The National Bank of Ethiopia (NBE) has authorized a comprehensive legal framework for Franco Valuta imports, effective last week, to institutionalise a trade channel previously defined by regulatory gaps.
Governor Eyob Tekalegn (PhD) sanctioned the regulation to target licensed investors, manufacturing enterprises, and strategic projects. The directive integrates the Foreign Exchange Monitoring and Orchestration Unified System (FEMoUS) to ensure transactions are digitally traceable by the Customs Commission. The NBE acknowledged that the previous lack of oversight had created risks of misreporting and illicit financial flows.
The mandate covers capital goods and raw materials while setting duty-free thresholds for the diaspora. Returning investors are permitted personal effects with an FOB value of up to 10,000 dollars; first-time residents are capped at 5,000 dollars. To ensure compliance, importers must submit proforma invoices and shipping documents via the FEMoUS platform. The central bank warned that false declarations or attempts to circumvent controls would result in penalties, including confiscation or criminal liability.
The overhaul signals a return to a policy area for Eyob, who previously oversaw several revisions to Franco Valuta directives during his tenure as State Minister for Finance.
The NBE aims to leverage external capital for industrial growth while shielding national reserves from immediate pressure. However, the framework’s success depends on the institutional capacity to prevent the circumvention of foreign exchange controls through enhanced digital oversight.
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