Ethiopia digital payments industry is facing fresh uncertainty after three of the country’s leading licensed payment gateway operators appealed to the National Bank of Ethiopia (NBE) for urgent intervention over tax enforcement actions they say threaten due process and sector stability. The operators—Chapa Financial Technologies (fintech), ArifPay Financial Technologies, and SantimPay Financial Solutions—have jointly written to NBE Governor Dr. Eyob Tekalign, requesting immediate regulatory engagement following enforcement measures initiated by the Ministry of Revenue.
According to the companies, commercial banks have been instructed to enforce direct tax collection from their accounts despite ongoing administrative review and formal appeal processes under Ethiopian tax law that have yet to be concluded. The firms argue that proceeding with enforcement while disputes remain unresolved undermines established legal procedures and creates uncertainty within the financial technology ecosystem.
The latest dispute comes against the backdrop of heightened regulatory scrutiny of Ethiopia’s fintech sector. In December 2025, the Ministry of Justice ordered the freezing of accounts belonging to ten payment gateway operators, including Chapa, SantimPay, and ArifPay, as part of investigations into suspected tax compliance issues. Financial institutions were also directed to submit detailed transaction histories, Know Your Customer (KYC) documentation, and other financial records during the probe.
In their joint appeal to the central bank, the three companies warned that continued enforcement actions could disrupt the stability and growth of Ethiopia’s digital payments infrastructure. They emphasized that the sector is still developing and remains sensitive to regulatory and operational shocks, particularly where legal processes are not fully concluded.
The operators have called on the National Bank of Ethiopia to facilitate urgent dialogue between the Ministry of Revenue, commercial banks, and licensed payment service providers in order to resolve the dispute. They have also urged the suspension of enforcement actions until all appeal proceedings are completed, and requested measures to safeguard the operational stability of licensed fintech firms.
The appeal highlights growing tensions between regulators and fintech operators as Ethiopian authorities intensify efforts to strengthen tax compliance and expand domestic revenue collection. While the government continues to prioritize fiscal enforcement, industry players warn that policy execution must balance compliance objectives with legal due process and sector sustainability.
