Central Bank Approves Debub Global Interest Free Banking Venture

Dr. Tesfaye Boru


Central Bank Approves Debub Global Interest Free Banking Venture

The National Bank of Ethiopia (NBE) has greenlighted Debub Global Bank's proposal to kick off an interest-free banking operation. Debub Global, which profited 1.1 billion Br in the last fiscal year, is going to avail Wadi'a saving, investment saving, financing services, international banking, foreign exchange services, bank guarantees, and remittance services through its IFB window. Several banks have already begun interest-free window operation services including, Dashen Bank, Bank of Abyssinia, Wegagen Bank, and the Cooperative Bank of Oromia. Debub Global, which was established in 2012, plans to begin operation in dedicated windows selected among its 110 branches in Addis Abeba and other cities. In 2008, the central bank issued a proclamation that allowed interest-free banking service, but it limited it to window service. A later directive issued, however, has relaxed the rules and allowed the establishment of fully-fledged interest-free banks, and the likes of ZamZam and Hijra are gearing up to start operations in the coming months.


Radar

Amendment Expands Access for Foreign Traders

Foreign participation in Ethiopia's wholesale, retail, import, and export trade sectors has come under renewed focus as the Ethiopian Investment Board(EIB) approved a significant amendment to Directive No. 1001/2016  in its meeting on May 23, 2025. The amendment, proposed by the Ethiopian Investment Commission(EIC), focuses on refining the legal framework governing foreign investment in these sectors. The decision is part of a broader strategy to enhance the country's appeal as an investment...


Radar

NBE Sets Four Percent Ceiling on Foreign Exchange Fees

The National Bank of Ethiopia (NBE) issued a new foreign exchange market directive on May 20, 2025, that caps commercial banks' forex service fees at a maximum of four percent. Banks are instructed to adapt competitive, transparent, and streamlined pricing for all forex-related services. Effective May 26, 2025, total charges for purchasing foreign exchange whether for imports, service payments, or cash note purchases must not exceed the newly set limit. The directive also prohibits banks f...


Radar

SantimPay Launches Zero-fee Digital Remittance Platform

SantimPay has rolled out FrankRemit, first fully integrated, zero-fee digital remittance platform, in partnership with Bank of Abyssinia(BOA). The service smoothly connects all commercial banks and major mobile money providers, including Telebirr, M-Pesa, and CBE Birr which is a first of its kind in the country. FrankRemit is expected to revolutionise how the Ethiopian diaspora sends money home. Developed locally and tested over the past two weeks with successful transfers from multiple count...