DIRECTIVE-NO.-FVD012026-IMPORT-ON-FRANCO-VALUTA_
The National Bank of Ethiopia issued Directive No. FVD/01/2026 to establish a modern regulatory framework for Franco Valuta imports, which permit the shipment of goods without utilizing the nation’s formal foreign exchange reserves. This policy aims to foster trade and investment while mitigating economic risks such as illicit financial flows and currency circumvention. It identifies eligible participants, including foreign investors, diplomatic missions, and returning diaspora members, and details specific categories for capital goods, raw materials, and personal effects. To ensure transparency, the directive mandates the use of a digital tracking system called FEMOUS and requires strict adherence to documentation standards for customs clearance. By formalizing these procedures, the government seeks to balance economic flexibility with rigorous accountability and oversight. The final sections of the document outline legal penalties for non-compliance and provide a comprehensive schedule of permitted goods and their respective value limits.
Penalties for Contravention of the Directive
According to the Import on Franco Valuta Directive No. FVD/01/2026, individuals who violate its provisions are subject to one or more administrative measures and penalties, which include monetary penalties in accordance with relevant laws, the confiscation of goods as prescribed by applicable legislation, and criminal liability pursuant to the National Bank of Ethiopia Proclamation No. 1359/2025 or any other relevant laws.
The directive specifically identifies three actions as violations, which are the misuse of Franco Valuta, the making of a false declaration, and the circumvention or avoidance of established controls.