Major Legal & Regulatory Developments in Ethiopia: January – June 2026

Jun 25, 2026 | Legal Insights, News

  1. 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.

  1. List of Laws
    • Financial, Banking and Insurance Sector
LawsSectorKey Subject Matter             Status
Amendment to Foreign Exchange Directive No. FXD/04/2026Banking and  FinanceRevise foreign exchange rulesIn force
Amendment to Foreign Exchange Directive No. FXD/05/2026Banking and FinanceFurther amendment of foreign exchange rulesIn force
Requirements for Licensing a Bank Branch to Operate in Special Economic Zone Directive No. SBB/99/2026BankingLicensing requirements for bank branches operating in SEZsIn force
Interest Rates (As Amended) Directive No. NBE/INT/13/2026BankingRevises interest rate frameworkIn force
Import on Franco Valuta Directive No. FVD/01/2026Foreign Trade and BankingRegulates importation under Franco Valuta arrangementsIn force
Licensing of Insurance Brokers Directive No. SIB/62/2026InsuranceRegulates licensing of insurance brokersIn force
Requirements for Persons with Significant Influence in an Insurance Company Directive No. SIB/63/2026InsuranceFit and proper requirements for influential personsIn force
External Auditor of an Insurance Company Directive No. SIB/64/2026InsuranceRegulates appointment and duties of external auditorsIn force
Licensing and Supervision of Micro insurance Agents Directive No. SMIB/4/2026InsuranceLicensing and supervision of micro insurance agentsIn force
Draft Insurance Business Proclamation No. …/2026InsuranceEstablishes Insurance Regulatory Authority and opens the sector to foreign participationDraft
Licensing and Authorization of Payment System Operators (Amendment) Directive No. ONPS/…/2026Payment SystemAmends licensing requirements for payment service operatorsDraft
    
  • Taxation and Customs Sector
LawsSectorKey Subject MatterStatus
Customs Amendment Proclamation No. 1425/2026CustomsAmends customs administration frameworkIn force
Directive Amending the Ethiopian Customs Valuation Directive No. 1123/2018CustomsRevises customs valuation proceduresIn force
VAT Refund Directive No. 1132/2026TaxEstablishes procedures for VAT refundsIn force
Advance Ruling on Rules of Origin Directive No. 1131/2026Trade and CustomProvides advance rulings regarding rules of originIn force
Electronic Invoicing Directive No. 1142/2026Tax AdministrationIntroduces electronic invoicing requirementsIn force
Tax Administration Proclamation No. …/2026Tax AdministrationRevise tax administration frameworkDraft
Ministry of Finance Circular on Income Tax Exemptions for Free Trade ZonesTaxClarifies tax exemptions applicable in free trade zonesIn force
Council of Ministers Federal Income Tax Regulation No. …/2026TaxImplements federal income tax proclamationDraft
  • Investment, Trade and Logistics Sector
LawsSector/AreaKey Subject MatterStatus
Investment Incentives Regulation No. 586/2026InvestmentRevises investment incentive frameworkIn force
MESOB Service Regulation No. 583/2026Trade FacilitationEstablishes MESOB service frameworkIn force
Ethiopian Investment Board Decision Opening Freight Forwarding Sector to Foreign InvestorsLogisticsOpens freight forwarding sector to foreign investmentIn force
  • Health Sector
LawsSectorKey Subject MatterStatus
Overseas Medical Service Referral Directive No. 1128/2026Health Regulates overseas medical referralsIn force
Directive on the Production and Dissemination of Health Service Advertisements No. 1134/2026Health Regulates health service advertisementsIn force
Rational Medicine Use Control Directive No. 1138/2026HealthPromotes rational use of medicinesIn force

 

  • Other Sectoral Development
LawsSectorKey Subject MatterStatus
Criminal Procedure and Evidence Proclamation No. 1410/2026Criminal and EvidenceModernizes criminal procedure and evidence rules 
Draft Amendment to the Ethiopian Aviation Security ProclamationAviationStrengthens aviation security framework and compliance standardsDraft
Cooperative Societies Amendment Proclamation No. 1416/2026CooperativeEnhances governance and regulation of cooperativesIn force

 

  1. 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.

 

Legal Insights