Ethiopia Allows Foreign Investors, Diplomatic Missions to Import Fuel Directly

Ethiopia’s National Bank has amended its Franco Valuta Directive to allow foreign investors, diplomatic missions and international organisations to import fuel directly for their own consumption, marking a significant change in the country’s fuel supply framework.

Under the revised directive, eligible entities will be permitted to procure fuel using their own foreign exchange resources without relying on the state-owned Ethiopian Petroleum Supply Enterprise (EPSE) or obtaining letters of credit from local banks.

The move effectively enables approved organisations to bypass the government-controlled fuel supply system for their operational needs, representing the first time in recent years that non-government entities have been authorised to independently import and use fuel.

According to the directive, the quantity and value of fuel imports under the franco valuta arrangement will be determined based on approvals issued by the relevant recommending government authority.

While the reform grants greater flexibility to foreign investors and international institutions, EPSE will continue to oversee fuel imports and distribution for the broader domestic market, maintaining its central role in Ethiopia’s petroleum supply chain.

Beyond fuel, the amended directive expands the range of goods eligible for import under the franco valuta scheme, including commodities and capital equipment for international organisations, non-governmental organisations, charitable institutions, manufacturers and exporters.

Regulators opined that the changes are intended to facilitate the importation of essential goods while reducing pressure on the country’s foreign exchange reserves by allowing approved entities to finance purchases independently.