Whereas, promoting strong and viable microfinance sector in Ethiopia is crucial for financial inclusion and economic growth;

Whereas, proper licensing and supervision of microfinance institutions and the microfinance sector is important to ensure the safety and soundness of the microfinance business;

Whereas, establishing clear, objective and transparent requirements for licensing and renewal is essential to promote the sector;

Now ,therefore, in accordance with, Articles 5( 1 a & b), 5 (2), 6 (2), 27 (2) and 28 of Microfinance Business Proclamation No. 626/2009, the National Bank of Ethiopia hereby issues these directives.