How to pay Chinese suppliers from Ethiopia
To pay a Chinese supplier from Ethiopia, hold an import license, apply to your bank for an import permit, and pay the supplier in US dollars through the bank by letter of credit, cash against documents or transfer, using a foreign currency account or dollars bought from the bank. Since NBE Directive FXD/05/2026 took effect on 25 May 2026, banks can approve letters of credit and cash against documents on acceptance for foreign currency and retention account holders without prior NBE approval. This guide covers the rules, the routes, published bank charges, the documents and the 2026 ban on unauthorized crypto.
- NBE Directive FXD/01/2024, effective 29 July 2024, let banks trade foreign currency at negotiated rates, allowed imports of any value once documents are submitted, and removed the import waiting list and restrictions on 38 product categories.
- Directive FXD/05/2026, in force from 25 May 2026, authorizes banks to approve letters of credit and cash against documents on acceptance for foreign currency and retention account holders without prior NBE approval.
- Under the same directive, importers holding foreign currency accounts may order or initiate a shipment before bank approval, with payment processed only after the required documents are submitted and verified.
- An import application is valid for 120 calendar days, and since February 2026 banks may extend it for good cause without a fixed end date.
- The NBE's notice of 25 May 2026 requires banks to set letter of credit fees on an annualized basis and apply them pro rata to the credit's actual tenor, within the maximum the NBE set earlier.
- The NBE's Public Notice on Virtual Assets of 23 July 2026 prohibits the use, transfer and settlement of virtual assets, including stablecoins, unless the NBE expressly authorizes it.
How to pay a Chinese supplier from Ethiopia: the short answer
An Ethiopian business pays a Chinese supplier through its Ethiopian bank. It needs an import license, it applies to the bank for an import permit for each order, and the bank pays the supplier in US dollars against documents. The National Bank of Ethiopia (NBE), the central bank, sets the rules through its foreign exchange directives, and they have changed several times since the birr was floated in July 2024.
The usual sequence for an order from China is:
- Agree the price, the payment terms and the Incoterm with the supplier, and get a proforma invoice. An Incoterm is a standard trade term, such as FOB or CIF, that sets who pays freight and insurance.
- Apply to your bank for the import permit, with the proforma invoice, your import license and your TIN certificate. The import application is valid for 120 calendar days.
- Agree the payment mode with the bank: a letter of credit, cash against documents, or a transfer.
- Pay the supplier in dollars by SWIFT through the bank, from your foreign currency account or with dollars bought from the bank.
- Clear the goods with the customs declaration and the documents the bank and customs require.
SWIFT is the international messaging network banks use for cross-border payments, and each bank has an 8 or 11 character SWIFT code. This guide covers the Ethiopian side of each step. For the supplier's side, such as how Chinese factories invoice and how to pay a Hong Kong account, see our general guide on how to pay suppliers in China.
NBE rules for paying imports after the 2024 float
Three NBE directives now shape every import payment. FXD/01/2024 set the framework when the birr was floated. FXD/04/2026 and FXD/05/2026 amended it in 2026.
FXD/01/2024: the float
The NBE's press release of 29 July 2024 states that banks may trade foreign currency with clients at freely negotiated rates, and that banks will allow imports of goods of any value once the documents are submitted. The import waiting list and the restrictions on 38 product categories were removed. Franco valuta imports, which are imports paid without foreign currency from an Ethiopian bank, are permitted subject to customs, tax and other rules. Capital outflows remain restricted.
FXD/04/2026: longer import applications and bank-approved supplier credit
Issued on 12 February 2026, this amendment let banks extend the 120-day validity of an import application for good cause, with no fixed end date, where previously they could add only 30 days. Supplier credit, where the supplier ships first and is paid later, is now reviewed and approved by commercial banks instead of the NBE, with an undertaking that the importer keeps to a 60:40 debt to equity ratio.
FXD/05/2026: letters of credit and CAD on acceptance
In force from 25 May 2026, this amendment authorizes banks to approve letters of credit on acceptance and cash against documents (CAD) on acceptance for institutions holding foreign currency accounts, including retention account holders, without prior NBE approval. Those importers may also order or initiate a shipment before bank approval, but payment is processed only after the required documents are submitted and verified.
| Rule | What it says | Source |
|---|---|---|
| Exchange rate | Negotiated between bank and client | FXD/01/2024 |
| Imports | Any value allowed once documents are submitted; waiting list and 38-category restrictions removed | FXD/01/2024 |
| Franco valuta imports | Permitted, subject to customs, tax and other rules | FXD/01/2024 |
| Import application | Valid for 120 calendar days; banks may extend for good cause | FXD/04/2026 |
| Supplier credit | Approved by commercial banks, subject to a 60:40 debt to equity undertaking | FXD/04/2026 |
| LC and CAD on acceptance | Banks may approve for foreign currency and retention account holders without prior NBE approval | FXD/05/2026, from 25 May 2026 |
| Shipment before bank approval | Allowed for foreign currency account holders; payment after documents are verified | FXD/05/2026 |
| LC fees | Annualized and applied pro rata to the tenor, within the NBE's earlier maximum | NBE notice of 25 May 2026 |
Sources: National Bank of Ethiopia press release on FXD/01/2024 (29 July 2024); Mondaq, Mekdes & Associates, on FXD/04/2026 (17 February 2026); NBE Directive FXD/05/2026; NBE notice of 25 May 2026. As published on 29 October 2026. Confirm current rules with your bank.
A retention account is a foreign currency account at an Ethiopian bank that holds the share of export proceeds an exporter may keep. An importer that also exports can therefore pay a Chinese supplier from dollars it already holds, and the 2026 changes give account holders the faster route.
How the money reaches a Chinese supplier
Most Chinese suppliers invoice in US dollars, and many sell through a Hong Kong trading company with a Hong Kong bank account. An Ethiopian importer pays through its bank in one of the ways below. Whichever route you use, the beneficiary should be the company named on the proforma invoice in your import permit.
| Payment mode | How it works | Fit with the Ethiopian rules |
|---|---|---|
| Letter of credit at sight | Your bank promises to pay the supplier when it presents documents that match the credit | Fees annualized and applied pro rata to the tenor since May 2026 |
| Letter of credit on acceptance | As above, but payment falls on a set date after compliant documents are presented | Bank may approve without prior NBE approval for foreign currency account holders |
| Cash against documents on acceptance | The supplier's bank releases the shipping documents once you accept a time draft | Bank may approve without prior NBE approval; shipment may start before bank approval |
| Transfer by SWIFT | Your bank sends dollars to the supplier's account against the permit and documents | Ask your bank how it treats a deposit before shipment |
| Supplier credit | The supplier ships first and is paid later under a credit agreement | Approved by commercial banks since February 2026 |
| Franco valuta | Goods paid without foreign currency from an Ethiopian bank | Permitted, subject to customs, tax and other rules |
Sources: NBE Directive FXD/05/2026 definitions and amendments; NBE press release on FXD/01/2024; Mondaq on FXD/04/2026. As published on 29 October 2026.
Cash against documents, also called a documentary collection, sends the shipping documents through the banks, and you receive them only after you pay or accept a bill of exchange. A bill of lading is the document the shipping line issues when it receives the goods, and you need the original to collect them.
What the supplier's bank checks
China manages foreign exchange through the State Administration of Foreign Exchange (SAFE). As summarized by PNC Bank, a Chinese company must be on SAFE's list of companies with goods trade foreign exchange business, and the supplier's bank verifies each receipt using documents such as the contract, invoice and customs declaration. The remitter and the beneficiary must be the parties to the contract. A payment from a company that is not on the contract can be held while the supplier's bank asks questions, so the payer should always be your company and the beneficiary the seller on the invoice.
Choosing a mode for a Chinese order
A first order with a new factory is usually the case for a letter of credit, because neither side has a track record with the other. Repeat orders with a supplier you know can move to cash against documents on acceptance, which costs less and, since May 2026, no longer needs prior NBE approval for account holders. Agree the mode with the supplier before the proforma invoice is issued, because the bank approves the permit against it.
What it costs: published bank charges
Each Ethiopian bank publishes its own tariff for international banking. The table shows one bank's published charges, as an example of the items to budget for on each order.
| Item | Published charge |
|---|---|
| Exchange commission, local account or cash | 2.50% |
| Amendment of a letter of credit (quantity, price, supplier or other terms) | USD 250 per request |
| Document examination, import LC and CAD | USD 250 |
| SWIFT charge | USD 80 per page |
| Supplier credit handling fee | 1% of the invoice value, minimum USD 200 |
| Custody of documents held beyond 30 days | USD 250 flat per month |
Source: Bunna Bank, approved international banking terms and tariffs, announcement dated 19 October 2024, as published on 29 October 2026. Other banks set their own charges, and the NBE's notice of 25 May 2026 requires letter of credit fees to be annualized and applied pro rata, so ask your bank for its current schedule.
The NBE's May 2026 notice is the main change to plan around. Letter of credit fees for foreign currency and retention account holders must be set as an annual rate and charged in proportion to the credit's actual tenor, so a three-month credit should carry about a quarter of the annual rate. The notice states that the annual rate may not exceed the maximum the NBE set earlier, without restating the figure.
Three costs sit outside the tariff. The first is the exchange rate if you buy dollars with birr, which banks now negotiate with each client, so ask for the rate before you confirm. The second is correspondent bank charges deducted on the way to China. The third is the supplier's own bank charge. Send SWIFT payments with the charge code OUR, which means you pay all transfer fees and the supplier receives the full invoice amount. SHA shares the fees, so intermediary deductions come out of the amount, and BEN puts all fees on the supplier. Our guide to SWIFT fees under OUR, SHA and BEN explains the difference.
Documents for the bank and for customs
The bank, customs and the supplier's bank each match the same facts: the supplier's name, the invoice number, the value and the goods. Keep them identical across every document.
| Stage | Document | Issued by |
|---|---|---|
| Before trading | Import license and import registration number; TIN certificate; VAT certificate | Regional trade bureau; tax authority |
| Before paying | Proforma invoice; import permit from the bank (application valid 120 days) | Supplier; importer's bank |
| Each payment | LC, CAD or transfer instruction quoting the permit and invoice numbers; SWIFT confirmation | Importer and bank |
| Before shipment | Pre-shipment inspection clean report of findings, where required | Inspection company |
| After shipment | Bill of lading or airway bill, commercial invoice, packing list, certificate of origin, insurance certificate | Carrier, supplier, insurer |
| Clearance | Customs import declaration; transit document where the goods transit another country | Importer's customs agent |
| Food, drugs and medical products | Ethiopian Food and Drug Administration certification or registration | EFDA |
Source: International Trade Administration, Ethiopia import requirements and documentation (last published 18 January 2024, before the July 2024 float); NBE directives cited above. Typical sequence; requirements vary by bank and product. As published on 29 October 2026.
The ITA notes that import licensing was decentralized to regional trade bureaus in July 2022 and that most regions now use an online process. Keep the company name identical on the license, the TIN certificate and the bank account, because a mismatch is a common cause of delay at the bank.
Agents, franco valuta and crypto: what goes wrong
Some importers pay through an agent abroad who is paid in birr in Addis Ababa, or through relatives or traders who hold dollars outside Ethiopia. The facts below are what an importer should weigh before using these routes.
- Franco valuta is a recognized route, not an informal one. Imports paid without foreign currency from an Ethiopian bank are permitted under FXD/01/2024, subject to customs, tax and other rules. Paying an agent in birr for dollars abroad is a different matter, and takes the payment outside authorized channels.
- The supplier's bank may query it. China's rules expect the payer to be the party on the contract. A transfer from an agent's account is a payment from a third party.
- There is no trace. A SWIFT transfer through your bank carries a reference and can be traced. Birr handed to an agent cannot.
- Stablecoins are prohibited unless authorized. As summarized by Dablo Law Firm for LEX Africa, the NBE's Public Notice on Virtual Assets of 23 July 2026 prohibits the use, purchase, sale, exchange, transfer and settlement of virtual assets unless the NBE expressly authorizes it, covering wallets, exchanges, brokers and OTC desks. Paying a Chinese supplier in USDT from Ethiopia falls within that prohibition.
The import side does not change with the payment route: goods still need the license, the customs declaration and the documents above to clear.
Where Helm fits
Helm is a financial technology company, not a bank. Accounts are held with regulated partner institutions. A Helm account gives a company USD account details in its own name, with a US routing and account number that receives ACH, Fedwire and SWIFT payments.
For a company resident in Ethiopia, a Helm account is an account outside Ethiopia, so it fits only where the NBE rules allow it:
- With NBE approval. A resident company that holds NBE approval for an account abroad can send international payments by SWIFT to the supplier's account in China or Hong Kong, with the rate, fee and expected arrival shown before sending. Confirm with your bank how such a payment is treated, for example as a franco valuta import.
- Foreign parents and trading companies. A foreign company that buys from China and sells to an Ethiopian business can pay the Chinese supplier from its own Helm account and invoice the Ethiopian buyer.
- Not for stablecoins. Helm's USDC and USDT features are available only where local law allows, and under the NBE's July 2026 notice they are not available to companies based in Ethiopia.
Your goods still need the import license, the bank permit or franco valuta clearance, and customs clearance in Ethiopia, whichever account pays the supplier. Each account has a named account manager, and review questions are answered in writing within one business day. Trade finance is arranged case by case. Helm agrees pricing with each business in writing before the account opens, and shows the rate, the fee and the expected arrival before you confirm each payment.
A checklist for paying a Chinese supplier from Ethiopia
- Check your import license and TIN certificate are current and in the company's exact name.
- Agree the payment mode with the supplier before the proforma invoice is issued.
- Apply for the import permit and diary the 120-day validity; ask for an extension before it lapses.
- Use a letter of credit for a new supplier, and consider cash against documents on acceptance for repeat orders.
- Ask the bank for its current letter of credit fee, annualized and pro rata to the tenor.
- Send transfers by SWIFT with charges set to OUR, quoting the permit and invoice numbers.
- Check the seller on the invoice, the permit and the payment are the same company.
- Do not pay suppliers in USDT or other virtual assets unless the NBE has authorized the activity.
For how other importers organize supplier payments, see the importers page.
Open a Helm account
USD, EUR and GBP accounts in your company's name, with a named account manager.
Open accountQuestions
How do I pay a Chinese supplier from Ethiopia?
Apply to your Ethiopian bank for an import permit with the proforma invoice, your import license and TIN certificate, then pay the supplier in US dollars through the bank by letter of credit, cash against documents or transfer. The payment goes by SWIFT to the supplier's account in China or Hong Kong.
Do Ethiopian importers still need NBE approval for a letter of credit?
Not for letters of credit on acceptance for foreign currency and retention account holders. Directive FXD/05/2026, in force from 25 May 2026, authorizes banks to approve them without prior NBE approval, and the same applies to cash against documents on acceptance.
How long is an import application valid in Ethiopia?
An import application is valid for 120 calendar days. Since Directive FXD/04/2026 of 12 February 2026, banks may extend it for good cause without a fixed end date, where previously they could add only 30 days.
Can I ship goods from China before my Ethiopian bank approves the import?
Under Directive FXD/05/2026, importers holding foreign currency accounts, including retention accounts, may order or initiate a shipment before bank approval. Payment is processed only after the required documents are submitted and verified.
What is cash against documents?
Cash against documents, or documentary collection, sends the shipping documents through the banks, and the importer receives them only after paying or accepting a bill of exchange. On acceptance, payment falls on a set later date.
What are franco valuta imports in Ethiopia?
Franco valuta imports are imports paid without foreign currency from an Ethiopian bank. The NBE's July 2024 directive permits them, subject to customs, tax and other rules.
How much do Ethiopian banks charge for a letter of credit?
Each bank publishes its own tariff. Since the NBE notice of 25 May 2026, letter of credit fees for foreign currency and retention account holders must be annualized and applied pro rata to the actual tenor, within the maximum the NBE set earlier.
Can I pay a Chinese supplier with USDT from Ethiopia?
No. The NBE's Public Notice on Virtual Assets of 23 July 2026 prohibits the use, transfer and settlement of virtual assets, including stablecoins, unless the NBE expressly authorizes it.
Can my supplier give me credit from China?
Yes, subject to bank approval. Since February 2026, commercial banks review and approve supplier credits instead of the NBE, and the importer gives an undertaking on a 60:40 debt to equity ratio.
Why does my Chinese supplier want payment to a Hong Kong account?
Many Chinese factories sell through a Hong Kong trading company that holds a Hong Kong bank account. Make sure the Hong Kong company is the seller on the proforma invoice in your import permit, so the payment and the import documents match.
References
- National Bank of Ethiopia: Press release on Foreign Exchange Directive FXD/01/2024 (29 July 2024)
- National Bank of Ethiopia: Directive No. FXD/05/2026, amendment to Foreign Exchange Directive No. FXD/01/2024
- National Bank of Ethiopia: Notice on FX directive amendment and rationalization of fees and charges on letters of credit (25 May 2026)
- Mondaq, Mekdes & Associates: Ethiopia's forex liberalization continues, highlights of the new amendment directive (17 February 2026)
- International Trade Administration: Ethiopia import requirements and documentation
- Bunna Bank: Approved international banking terms and tariffs
- PNC Bank: Navigating China's regulations on foreign exchange for goods trade
- LEX Africa, Dablo Law Firm: Ethiopia's virtual asset ban explained (12 August 2026)
This guide is general information for businesses, not financial, legal or tax advice. Rules, fees and timings were checked against the sources listed on the review date and may change.