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.

The Ethiopian Electric Utility (EEU) is embarking on a 25-year modernization initiative to transform its electricity distribution system into a digitally managed smart grid. This ambitious roadmap aims to enhance reliability, reduce outages, and prepare the network for rapidly increasing power demand in Addis Ababa.

Through its Smart Grid Transformation Program, slated for 2026–2035, EEU plans to evolve from a traditional utility into a modern, data-driven, and customer-focused power company. The utility’s goal is to achieve at least Level Three of the Smart Grid Maturity Model (SGMM) within ten years, a significant leap from its current Level One status.

This smart grid initiative is projected to require an investment of up to USD 640 million. It will introduce advanced digital technologies, real-time network monitoring, automated fault detection, improved customer services, and stronger grid management capabilities.

“The transformation is about creating a smarter, more resilient, and digitally integrated distribution network that can respond to increasing electricity demand and operational challenges,” stated EEU officials.

The Smart Grid Maturity Model is an international framework utilities use to measure progress in modernizing electricity networks. Level One signifies the early stages of smart grid development, characterized by exploration and pilot projects. In contrast, Level Three indicates that smart grid solutions are integrated across operations to enhance efficiency and performance.

As part of this transformation, EEU plans to deploy Advanced Metering Infrastructure (AMI), digital customer platforms, improved billing systems, and data-based decision-making tools. The utility will also introduce demand-side management programs, including time-of-use tariffs, demand response systems, electric vehicle integration, distributed energy resources, and microgrid development.

Key components of the smart grid roadmap also include cybersecurity enhancements, stronger telecommunications systems, and workforce development, as EEU prepares for a more complex energy sector.

The smart grid transformation is closely linked with EEU’s broader 25-year Electricity Distribution Master Plan, which aims for substantial improvements in electricity reliability, particularly in Addis Ababa.

Under the first phase of the master plan, EEU targets a 99.9 percent reliable electricity supply in the capital within four years. This short-term program requires an estimated USD 1.33 billion investment and will focus on upgrading overloaded feeders, expanding network capacity, improving redundancy, and strengthening distribution infrastructure.

“The primary objective of the short-term implementation is to establish a reliable electricity supply in Addis Ababa,” Chala Aman, project manager of the master plan, told Capital. “The city faces significant supply constraints, including frequent interruptions, unmet demand, and customers who remain without electricity access despite being located within the capital.”

He stated that a significant portion of Addis Ababa’s distribution network operates beyond its original design capacity, leading to frequent interruptions and hindering the utility’s ability to connect new customers.

“To achieve reliability, we must reduce the frequency of power interruptions. We will upgrade feeders to standard operating capacity,” Chala explained.

The broader 25-year distribution roadmap estimates that Ethiopia will need USD 30.6 billion to expand and modernize its electricity network by 2049. Electricity demand is projected to increase almost ninefold, from approximately 4,300 MW currently to about 39,327 MW.

The first phase of this plan involves constructing 16,500 kilometers of new medium-voltage distribution lines, rehabilitating 9,700 kilometers of existing lines, undertaking over 21,800 distribution transformer interventions, and installing an additional 6,945 MVA transformer capacity.

Addis Ababa is slated to receive the largest share of the initial investment, with USD 575 million allocated for upgrading the capital’s distribution network, while Oromia will receive approximately USD 478 million.

The master plan was developed after a detailed assessment of the existing network, which scrutinized around 1,100 medium-voltage feeders, 183 primary substations, and nearly 79,000 kilometers of mapped distribution lines.

The assessment revealed 271 feeders with unacceptable voltage levels and 182 feeders experiencing thermal overloading. Additional challenges identified included aging infrastructure, overloaded transformers, limited switching capacity, insufficient load transfer capability, and high technical losses.

The EEU anticipates that the modernization program will increase medium-voltage feeders from approximately 1,100 to over 1,400, improve the average minimum network voltage from 0.838 per unit to 0.925 per unit, and reduce active power losses by about 38 percent.

EEU Chief Executive Officer Getu Geremu commented that the master plan signifies a major stride toward modernizing Ethiopia’s electricity distribution system through digitalization, enhanced efficiency, and improved customer service.

The utility expects this roadmap to bolster Ethiopia’s industrial growth, urban expansion, and the National Electrification Program (NEP 3.0), which aims to achieve universal, reliable, and sustainable electricity access by 2035.