The National Bank of Ethiopia (NBE) has revised its Payment Instrument Issuer Directive, paving the way for mobile money platforms to offer services related to investing in securities. The directive, made public yesterday, aims to establish a more accommodating regulatory framework that fosters competition and innovation in the financial sector.
According to the new directive, mobile money platforms, with written approval from the National Bank and agreements with licensed financial market participants, can now facilitate their user’s investment in government and private securities electronically. These platforms are also authorized to handle payments of principal, interest (coupon), dividends, or any other returns arising from the users’ investment activities.
Experts interviewed by Shega highlighted the directive’s significance, as it liberates the sector for diverse use cases of mobile money platforms in Ethiopia’s upcoming secondary market.
“Just like you can transfer…
