EthSwitch S.C., the operator of Ethiopia’s national payment infrastructure, has opened an International Settlement Account in partnership with Bank of Abyssinia, marking a major step toward connecting Ethiopia’s payment system with global card networks.
The account is expected to support cross-border card transactions and strengthen Ethiopia’s participation in the international digital-payments ecosystem.
The arrangement follows recent foreign-exchange reforms introduced by the National Bank of Ethiopia (NBE), which allow eligible institutions to establish and maintain foreign-currency accounts.
EthSwitch has opened a dedicated multi-currency US dollar settlement account in its own name at Bank of Abyssinia. The local bank maintains a correspondent banking relationship with Citibank, enabling the settlement arrangement to connect with international financial infrastructure.
Abenezer Wondwossen, Chief Portfolio Officer at EthSwitch, told Capital that EthSwitch does not have a direct relationship with Citibank.
“We do not have a direct relationship with Citibank; we work exclusively with the Bank of Abyssinia,” he said. “We have opened our dollar account with the Bank of Abyssinia and are utilizing it as our settlement account.”
EthSwitch officials said the account is operational, although formal contractual procedures are still being finalized.
The new account is part of a project that has been under development for more than a year. The implementation plan consists of two phases.
The first phase focuses on accepting international payment cards in Ethiopia. Once fully launched, visitors, tourists and other international cardholders will be able to use cards issued in nearly 200 participating countries at ATMs and point-of-sale terminals connected to the Ethiopian payment network.
Abenezer said technical preparations for the first phase had been completed and regression testing concluded. The service is expected to go live within one to two months.
“The new settlement account enables cross-border payments—whether through cards or other payment methods—to be accepted and settled directly into a foreign-currency account,” EthSwitch CEO Yilbes Addis said in December 2025.
At the time, Yilbes said the arrangement represented a new settlement model for Ethiopia’s payment system and was being evaluated by the National Bank.
The second phase will allow Ethiopian customers to use locally issued cards abroad. Once implemented, cardholders will be able to make purchases, withdraw cash and conduct online transactions in participating countries.
The timing of the second phase will depend on regulatory approval, technical preparations and agreements with international payment networks.
The initiative follows a series of foreign-exchange and digital-payment reforms by the National Bank.
In July 2024, the central bank issued Foreign Exchange Directive No. FXD/01/2024, introducing a more competitive and market-based exchange-rate system. The directive also eased restrictions on foreign-currency accounts and gave exporters and commercial banks greater flexibility to hold foreign currency.
EthSwitch said the reforms created the conditions needed to establish an international settlement structure.
For decades, strict foreign-exchange controls and restrictions on foreign-currency accounts limited the ability of Ethiopian financial institutions to participate in international payment systems.
The new settlement account is expected to address some of those limitations by providing a dedicated mechanism for settling international card transactions.
Abenezer said EthSwitch had also submitted a request to the National Bank and was continuing to work through the approval process while partnering with Bank of Abyssinia.
EthSwitch’s initiative forms part of a broader effort to integrate Ethiopia’s payment infrastructure with regional and international systems.
The company has signed a memorandum of understanding with the National Payments Corporation of India to explore payment interoperability through platforms including India’s Unified Payments Interface and instant-payment systems.
The planned cooperation could enable Ethiopian and Indian customers to make purchases and withdraw cash through participating payment networks.
EthSwitch is also developing a national payment gateway designed to connect bank accounts, debit and credit cards and mobile-money services.
The gateway is intended to improve interoperability between financial institutions and payment platforms. The international settlement account will further support the transfer of foreign-currency funds into Ethiopian accounts through cards and other digital channels.
The services could benefit tourism, trade and investment by reducing reliance on cash and making payments more convenient for foreign visitors and international businesses.
The initiative is also aligned with Ethiopia’s National Digital Payments Strategy for 2026–2030, launched in December 2025 alongside EthioPay, the country’s instant-payment system.
The strategy focuses on expanding affordable, accessible and reliable digital financial services, while promoting innovation, trust and low-cost cross-border transfers through cards, mobile wallets and digital banking.
EthSwitch’s expansion comes as digital-payment activity in Ethiopia continues to grow.
The company reported a gross profit before tax of 2.6 billion birr during the 2025/26 fiscal year. It processed 387 million transactions during the period, with a combined value of 1.26 trillion birr.
Person-to-person transfers accounted for 242.6 million transactions valued at 1.06 trillion birr. ATM transactions reached 131.5 million, valued at 189.2 billion birr.
Point-of-sale transactions totaled 3.9 million, with a value of 10.7 billion birr, while ETHQR transactions reached 551,500, valued at 6.8 billion birr.
The introduction of international card services could make payments easier for foreign visitors and support businesses in tourism, hospitality, retail and aviation.
For Ethiopian customers, the second phase could improve access to international online services and allow them to make purchases abroad using locally issued cards.
The expansion will also require strong cybersecurity, fraud prevention, consumer protection and foreign-exchange oversight. Issues such as transaction fees, exchange-rate transparency and dispute resolution will need to be clearly addressed.
EthSwitch said it would continue working with the National Bank, local banks and other stakeholders as it moves toward full implementation.
