The National Bank of Ethiopia (NBE) plans to introduce a regulatory sandbox by the end of 2025, establishing a framework for banks to test financial innovations under regulatory oversight. The project is being developed with the Ethiopian Capital Market Authority (ECMA) and supported by the United Nations Development Programme (UNDP).

The sandbox is designed to provide a controlled environment for piloting products that do not yet fit within existing regulations, enabling regulators to assess risks while widening access to new financial services. The legal groundwork, including directives, regulations, and parliamentary approval, has already been finalized.

The initiative follows ECMA’s launch of its own regulatory sandbox in August 2024, which received 40 applications from licensed firms, startups, and technology providers. That programme, also supported by UNDP, is now in the process of screening applicants for its first cohort.