EthSwitch S.C., operator of Ethiopia’s national payment infrastructure, has opened an international settlement account with Bank of Abyssinia as part of efforts to connect the country’s payment system with global card networks.
The dedicated multi-currency US dollar account is expected to support settlement of cross border card transactions and strengthen Ethiopia’s participation in international digital payments. Bank of Abyssinia maintains a correspondent banking relationship with Citibank, providing access to international financial infrastructure, while EthSwitch’s direct banking relationship remains with Bank of Abyssinia.
The initiative follows foreign exchange reforms introduced by the National Bank of Ethiopia that expanded the ability of eligible institutions to establish and maintain foreign currency accounts.
EthSwitch said the account is operational, although some contractual procedures remain under completion. The broader international payments project has been under development for more than a year and will be implemented in two phases.
The first phase will allow international payment cards to be used at ATMs and point of sale terminals connected to Ethiopia’s payment network. Technical preparations and regression testing have been completed, with the service expected to be launched within the coming months.
The second phase is intended to allow holders of Ethiopian-issued cards to make purchases, withdraw cash and conduct online transactions abroad. Implementation will depend on regulatory approvals, technical readiness and agreements with international payment networks.
The initiative forms part of wider efforts to modernize Ethiopia’s payments infrastructure. EthSwitch is also working on interoperability initiatives, including cooperation with India’s National Payments Corporation, and is developing a national payment gateway linking bank accounts, cards and mobile-money services.
EthSwitch processed 387 million transactions valued at Birr 1.26 trillion during the 2025/26 fiscal year. The company reported gross profit before tax of Birr 2.6 billion during the period.
International card connectivity could support tourism, trade, aviation, hospitality and retail while reducing reliance on cash and improving access to cross border digital payment services.
Source: Capital Ethiopia Newspaper
