- Introduction
The first half of 2026 witnessed significant legal and regulatory reforms across various sectors of the Ethiopian economy. These developments reflect the Government’s continued efforts to modernize the regulatory framework, promote investment, strengthen financial sector governance, improve tax administration, enhance public service delivery, and align sector-specific regulations with ongoing economic reform initiatives.
This update provides a concise overview of key proclamations, regulations, directives, and policy measures issued between January and June 2026. It is intended to assist businesses, investors, legal practitioners, and other stakeholders in understanding the evolving legal landscape in Ethiopia.
- List of Laws
- Financial, Banking and Insurance Sector
| Laws | Sector | Key Subject Matter | Status |
| Amendment to Foreign Exchange Directive No. FXD/04/2026 | Banking and Finance | Revise foreign exchange rules | In force |
| Amendment to Foreign Exchange Directive No. FXD/05/2026 | Banking and Finance | Further amendment of foreign exchange rules | In force |
| Requirements for Licensing a Bank Branch to Operate in Special Economic Zone Directive No. SBB/99/2026 | Banking | Licensing requirements for bank branches operating in SEZs | In force |
| Interest Rates (As Amended) Directive No. NBE/INT/13/2026 | Banking | Revises interest rate framework | In force |
| Import on Franco Valuta Directive No. FVD/01/2026 | Foreign Trade and Banking | Regulates importation under Franco Valuta arrangements | In force |
| Licensing of Insurance Brokers Directive No. SIB/62/2026 | Insurance | Regulates licensing of insurance brokers | In force |
| Requirements for Persons with Significant Influence in an Insurance Company Directive No. SIB/63/2026 | Insurance | Fit and proper requirements for influential persons | In force |
| External Auditor of an Insurance Company Directive No. SIB/64/2026 | Insurance | Regulates appointment and duties of external auditors | In force |
| Licensing and Supervision of Micro insurance Agents Directive No. SMIB/4/2026 | Insurance | Licensing and supervision of micro insurance agents | In force |
| Draft Insurance Business Proclamation No. …/2026 | Insurance | Establishes Insurance Regulatory Authority and opens the sector to foreign participation | Draft |
| Licensing and Authorization of Payment System Operators (Amendment) Directive No. ONPS/…/2026 | Payment System | Amends licensing requirements for payment service operators | Draft |
- Taxation and Customs Sector
| Laws | Sector | Key Subject Matter | Status |
| Customs Amendment Proclamation No. 1425/2026 | Customs | Amends customs administration framework | In force |
| Directive Amending the Ethiopian Customs Valuation Directive No. 1123/2018 | Customs | Revises customs valuation procedures | In force |
| VAT Refund Directive No. 1132/2026 | Tax | Establishes procedures for VAT refunds | In force |
| Advance Ruling on Rules of Origin Directive No. 1131/2026 | Trade and Custom | Provides advance rulings regarding rules of origin | In force |
| Electronic Invoicing Directive No. 1142/2026 | Tax Administration | Introduces electronic invoicing requirements | In force |
| Tax Administration Proclamation No. …/2026 | Tax Administration | Revise tax administration framework | Draft |
| Ministry of Finance Circular on Income Tax Exemptions for Free Trade Zones | Tax | Clarifies tax exemptions applicable in free trade zones | In force |
| Council of Ministers Federal Income Tax Regulation No. …/2026 | Tax | Implements federal income tax proclamation | Draft |
- Investment, Trade and Logistics Sector
| Laws | Sector/Area | Key Subject Matter | Status |
| Investment Incentives Regulation No. 586/2026 | Investment | Revises investment incentive framework | In force |
| MESOB Service Regulation No. 583/2026 | Trade Facilitation | Establishes MESOB service framework | In force |
| Ethiopian Investment Board Decision Opening Freight Forwarding Sector to Foreign Investors | Logistics | Opens freight forwarding sector to foreign investment | In force |
- Health Sector
| Laws | Sector | Key Subject Matter | Status |
| Overseas Medical Service Referral Directive No. 1128/2026 | Health | Regulates overseas medical referrals | In force |
| Directive on the Production and Dissemination of Health Service Advertisements No. 1134/2026 | Health | Regulates health service advertisements | In force |
| Rational Medicine Use Control Directive No. 1138/2026 | Health | Promotes rational use of medicines | In force |
- Other Sectoral Development
| Laws | Sector | Key Subject Matter | Status |
| Criminal Procedure and Evidence Proclamation No. 1410/2026 | Criminal and Evidence | Modernizes criminal procedure and evidence rules | |
| Draft Amendment to the Ethiopian Aviation Security Proclamation | Aviation | Strengthens aviation security framework and compliance standards | Draft |
| Cooperative Societies Amendment Proclamation No. 1416/2026 | Cooperative | Enhances governance and regulation of cooperatives | In force |
- Conclusion
The legal and regulatory developments recorded during the first half of 2026 demonstrate Ethiopia’s continued trajectory toward regulatory modernization and economic reform. The reforms span key sectors including finance, taxation, investment, health, and justice, reflecting a coordinated effort to enhance institutional efficiency, improve compliance frameworks, and promote investment and trade facilitation.
