Starting January 1, 2024, residents of Addis Ababa must present Fayda national digital IDs to open bank accounts. The National Bank of Ethiopia (NBE) announced this requirement in a letter signed by Vice Governor Solomon Desta on November 26.
The directive sets key deadlines:
- Addis Ababa banks must enforce the rule by January 1, 2024.
- Banks in major cities must comply by July 1, 2025.
- All banks nationwide must adopt the system by January 2026.
Existing account holders also face a deadline. They must obtain Fayda IDs by December 2026 to retain access to their accounts.
The NBE allows digital onboarding, making it easier to open accounts remotely. Customers can complete the process online if they provide all required details.
This initiative is part of Ethiopia’s push to expand digital identification. Authorities launched the Fayda project in July 2023 with a $350 million World Bank grant. The goal is to register 90 million Ethiopians. So far, nearly 10 million people have signed up.
Prime Minister Abiy Ahmed (PhD) has linked Ethiopia’s digital economy growth to the success of the Fayda ID project. Banks are expected to invest in necessary equipment to support the nationwide rollout.
The new system aims to improve identity verification, enhance financial inclusion, and reduce risks for financial institutions.
