The National Bank of Ethiopia (NBE) has announced plans to establish a dedicated Cybersecurity and Fraud Directorate as part of its newly drafted National Digital Payments Strategy (2026–2030). This move aims to address the rising security vulnerabilities in the country's digital financial sector. The strategy comes in response to a staggering 1.3 billion birr lost to fraud across the financial sector in 2024 alone.
Ethiopia has made significant strides in financial inclusion, with mobile money accounts surging from 12.2 million in 2020 to 139.5 million by 2025. However, this rapid growth has also attracted malicious actors, increasing the risk to public trust and the long-term viability of the digital economy. According to NBE findings, attempted cyberattacks targeting public and private institutions spiked by 115% during the first half of 2024.
The proposed directorate will centralize defense mechanisms, deploy shared artificial intelligence-based fraud detection tools, and enforce strict national cybersecurity frameworks in coordination with the Information Network Security Administration (INSA). The strategy also introduces clear consumer protection and liability guidelines to ensure victims have reliable avenues for recourse.
The NBE aims to drive fraud down to an optimal 0.0008% of total transaction value by 2030 by holding all providers to strict, standardized fraud reporting compliance. The central bank emphasizes that building a secure, trusted, and resilient ecosystem is a mandatory prerequisite for ensuring that Ethiopia's digital transformation ultimately benefits all citizens safely and equitably.
The directorate will address the digital literacy gap, where nearly two-thirds of adults report not knowing how to use mobile money. This gap poses a serious risk to public trust and the long-term viability of the digital economy. By establishing the directorate, the NBE hopes to mitigate these risks and ensure a secure digital financial landscape.
The newly proposed directorate will also focus on addressing Authorised Push Payment (APP) risks. The NBE strategy introduces guidelines to ensure that victims of APP scams have reliable avenues for recourse. This move is expected to increase public trust in digital financial services and promote a secure and resilient ecosystem.
The establishment of the Cybersecurity and Fraud Directorate is a key step towards safeguarding Ethiopia's rapidly expanding digital financial landscape. The NBE's efforts to combat rising cyber threats and fraud losses are expected to promote a secure and trusted digital economy, ultimately benefiting all citizens.
Key points
- The National Bank of Ethiopia to establish a dedicated Cybersecurity and Fraud Directorate to combat rising fraud and cyber threats.
- Ethiopia lost 1.3 billion birr to fraud across the financial sector in 2024.
- The directorate will centralize defense mechanisms and enforce strict national cybersecurity frameworks.
