Whereas, a business process supported by information technology improves the efficiency, effectiveness and competitiveness of a microfinance institution;

Whereas, some microfinance institutions are running their operations manually or their operations are inadequately supported with information technology;

Whereas, it has become important to require microfinance institutions to automate at least their core business processes and their management information system;

Whereas, risks related to the usage of information technology should be adequately and periodically identified and managed to ensure the safety and soundness of individual microfinance institution and the microfinance sector as a whole;

Now, therefore, in accordance with Articles 14(2) (e) and article 34(2) of the Microfinance
Business Proclamation No. 626/2009 (as amended by Proclamation No.1164/2019), the National
Bank of Ethiopia has issued this Directive.