Observatory: ET banks/fintech, 2 October 2026

Addis Fortune reports that a bill requiring banks to check customers against the Fayda digital ID arrives as lenders' costs rise faster than income. Total expenses grew 91.9 per cent to 525.7 billion birr in 2024/25, consuming 81.3 per cent of income, up from 75.8 per cent, the outlet states, citing Bank of Ethiopia and industry data. The proposed requirement would add compliance and verification costs for banks already facing margin pressure. No implementation date or final legislative approval is given in the report.

Fact · Addis Fortune (@addis_fortune) · official figure: Bank of Ethiopia/industry data · link

FaydaVerse proposes four pricing categories and 11 tiers for its ID services, with rates tied to inquiry volume. Banks retrieving records for one million or more customers pay 10 birr per record, while those making 100,000 inquiries or fewer pay double. The structure rewards larger users and matters for financial institutions relying on the platform. The pricing is announced, not measured, and no effective date is specified. It follows the introduction of a bill that would require banks to use Fayda digital ID for customer checks.

Fact · Addis Fortune (@addis_fortune) · announced, not measured · link

Ethiopia joins the Pan-African Payment & Settlement System (PAPSS), enabling cross-border transactions to settle in African currencies instead of external ones such as the dollar or euro. The move expands PAPSS membership and supports regional trade integration by reducing reliance on foreign clearing systems. The announcement is not measured, and no start date or transaction volumes are provided. PAPSS is an initiative of the African Export-Import Bank. Ethiopia's participation follows similar moves by other African central banks and is expected to lower settlement costs and shorten transaction times for regional trade.

Fact · Addis Fortune (@addis_fortune) · announced, not measured · link

Amigos Savings & Credit Cooperative Society launches a technology-driven, paperless service centre, aiming to broaden access to its savings and loan products. The move reflects a wider push by Ethiopian cooperatives to use digital tools to reach more members and cut paperwork. The launch is the cooperative's own announcement; no details on cost, location or expected member reach are provided. It comes as financial institutions in Ethiopia increasingly adopt digital channels to serve customers, though cooperatives have generally lagged banks in technology adoption.

Fact · Addis Fortune (@addis_fortune) · Amigos Savings & Credit Cooperative Society's own announcement · link

Ethiopia's National Bank has declined to approve board members elected at Anbessa Insurance, according to the Ethiopian Reporter. The report gives no reason for the decision and names no individuals. The rejection leaves the insurer's elected board appointments unconfirmed by the regulator. The item is reported by the outlet and not published on the National Bank's own channels. Under Ethiopian insurance regulation, board appointments require regulatory approval before taking effect. The report does not indicate whether Anbessa Insurance will propose alternative candidates or challenge the decision.

Fact · Ethiopian Reporter (@EthioReporter) · reported by outlet; not on National Bank's own channels · link

The Ethiopian Reporter reports that freezing bank accounts in connection with conflict puts both banks and depositors at risk, according to the source. The report does not name the accounts, institutions or individuals affected, nor does it give figures or dates for the freezes. The item is reported by the outlet and has not been confirmed by regulators or banks. Account freezes linked to conflict can disrupt liquidity and undermine confidence in the banking system, the report suggests.

Fact · Ethiopian Reporter (@EthioReporter) · link

At the Ethiopia Finance Forum 2026, a model centred on a National Housing Fund and a Mortgage Refinance Company was presented. The government and the International Finance Corporation plan a refinance company with 100 billion birr in capital, with the IFC committing at least 200 million US dollars. It would give lenders longer-term wholesale funding, separating mortgage origination from funding. The plan is announced, not shipped; no timeline for establishment or operational details were provided. The model is intended to address a shortage of long-term housing finance in Ethiopia, where banks typically rely on short-term deposits to fund mortgages.

Plan · Birr Metrics · announced, not shipped · link