Ethiopia’s draft interest-free finance strategy proposes tax changes
A draft central bank strategy seeks comparable tax treatment for interest-free financing and proposes national coordination and Sharia oversight, The Reporter reported on October 10, 2026.
In short
- A draft central bank strategy seeks comparable tax treatment for interest-free financing and proposes national coordination and Sharia oversight, The Reporter reported on October 10, 2026.
Ethiopia’s central bank is proposing changes to the tax treatment of interest-free finance under a draft national strategy, according to The Reporter’s October 10, 2026 report.
The proposal addresses transactions that involve several asset purchases or ownership transfers. These steps can attract repeated tax charges, raising costs compared with conventional financing. The draft seeks comparable tax treatment for economically equivalent arrangements.
The newspaper also reported proposals for a national coordination office and a central Sharia committee to guide compliance across the sector. The coordination office would bring government and industry together without exercising regulatory powers.
The measures remain proposals in a draft strategy. The report does not establish that tax amendments or the proposed institutions have been approved, or give an implementation date. Their significance lies in whether Ethiopia can accommodate asset-based financing without imposing additional costs solely because of its contractual structure.
