In a watershed moment for Ethiopia’s digital economy, the National Bank of Ethiopia (NBE) has issued a sweeping relaxation of foreign exchange (FX) controls, effectively removing the regulatory friction that has long hampered the country’s tech sector, gig workers, and foreign investors.
The new measures, detailed in the “Notice on Relaxation of Foreign Exchange Directives” (dated 11 February 2026) and effectively amending the landmark July 2024 reforms, signal a decisive shift from state control to market liberalization. For the tech ecosystem, from freelance developers to venture-backed startups, this is the “open for business” signal they have been waiting for.
Here is the deep dive into what this means for the tech and business landscape.
1. The ‘Freelancer Freedom’ Clause: 100% Retention
Service exporters (which includes software developers, call centres, consultants, and digital agencies) can now retain 100% of their export proceeds in foreign exchange retention accounts for an indefinite period.
The Tech Impact:
- Previously: Exporters were often forced to surrender a portion of their USD earnings to the state or convert them to Birr within a specific timeframe, exposing them to depreciation risks.
- Now: A Nairobi-based VC or a London-based client can pay an Ethiopian dev shop in USD, and that shop can keep every cent in USD forever. This allows tech companies to build a war chest of hard currency to pay for foreign expenses (AWS bills, software licenses, foreign talent) without currency conversion losses.
2. The SaaS Unlock: International Cards for All
Authorised banks can now issue internationally recognised debit/credit cards to all foreign exchange account holders. These cards can be used for outbound retail payments, including e-commerce.
The Tech Impact:
- Friction Removed: Historically, paying for essential tools like GitHub, Figma, Jira, or cloud hosting (AWS/Azure/Google Cloud) was a bureaucratic nightmare involving intermediaries or black-market rates.
- Direct Access: Startups can now directly link their corporate FX cards to these platforms. If you have the dollars in your account, you can spend them globally. This integrates Ethiopian startups directly into the global software supply chain.
3. Investment Floodgates: Frictionless Repatriation
Investors can now repatriate net profits and dividends without requiring approval from the NBE. Commercial banks can handle this directly upon presentation of documents. Additionally, FDI companies (Foreign Direct Investment) can open FX accounts without a special approval letter from the NBE.
The Tech Impact:
- VC Confidence: The inability to get money out has been the single biggest deterrent for Venture Capital in Ethiopia. By removing the NBE approval bottleneck for dividends, the risk profile for foreign investors drops significantly.
- Exit Strategy: This signals to international investors that if they back an Ethiopian unicorn, they can actually realize their returns.
4. Bureaucracy Slashed: The Removal of ‘Red Tape’
The directive introduces several quality-of-life improvements that grease the wheels of commerce:
- Minimums Removed: The $100 minimum to open an FX savings account is gone. This democratises access for smaller gig workers and students.
- No Customs Declaration Needed: Residents entering Ethiopia do not need to declare foreign currency to convert it at a forex bureau.
- Education & Medical: Account holders can pay for family members’ education and medical expenses abroad directly from their FX accounts.
- Forward Exchange Transactions: Banks can now enter into forward exchange deals (hedging) without NBE approval. This allows sophisticated tech importers to hedge against currency fluctuation—a standard financial tool previously unavailable.
Why This Matters Now
The Context: Since the macro-economic reforms of July 2024, Ethiopia has been moving towards a market-based exchange rate. However, operational restrictions remained. This 2026 update (effectively Directive FXD/04/2026) is the “software patch” that fixes the bugs in the original operating system.
The “Why”: The NBE realises that services (code, BPO, consulting) are the fastest way to bridge the FX gap. Unlike coffee or textiles, digital exports have zero shipping time and high margins. By allowing 100% retention, the government is effectively incentivising the entire population to “earn dollars online.”
The Risk: While this liberalisation is positive, the success depends on the liquidity of the banks. Being “allowed” to withdraw USD is different from the bank actually “having” the physical cash. However, the ability to hold digital balances for international payments mitigates the need for physical cash.
