POLICY BRIEF

On the Suitability of Banking Services in Ethiopia for the

This publication was made possible through the support of the American people through the
United States Agency for International Development (USAID). The content and opinions
expressed in this document in no way reflect the views of the USAID.

June, 2021
Contents
Contents ......................................................................................................................................................... I
Acronyms ...................................................................................................................................................... II
1. Introduction ........................................................................................................................................... - 1 -
2. Accessibility Guideline of Banking Service ........................................................................................ - 2 -
3. Existing Policies and Laws Applicable to Banking Services in Ethiopia ............................................. - 3 -
4. Practical challenges to access Banking Services for VIPs .................................................................... - 6 -
5. Recommendations ................................................................................................................................. - 7 -

I
Acronyms
FDRE - Federal Democratic Republic of Ethiopia

HoF - House of the Federation

NBE - national bank of Ethiopia

PWD - Persons with Disability

UNCRPD - United Nations convention on the rights of persons with disabilities

VIPs - visually impaired persons

II
1. Introduction
This policy brief focuses mainly on identifying the major legal and practical gaps concerning the
inclusiveness of banking services in Ethiopia for Persons with Disability (PWD) in general but
with major emphasis on Visually Impaired Persons (VIPs).
PWDs in general VIPs in particular face multitude exclusion and discrimination in major live
activities including access to banking service. In several countries, persons with different
disabilities are not allowed to independently open and operate bank accounts, access loans, or
use electronic and online banking facilities.1 Depriving accessible and inclusive of banking
service for these groups is undermining their human dignity, autonomy and worthiness.
Like any other countries, Ethiopia’s banking service is inaccessible and non-inclusive preventing
PWDs/VIPs not to exercise their fundamental human rights. Although services that are open or
provided to the public are required to be accessible and inclusive, opening of bank account,
Cheque facilities, loan facilities, cash withdrawal, filling out bank forms, mobile and internet
banking, and Automated Teller Machine (ATM) machines are still inaccessible for PWDs in the
country. This could be also attributable to: unavailability of accessibility mainstreaming
guidelines, absence of accessibility monitoring, poorly trained bank staffs and other related
issues.
Therefore, this policy brief is prepared to analyze the existing laws that are applicable on
banking services and assess practical challenges that PWDs in general and VIPs in particular
face in accessing suitable banking service.
To achieve the purpose, the policy brief first discusses accessibility guidelines of the banking
sector. Second, it identifies major policy and legislative frameworks that govern banking service
then, the policy brief addresses barriers/challenges of persons with disabilities within the banking
services. Finally, the policy brief forwards possible recommendations for further policy, legal
and implementation measures.

1
Inclusive Financial Services for Seniors and Persons with Disabilities: Global Trends in Accessibility
Requirements, A G3ict Best Practices White Paper Series Researched in Cooperation with the Center for Internet
and Society February 2015.

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2. Accessibility Guideline of Banking Service
Accessibility is one of the principles expressly provided under article 3 (F) of the United Nations
Convention on the rights of Persons with Disability (UNCRPD). It is also incorporated as
obligation of states under Article 9 of the same convention. The committee which interprets the
UNCRPD has emphasized that “Accessibility is a precondition for persons with disabilities to
live independently and participate fully and equally in society”.2 Moreover, in magnifying the
role of accessibility, a toolkit for Africa reads as “Accessibility is at the heart of the UNCRPD,
which enshrines the rights of persons with disabilities to have full access and fully enjoy and
participate in social, economic, cultural, civil and political life, on an equal basis with others.”3
Institutional, physical, informational, communication, attitudinal, and cultural barriers are some
of the identified major barriers to accessibility. Therefore, given the vitality of accessibility for
PWDs/VIPs to utilize other right, governments are obligated to supervising and ensure that
public facilities are capable of removing accessibility barriers.
Article 9 of the UNCRPD, which substantiates the contents of accessibility, imposes a duty upon
government to ensure that even private entities providing public facilities and services comply
with the accessibility features outlined under Article 9. These private entities include
“restaurants, shops, banks, supermarkets, private universities, professional associations, sports
stadiums and other private entities offering facilities and services to the public.”4
The UNCRPD committee, in an individual communication submitted to it has also recommended
that, States are duty bound to establish minimum standards for the accessibility of banking
services coupled with concrete, enforceable and time-bound legislative framework and called for
the new procured ATMs and other banking services to be accessible for persons with
disabilities.5 As the world report on disability shows, ‘voluntary efforts on accessibility are not
sufficient to remove barriers. Instead, mandatory minimum standards are necessary”.6 Therefore,
governments should continually strive to set mandatory accessibility standards and procedures
and follow up their implementation.

2
United Nations UNCRPD/C/GC/2/2014 Para. 1.
3
Division for Social Policy and Development (DSPD), Toolkit on Disability for Africa, November 2016. Available
at https://www.un.org/esa/socdev/documents/disability/Toolkit/Accessibility.pdf last visited 20/06/2021.
4
ID.
5
UNCRPD Committee, Szilvia Nyusti & Péter Takács v Hungary, UNCRPD/C/9/D/1/2010, Communication no
1/2010, (2013).
6
World Health Organization and World Bank Group, World Report on Disability 2011, P173.

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3. Existing Policies and Laws Applicable to Banking Services in Ethiopia
I. The UNCRPD – it is among the major specific instruments which recognize the rights of
PWDs. The UNCRPD was ratified by Ethiopia in 2010 pursuant to Proclamation No. 676/2010.
Thus, the UNCRPD is part of the law of the land and should also be mainly used to interpret the
laws in relation to the rights of PWDs in Ethiopia.7 Therefore, the UNCRPD is binding, although
it needs other domestic actions including legislations for its implementation on the ground. States
should take legislative, administrative, policy and other measures to implement the rights
recognized in the UNCRPD as stated under Article 4 of the Convention.
Article 12 (5) of the convention has direct implication on banking services. It provides that States
shall take all appropriate and effective measures to ensure the equal right of PWDs to own or
inherit property, to control their own financial affairs, to have equal access to bank loans,
mortgages and other forms of financial credit, and shall ensure that PWDs are not arbitrarily
deprived of their property. Article 12 of the UNCRPD is mainly dedicated towards legal capacity
and recognition before the law. Article 5 of the UNCRPD provides about equality and non-
discrimination, which is also indispensable for the inclusiveness of banking services. Article 9 of
the UNCRPD provides that States should take effective measures to make services open to the
public, including by the private actors to ensure they are accessible for PWDs. The provision
includes physical, information and communication accessibility for PWDs. The UNCRPD
imposes direct obligation on States rather than private actors. However, the convention provided
that States should set laws, standards and guidelines binding on private actors too.
II. The FDRE Constitution – Article 25 of the FDRE Constitution states: “All persons are equal
before the law and are entitled without any discrimination to the equal protection of the law.”
This is a very important provision for PWDs, despite its failure to cite disability expressly.
However, disability is recognized by the FDRE House of Federation as one ground of prohibited
ground of discrimination.8 Its importance emanates from the existence of domestic laws which
make PWDs incapable of performing juridical act such as the Civil Code of Ethiopia which
labels persons with mental disabilities as incapable of performing any juridical act if they are
judicially interdicted. The code is not in line with Article 12 (4) of the UNCRPD which requires
States to ensure that they design safeguard measures including those relating to the exercise of

7
See Arts. 9(4) and 13(2) of the Constitution of the Federal Democratic Republic of Ethiopia, 1995
8
See for instance Wosen Alemu and Dawit Oticho vs Amhara National Regional State (ANRS) justice professionals
training and legal research institute and the ANRS judicial council, HoF/F/No. 019/08.

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legal capacity respect the rights, will and preferences of the person, free of conflict of interest
and undue influence.
III. The civil code of Ethiopia – Article 1728 (3) read in conjunction with article 1727 of the
Civil Code of Ethiopia provides that those contracts, which are legally required to be in writing,
should be authenticated by a notary, judge, or registrar in the discharge of his duties. Article
1728 (3) of the Civil Code is interpreted by many, in particular institutions that provide banking
services, to require blind persons to come with their witness. These provisions are limiting the
freedom of VIPs and persons with mental disabilities from exercising their rights independently.
IV. The Commercial Code of Ethiopia – Article 734 of the old Commercial code (part of which
is not repealed by Proclamation No. 1243/new commercial code) provides that (1) Declarations
made by commercial instruments shall bear the signature of the person making them. (2)
Nevertheless, signature may be apposed by a handwritten mark or by mechanical process such as
a stamp. (3) When a physical person is unable to sign, his consent shall be evidenced by an
authentic declaration on the instrument.”9
Although the commercial code seems to have a leeway to allow VIPs to draw cheque by virtue
of sub-article 2, banks do however fail to appreciate the distinction between sub-article 2 and
sub-article 3; hence, erroneously impose the requirement of authenticated consent declaration
under sub-art. 3 on VIPs and due to its impracticability currently banks prefer to totally deny
them the right to access banking services through opening and operating checking account.10
V. Banking business (amendment) Proclamation 1159/2019 – one article is reserved for the
rights of PWDs under the newly issued banking business Proclamation No. 1159/2019.11 Article
56 (1) of the Proclamation provides that the services provided by banks should be accessible for
PWDs. Article 56 (2) of the Proclamation provides that the national Bank of Ethiopia (NBE), as
the case may be, may issue directives on the conditions in which the services provided by banks
can become accessible for PWDs. However, NBE has not yet issued any directive in this regard.
Three (3) limitations could be identified in connection to the article of the proclamation: 1. the
first sub-article does not put in clear terms that all of the banking services should be fully

9
The Commercial Code of Ethiopia 1960 Art. 734 1-3.
10
Yohannes Takele, Inclusive Banking Service for the Visually Impaired in Ethiopia, A Thesis submitted to Addis
Ababa University, School of Law for Partial fulfillment of the Requirements for the Degree of Master of Laws
(LL.M) in Business Law, Addis Ababa University, (2018).
11
Amendment Proclamation to Banking Business, Proclamation No. 1159/2019

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enjoyed by PWDs. For instance, it does not prohibit discrimination nor does it recognize that all
of the services should be equally provided to PWDs.
Second, the proclamation does not clearly indicate as to who should define, evaluate, and
determine levels of suitability of banking services. To its detriment, sub-article 2 does not clearly
impose duty on the NBE.
Third, the proclamation employs the term suitability which is not familiarized in the disability
jurisprudence. Accessibility should have been used in the proclamation. As provided in the
Ethiopian financial inclusion strategy,12 Suitability is more concerned about affordability, safety
and quality while accessibility is about “the complete and seamless interaction with an
environment, good or service, on an equal basis with others”.13
VI. Financial consumer protection directive No. FCP/01/2020 – The NBE issued directive
(Directive No. FCP/01/2020) to regulate matters related to the protection of financial consumers.
This directive can be considered as a positive initiative taken by the NBE towards financial
inclusion and equitable treatment of PWDs and security of consumers’ information.
VII. The national bank of Ethiopia establishment (as amended) Proclamation No. 591/2008 –
The NBE serves as the central bank of Ethiopia pursuant to the proclamation amending the
establishment of NBE, Proclamation No. 591/2008. Ensuring respect of the rights of PWDs
cannot be clearly found in the purpose, powers and functions of NBE, according to this
proclamation, although Article 5 (19) of Proclamation No. 591/2008 provides that NBE shall
exercise other powers and functions that Central Banks customarily perform.
VIII. the Financial Inclusion Strategy and the National Plan of Action – financial inclusion of
strategy does not have any explicit statement about accessibility and inclusiveness of banking
service to PWDs/VIPs. The National Plan of Action on the other hand provides living
environment or accessibility as the seventh priority of the policy. But no clear direction is
mentioned regarding accessibility of banking service. However, under the fifth priority, which is
about employment, it is stated that discrimination in the provision of banking service will be

12
National Bank of Ethiopia, Financial Inclusion Strategy, April 2017.
13
United Nations Economic and Social Commission for Asia and the Pacific Social Development Policy Papers,
Disability-Inclusive Public Procurement: Promoting Universal Design and Accessibility, 2019

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made illegal.14 However, the implementation of the policy is going to cease soon without
realizing this vision.
4. Practical challenges to access Banking Services for VIPs
Assessment report on the Suitability of Banking Services in Ethiopia for Persons with Visual
Impairment conducted by ENAB upon which this policy brief is based summarizes the following
practical challenges of VIPs in accessing banking services.
1. Availability of disaggregated data on disability: Banks do not have disaggregated data
regarding PWDS/VIPs. Disaggregated data is very important for:
 Enabling banks to take measures which can enhance the services provided for persons
with disabilities.
 Enabling banks to take immediate corrective measures when persons with disabilities
face problems.
2. Opening of Bank Accounts: Factors related to distance, costs, aspects of convenience and
suitability of banking services with the needs of the VIPs on the banking services to open or not
to open bank account. However, no major problem is observed regarding opening bank accounts
by VIPs.
3. Cash Withdrawals: VIPs are required to bring someone as witness when they need to
withdraw cash. This requirement is against the privacy of the customers.
4. Cheque Book Facility: PWDs/VIPs face challenges when they need issuing cheque. Banks are
not permitting VIPs to issue cheque for third parties. Because, thumb signatures cannot easily be
identified with a specific customer and are difficult to verify upon presentation of cheques to the
banks for payment. Moreover, VIPs will more likely sign the cheque without knowing the
amount put on the it.
5. Loan Facilities: banking service providers claim that VIPs have the right to access loan
facilities but customers with VIP claim that banks are not interested to loan facilities for VIPs.
6. ATM, Mobile Banking, Internet Banking, POS Banking Services: ATMs are not accessible for
the VIPs as information feedback is largely visual through the ATM display and/or touch screen
displays. While these provide more functions to sighted users, they are inaccessible to the
visually impaired.

14
Federal Republic of Ethiopia, Ministry of Labor and Social Affair, National Plan of Action on Persons with
Disabilities (2012-2021).

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7. Forms, Document, and Information & Communication: in relation to completing forms or
signing legal documents, the best practices are to have an alternative format available that meets
their needs. However, these alternative formats are not provided to the VIPs by banks in
Ethiopia. The VIPs receive bank information and statements either in ordinary print forms or
online, neither of which are convenient to them. As part of enhancing the suitability of banking
services, banks should provide information and bank statements to VIPs in alternative forms
such as in Braille, large print, audio or accessible Portable Document Format (PDF)
8. Staff Support to the VIPs: Staff support to the VIPs is necessary when they appear to get
service. However, no specific trainings tailored to the needs of VIPs was delivered. None of the
banks recruited staff with skills in special needs such as Braille. This puts the VIPs at the risk of
not being served suitably by the banks.
5. Recommendations
 The directive which was expected from NBE pursuant to Article 56 (2) of Proclamation
No. 1159/2019 should be issued and be made operational at all banks. The model
directive developed by ENAB can be used.
 Coordinated effort of NBE and commercial banks needs to be made to enhance the
inclusiveness of banking services to VIPs. Moreover, they should cooperate with other
relevant government organs to find out the disaggregated data of PWDs.
 Banks should learn from other countries’ experiences which provided suitable banking
services to PWDs in general and VIPs in particular.
 Banks should create awareness to their staff that VIPs are their customers who deserve
equal banking services like other persons. New incumbents and existing staff of banks
should receive adequate training related to serving PWDs including VIPs.
 Banks should develop procedural guidelines for banking facilities to VIPs in line with the
UNCRPD and accepted international standards.
 Banks should have alternative formats such as Braille, audio and large print, and others to
allow VIPs to maintain their independence.
 Banks should introduce accessible banking service technologies including electronic
banking and electronic signatures and put in place standard requirements when they
begin to adopt and use the banking technologies. Banks should also consider
accessibility requirement in their procurement policy.

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 The NBE shall prepare accessibility mainstreaming guideline/standard and conduct
accessibility audit to realize accessibility of all the private and public banks for persons
with disabilities.
 The NBE shall develop and enforce national financial inclusion strategy specifically for
the inclusion of persons with disabilities, or, alternatively, revise the existing financial
inclusion strategy to incorporate the needs of persons with disabilities.

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