Imagine a world where your Ethiopian payment card works just as smoothly in India as it does at home. Ethswitch, the powerhouse behind Ethiopia's payment infrastructure, is on the cusp of making this a reality. They've completed the technical groundwork to link their domestic card systems with a whopping 32 international card networks, including India's rupee-based system, thanks to a partnership with the Discover Global Network. But there's a crucial step remaining: approval from the National Bank of Ethiopia (NBE).**
Ethswitch's CEO, Yilebes Addis, revealed in an exclusive interview that after over a year of meticulous technical preparations, the system is poised to launch the moment the NBE gives the green light for their proposed "International Settlement Account" (ISA). "We're essentially ready to go live," he stated, highlighting the anticipation surrounding this development.
This ISA is the key. It's designed to allow Ethiopian payment cards to be used seamlessly in India and the other 31 countries connected through Discover's network. But it's a two-way street! The ISA will also enable the acceptance of foreign currencies, like the Indian rupee, within Ethiopia's borders. Currently, only a select few Ethiopian banks and institutions operating abroad have access to correspondent or offshore accounts. Ethswitch's proposal aims to create a dedicated settlement account specifically for international card transactions, simplifying the process significantly.
"The new settlement account will facilitate the direct settlement of cross-border payments," Yilebes explained. This means money received via cards or other methods can be deposited directly into an account in a foreign country. This pioneering arrangement is currently under review by the National Bank.
And this is the part most people miss... This integration isn't happening in a vacuum. It's part of a larger regional push to create more interconnected payment systems. The recent 2025 State of Inclusive Instant Payment Systems (SIIPS) report by the African Nanda Foundation highlights ongoing discussions to integrate Ethswitch with continental projects like the Pan-African Payment and Settlement System (PAPSS) and Ghana’s Interbank Payment and Settlement Systems (GhiPSS). There's also an active card integration project involving the Central Bank of the United Arab Emirates.
Ethswitch has already taken steps towards interoperability. They signed a memorandum of understanding with India’s National Payment Corporation (NPCI) to enable digital payment compatibility through platforms like the Unified Payment Interface (UPI) and the Instant Payment Platform. In November 2023, it was reported that Indian financial institutions and individuals with NPCI cards could already make transactions or withdraw funds using UPI in Ethiopia, and vice versa. This shows the groundwork has been laid for this new ISA.
According to Yilebes, the National Payment Gateway approach will leverage Ethiopia’s growing digital payment ecosystem by linking bank accounts, credit and debit cards, and mobile money services. Opening the ISA will further streamline international trade, tourism, and investment by making it easier to transfer foreign currency funds into Ethiopian accounts through various payment channels. But here's where it gets controversial... This move has the potential to significantly boost Ethiopia's economy, but it also raises questions about currency control and the potential impact on local businesses. What do you think? Are you excited about this development, or do you have concerns? Share your thoughts in the comments below!
