NBE Preparing Fintech Sandbox for Cross-Border Digital Payments

The National Bank of Ethiopia (NBE) is preparing to launch a regulatory sandbox that could allow fintech companies to pilot cross-border digital payment platforms, marking a significant step toward opening Ethiopia’s digital financial ecosystem to international online transactions.

According to sources familiar with the initiative, the central bank is developing a regulatory framework that would enable selected fintech firms to test services allowing individuals to make international online payments of up to USD 5,000 per year under a controlled supervisory environment.

The proposed sandbox will serve as a testing ground for new payment technologies, allowing the NBE to evaluate operational, consumer-protection, cybersecurity, and foreign-exchange risks before broader regulatory approval.

If implemented, the framework will address a longstanding gap in Ethiopia’s financial system by enabling regulated digital payments for international e-commerce purchases.

This initiative follows broader financial sector reforms to modernize Ethiopia’s payment infrastructure and expand digital financial services.

Earlier this year, the NBE amended its foreign exchange directive to permit individuals to make international payments using internationally recognized payment cards. However, access to those services remains limited because users must first obtain foreign currency and maintain a minimum balance of USD 100, which restricts their availability to many Ethiopians.

The proposed fintech sandbox is expected to explore alternative digital payment models while maintaining the central bank’s oversight of foreign exchange usage and transaction limits.

The initiative also aligns with the National Bank’s draft National Digital Payments Strategy (NDPS) 2026–2030, which identifies cross-border payments as a strategic priority for strengthening Ethiopia’s digital economy.

The strategy addresses international payment constraints—such as limited access, high costs, fragmentation, and slow settlements—by calling for faster, secure, and affordable systems to support e-commerce, trade, tourism, remittances, and regional integration. It also emphasizes expanding interoperability with international networks, including the African Continental Free Trade Area (AfCFTA).

Additionally, the strategy promotes fintech innovation through regulatory reforms, improved licensing, and sandbox testing. While the National Bank has not announced a timeline for the sandbox, industry participants view the initiative as a crucial milestone toward Ethiopia’s open, innovation-driven digital payments ecosystem.

Source: Birrmetrics