Ethiopian Country

Country data

Population.
110,000,000
National currency
ETHIOPIAN BIRR (ETB)
Average salary (in capital city)
4,000 ETB PER MONTH
Official and recognized minority languages
AMHARIC, QUBEE, TIRIGNA
Gross domestic product (EUR)
109.5 Billion EUR
Unemployment rate
21.3%
Immigration and emigration by countries in the last 10 years.
 Immigration
Over 950,000 migrants were returned to Ethiopia between 2011 and 2021
 Emigration
1,543,000 Ethiopians have migrated to other countries in the past ten years
Number of active enterprises.
111,517
Percentage of companies engaged in import.
1.33%
Imported goods per year in EUR.
12.7 Billion EUR BY 2021
Turnover from international trade by countries.
4.08 Billion EUR By 2021/22 From Export Trade
15.8 Billion EUR By 2021/22 Imported Trade

Commerce

E-commerce turnover.
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Number of active e-shops.
15
Most popular e-shops.
The leading platforms to shop online are Jumia, Qefira.com, Sheger.net, ShebaShopping,
Delala, EthioSuQ.Com
Biggest e-shops by turnover.
Delala
How e-shops accepts payments (how people pay for purchases online)?
THROUGH MOBILE BANKING AND TELEBIRR
Percentage of payments by credit/debit cards in e-shops.
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Do courier companies provide the COD service?
NO, THEY DON’T
Percentage of COD payments.
80%
Other payment methods by percentage.
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Payment service providers

Biggest/Most common payment systems in the country - market share, pricing.

Credit/debit card online processing prime cost and the standard selling price (in percentage).
Providers of payment collection services by debit and credit card (online and card readers)

Electronic money institutions

Are there any E-money institutions or non-bank E-money licensed financial institutions by the
local regulator?

The list of such institutions (services provided, pricing, market share, swot analysis).

What international electronic money institutions provide services in the country (services
provided, pricing, market share, swot analysis).

Regulations of Electronic money institutions

Which entities regulate e-money institutions? Which institution provides the e-money license?
What is the procedure to gain the e-money license?

The costs of e-money license (initial and nominal capital required; application fees; annual fees).
Other important requirements provided by the e-money law?

Statistics

Percentage of population with bank accounts.

How many of them have credit / debit cards?
Percentage of payments by credit / debit cards?
Percentage of payments by cash / the use of cash?
Value of payments by credit / debit cards.
Number of transactions by credit / debit cards.
How many international transactions (number) and for what amount (value) have been
performed by banks in the last few years?
Domestic transactions: number of transactions and value. Most common foreign currencies used
in the last few months.

Bank services

Most biggest banks by a number of clients.

• In terms of deposit account CBE (30,863,715) constituted the highest; followed by

(Cooperative Bank of Oromia)CBO (6,702,438), (Bank of Abyssinia)BOA (6,545,028), and
(Awash International Bank)AIB (6,490,722). In terms of credit account CBE (152,440)
constituted the highest; followed by DB (30,403) AIB (27,864), and WB (25,573) as of June
30, 2022.

What is a common procedure of opening bank accounts by individuals / business?

• On August 27, 2021 National Bank of Ethiopia (NBE) has issued requirement for
undertaking account based transactions and ensuring of regulatory limits directive
No.FIS/04/2021, which lay down minimum standards to be used consistently by financial
institutions to open bank accounts for individuals of customers that can be further
strengthen by the banks internal policy/procedure, so as to ensure proper identification of
customers, appropriate assessment and monitoring of transactions.

Business bank account: what documents are needed to open an account? What are account
options? Regulations.

•As per the aforementioned directive NBE has set the minimum standard to open an
account but the documents required to open an account are set by the bank’s internal
policy and procedure.

How much does it cost to open business and private accounts at banks? Are there any
administration fees? What account plans do banks have?

•The costs related to account opening, administration fees are not set by NBE. However,
banks do have various costs set for each service; they provide in line with their own
policy/procedure.

Do banks provide Electronic banking? What are the main differences between EU E-banking
systems and the local ones?

 Banks provide Electronic banking

 The major difference is that there is no Credit card service in Ethiopia

The domestic currency: fluctuations, prospects for the future (devaluation, etc.).

 Four years ago, on October 11, 2017, Ethiopia’s central bank made significant
decisions to devalue the Ethiopian Birr by 15 percent in a single round as pressures
on the foreign exchange intensified. The devaluation pegs the Birr at 26.91 to the
dollar, up from 23.40 Br on the official market. Similarly, the National Bank of
Ethiopia (NBE) has also announced that it has raised the main interest rate to 7
percent from 5 percent to stimulate savings and counter inflation. According to the
Government, the devaluation was undertaken to encourage exports and overcome
the foreign exchange shortages.
 Ethiopia’s Birr has depreciated at an annualized rate of 26 percent in the 2021/22
fiscal year, much the same rate as the previous year. According to the study, the
depreciation rate outpaced inflation for the entire last fiscal year (2020/21 FY),
resulting in real currency depreciation. However, according to the research, the
situation has turned around this year, with depreciation rates currently
substantially below recent inflation rates, potentially contributing to a meaningful
appreciation (strengthening) of the Birr if present trends continue.

Fees for money withdrawal at ATM’s.

 0.5% Per Withdrawal

Which file formats do banks (e-banking systems) use for export and import of transactions
templates? Average transaction fees at banks?

How much do the following transfers costs.

Local transfers: to the same bank / other local banks / International transfers.

ALL LOCAL TRANSFER COSTS FREE FROM ONE BANK TO ANOTHER BANK IS 20 ETB
ALL LOCAL TRANSFER COSTS FREE TO THE SAME BANK IS FREE
INTERNATIONAL TRANSFER COSTS BETWEEN $4.99-$2.49

Do banks have their mobile applications? What functions do these apps have? Are there any
currency exchange companies / locations other than banks? Which companies exchange
currency?

•As of June 30, 2022 there are fifteen (15) banks which have started mobile banking service
operated through software intended to run on a mobile phone. The applications may have
different functions for instance; transfer to own banks account, top up service, and
different utility payments (CBE). Currently, there are no currency exchange companies
other than banks.

Is it possible to negotiate with banks on money exchange rates?

•In line with fixation of the daily foreign exchange cash notes and transaction rate directive
No.FXD/60/2018, banks use the daily indicative rates issued by NBE in a daily basis. The
foreign exchange buying rate of a bank shall be the NBE interbank foreign exchange
market indicative buying rate of the day, the margin set between the buying and selling
rate of bank shall not exceed 2% (two percent) from NBE interbank foreign exchange
market indicative buying rate of the day. Thus, there is minor space for exchange rates
negotiation.

How much does letters of credit cost in banks? Is this service popular?

•LC (letter of credit) is one of widely used payment instrument by banks in Ethiopia.
However, related costs are determined by banks own policy and procedure,

Personal identification

What personal documents are recognized? (passport, ID, citizen card, social security number?) Is
it possible to implement personal identification via e-banking?

Passport, ID, Citizen Card are recognized

No it is not implemented via e-banking

How to implement personal identification by logging into the e-government gateway?

No it is not implemented via e-banking

How is personal identification implemented in the country, what documents are recognized for
identification? (ID cards, social security numbers, etc.).

It is implemented through Ethiopian Vital Events Registration

Passport, ID, Citizen Card

Electronic signature law. If the electronic signature exists, who provides the right to use it and
how many users are there?

There is Electronic signature law in Ethiopia and it is provided by Information Network

security Administration (INSA).
Local market questions

Biggest courier companies in the country.

 Ethiopian Postal Service

 EMS
 DHL
 FEDEX EXPRESS
 LOGIX EXPRESS
 TNT EXPRESS
 ROYAL EXPRESS
 SKYNET WORLD WIDE EXPRESS

Payments for utility bills. Are there any automated systems for utility bill payments? What is a
common method of paying utility and government payments?

 There is automated systems for utility bill payment

 Common method of paying utility and government payment are EBIRR, TELEBIRR,
CBE BIRR, CBE MOBILE BANKING

The number of restaurants and supermarket chains that take over 90% of the market. Which is
the most common accounting software?

Peachtree accounting software is the most common accounting software in Ethiopia

Online accountancy software. Which accounting software is the most common? Which are the
most common Point of Sale softwares?

Most common point of sale softwares in Ethiopia is TYC Inventory, TYC eTax System

Smartphone penetration and the most common operational systems (Android, iOS, etc.). Biggest
fuel chains in the country.

YETEBABERUT BEHERAWI PETROLEUM S.C.

TOTAL ETHIOPIA S.CO
NATIONAL OIL CO
OIL LIBYA ETHIOPIA LTD. HEAD OFFICE