NBE Repeals Mandatory DBE Bonds Directive, Freeing Bank Capital Allocation

As reported by Borkena

Summary

• The National Bank of Ethiopia issued Directive SBB/98/2025, repealing the previous Investment on DBE Bonds Directive (SBB/81/2021). The new directive took effect on December 31, 2025, and applies to all commercial banks operating in Ethiopia.
• The repealed directive had required banks to invest at least 1% of their audited outstanding loans and advances in Development Bank of Ethiopia bonds. Banks that had not met this threshold must comply by January 31, 2026, under transitional provisions. Investments made before the new directive will continue to follow the previous rules for governance purposes.
• The directive is anchored in the National Bank of Ethiopia Proclamation No. 1359/2025 and the Banking Business Proclamation No. 1360/2025. Removing the mandatory bond allocation gives banks more flexibility in how they deploy capital, including toward FX operations and lending.
• For BirrValue users, this change means banks have more freedom to allocate resources toward foreign exchange services and customer lending. Over time, this could support better FX availability and more competitive rates. Compare bank rates on [BirrValue](/banks) before converting.