Addis Ababa, June 2025 — Ethiopia’s Ministry of Finance has formalized Directive No. 1069/2025, requiring all federal public institutions—from tax offices to utility providers—to accept payments via any licensed payment service provider, including:

• Mobile money platforms
• Debit and credit cards
• Prepaid instruments
• Internet banking services

These must be licensed by the National Bank of Ethiopia (NBE) (mofed.gov.et, africanenda.org, mfw4a.org).

Key Provisions:

1. 90-Day Compliance Deadline: All agencies must integrate with licensed digital payment providers by late August 2025, with 30-day progress reporting to the Ministry (mofed.gov.et).
2. Non-Discrimination Clause: Agencies are forbidden from rejecting any legitimate payment method based on provider identity, so long as it’s duly licensed (mofed.gov.et).
3. Full Fee Collection: Agencies must collect government-set fees regardless of transaction costs associated with different payment instruments .
4. Oversight & Support: The Ministry’s Inspection Department will oversee implementation, and agencies can request technical assistance from the Treasury Department (betterthancash.org).
5. Legal Basis: Grounded in Article 75 of the Federal Financial Administration Proclamation, this directive expands upon earlier electronic payment regulations (mofed.gov.et).

Strategic Context & Sector Alignment

• Ethiopia’s Digital Payments Strategy: This mandate aligns with Phase Two (2025–2029) of the National Digital Payments Strategy (NDPS), focusing on deepening usage, full interoperability, and merchant adoption—including public sector payment modernization (nbe.gov.et).
• Recent Fintech Reforms: The NBE has been tightening its digital finance regulations, including stringent licensing norms (e.g., ONPS/10/2025), mandatory interoperability, and higher capital thresholds for payment providers (stockmarket.et).
• Massive Digital Adoption: Between 2023 and 2024, digital financial services users and transaction volumes surged—by December 2024, over 128 million mobile money accounts were active, and digital transaction value surpassed 9.7 trillion Birr (nbe.gov.et).

Implications for the Economy & Public Services

• Modernizing Revenue Collection: Enabling digital payments across federal services reduces cash handling, streamlines operations, and brings greater transparency.
• Driving Financial Inclusion: The directive supports Ethiopia’s vision for a cash-lite economy by promoting access and convenience in public payments—bolstering inclusion of SMEs, women, and rural users.
• Boosting Fintech Competition: By mandating acceptance of all licensed providers, the government fosters innovation, pressures legacy providers to improve, and enhances consumer choice.

Challenges & Next Steps

• Tech Integration: Agencies must rapidly adapt legacy systems to integrate with licensed providers. Technical support from the Treasury may be vital.
• Staff Training: Rollout success hinges on training frontline and back-office staff to manage digital payment workflows effectively.
• Monitoring Rollout: The Ministry’s inspection body will play a key role in enforcing compliance during the 90-day window.

Ethiopia’s Directive No. 1069/2025 marks a pivotal move toward a digital-first public sector. Anchored in a broader reform agenda—aligned with both NDPS Phase Two and NBE’s fintech regulations—the measure promises smoother, more inclusive public services and deeper financial inclusion. As the late-August deadline looms, successful implementation will depend on inter-agency coordination, technical execution, and oversight.