Ethiopia Wins Global Finance Award as Central Bank Drives Bold Market Reforms

Addis Ababa, March 17, 2026 (ENA) —The National Bank of Ethiopia (NBE) has accelerated financial sector reform by shifting toward an interest rate-based, inflation-targeting monetary policy and adopting a market-based foreign exchange regime since 2024.

The central bank’s efforts have been internationally recognised, with the NBE winning the “Payments and Market Infrastructure Development – Wholesale Award 2026” from Central Banking, following a major overhaul of Ethiopia’s core financial infrastructure.

"[This award] strengthens our resolve to deepen reforms through market infrastructure development, reinforcing market integrity, monetary policy transmission, and sustainable growth under our Homegrown Economic Reform Agenda," said Eyob Tekalign, governor of the NBE.

According to the awarding body, the reforms include a comprehensive upgrade of Ethiopia’s financial market infrastructure.

 Central to this effort is the introduction of a new Central Securities Depository (CSD), designed to strengthen open market operations, enhance the treasury market, and support broader capital market development.

In parallel, the NBE has launched a retail primary market platform, the Tsega portal, aimed at expanding financial inclusion across the country.

These reforms form part of Ethiopia’s wider “homegrown economic reform” programme. “The Ethiopian government made a strategic decision a few years back to modernise and liberalise the economy,” said Naoll Addisu, senior technology adviser to the NBE governor. “One of the pillars included establishing a vibrant capital market.”

The legal foundation for the reform was established by Capital Market Proclamation No. 1248/2021, which created the Ethiopian Capital Market Authority and paved the way for the formation of the Ethiopian Securities Exchange, launched in January 2025.

A CSD is a cornerstone of modern financial systems, ensuring the safekeeping of securities and managing post-trade processes such as clearing, settlement, ownership transfer, and reporting.

Despite resource constraints, the NBE implemented the system within just 18 months. “We had to dig deep,” Addisu said, highlighting the rapid development of technical expertise and operational capacity. He described the platform as one of the fastest and most successfully implemented of its kind under challenging conditions.

Given Ethiopia’s large and youthful population—over half aged between 15 and 29—and its predominantly rural and diverse demographic, the central bank sought international expertise. It consulted the National Bank of Georgia and the Central Bank of Kenya in designing the system.

Ethiopia’s CSD was ultimately modelled on Georgia’s integrated approach, which serves both government monetary operations and private market participants within a unified infrastructure.

According to Irakli Kvirkvelia, a senior expert involved in the project, the initiative extended far beyond technology implementation. “It required close coordination among a wide range of stakeholders,” he said, including regulators, financial institutions, investors, and technology providers.

The system enables full dematerialisation of securities, replacing paper-based instruments with digital issuance and trading.

It supports delivery-versus-payment settlement in central bank money within seconds and integrates with trading and payment systems.

Following implementation, Ethiopia’s Ministry of Finance transitioned to issuing government securities through competitive public auctions, attracting strong demand and growing participation from non-bank and retail investors.

The CSD platform now supports more than 3,000 active traders, alongside multiple issuers and financial institutions.

According to the NBE, improved liquidity management and more attractive treasury bill rates indicate that the system is helping the central bank meet its monetary policy objectives.

The Tsega portal, launched in late 2025 and currently in beta testing, is expected to further expand access to capital markets, particularly for retail investors, supporting financial inclusion nationwide.

With financial backing from Financial Sector Deepening Africa, the reforms are strengthening market integrity, enhancing efficiency, and reducing operational risk—aligning Ethiopia’s financial system with international best practices.