In a sweeping policy shift aimed at modernizing public service delivery and expanding digital financial access, the Ministry of Finance has issued Directive No. 1069/2025, requiring all federal government offices to accept payments from all licensed payment service providers.
The directive, signed by Finance Minister Ahmed Shide and published on the Ministry’s official website, legally compels federal institutions — fully or partially financed by the government — to receive payments made through any financial institution licensed by the National Bank of Ethiopia (NBE). This includes commercial banks, microfinance institutions, mobile money providers, payment system operators, and other non-bank financial entities recognized by the NBE.
What the Directive Says
The directive, titled “A Directive on Mandatory Acceptance of Payments from All Licensed Payment Service Providers by Federal Public Bodies,” states:
“All public bodies shall be required to accept payments through any payment instrument issued by entities licensed and regulated by the National Bank of Ethiopia; including but not limited to: debit cards, prepaid payment instruments, mobile wallets, mobile and internet banking, and fund transfers.”
(Directive No. 1069/2025, Article 5)
The policy’s objective, as explicitly outlined in Article 4, is to:
- Ensure open access to payment systems
- Provide consumers with diverse payment options
- Promote financial inclusion
- Foster a competitive digital payments ecosystem
Implementation Timeline and Compliance
According to Article 9 of the directive, public offices are given a 90-day window from the date of issuance to:
- Complete the necessary technical and administrative arrangements
- Begin accepting all forms of licensed digital payments
They are also required to submit monthly progress reports to the Ministry of Finance until full compliance is achieved.
To ensure enforcement, the Ministry’s Inspection Department is empowered to monitor implementation and may request data or conduct on-site inspections (Article 10).
Non-Discriminatory Access
The directive also mandates non-discrimination: government offices cannot reject a valid payment solely based on which licensed provider issued it. As long as the provider is recognized by the NBE, the payment must be accepted (Article 7).
Additionally, the directive prohibits imposing additional costs on citizens based on their choice of payment method. The full amount determined by the government must be accepted, regardless of the associated processing costs (Article 8).
Part of a Larger Reform Agenda
Directive No. 1069/2025 builds on Ethiopia’s broader regulatory infrastructure to digitize payments, especially:
- The Electronic Payment Directive No. 71/2020, which continues to apply in parallel
- The National Payment Systems Proclamation No. 718/2011 (amended), which provides the legal basis for digital transaction platforms
This move complements other efforts to open Ethiopia’s digital financial sector. In 2020, the National Bank of Ethiopia issued the Licensing and Authorization of Payment Instrument Issuers Directive, which allowed non-bank fintech firms to enter the market.
The new directive represents a formal legal mandate aimed at ensuring universal acceptance of licensed digital payments within Ethiopia’s public sector. It is designed to remove institutional barriers, improve service delivery, and align government operations with Ethiopia’s fast-evolving digital finance ecosystem.
While this marks a significant administrative step, its success will depend on how swiftly institutions upgrade their systems, and whether users — particularly in underserved areas — can access and trust the growing variety of licensed payment platforms.
