Ethiopia’s Central Bank Waives National ID Requirement for Diaspora for Two Years

The National Bank of Ethiopia (NBE) has announced a temporary measure allowing Ethiopian-born foreign nationals residing abroad to access banking services without the need for a Fayda ID. 

While Fayda registrations have become a precondition to open bank accounts in Addis Ababa, the central has decided to waive off the precondition for the diaspora until December 2026 in a bid to avoid potential foreign exchange inflows.

The decision was published in a circular letter for all banks in Ethiopia dated February 5, 2025. 

Back in November, NBE mandated that all citizens must register for a national digital ID “Fayda", to open a bank account before a series of deadlines.  The mandate which began implementation in Addis Ababa on January 1, 2025, will be rolled out nationwide by January 1, 2026. 

Existing bank account holders are also impacted, as they will be required to obtain a digital ID by December 2026 to keep their access to the accounts. 

Increasing remittance inflows and overall foreign exchange reserves is one of the key targets under the prevailing economic reform agenda.

The NBE has also launched "Debo," an awareness initiative associated with the recently issued Foreign Exchange Directive 01/2024. This directive provides guidelines on various aspects of foreign exchange regulations, including Independent FX bureau licenses, foreign currency accounts, and remittance services.