction costs.
In addition, digital transactions typically have lower transfer costs than traditional banking systems.
Ethiopia is aggressively promoting digital payments as part of its “Digital Ethiopia 2025” goal for digital transformation.