Economy

New Directive Limits Online Crowdfunding to 50 Million Birr

AI SUMMARY

The Ethiopian Capital Market Authority has drafted a new directive limiting online crowdfunding campaigns to 50 million Birr per year.

The Ethiopian Capital Market Authority drafted a crowdfunding directive limiting annual online fundraising to 50 million Birr.
Fundraising caps are set at 10 million Birr for Category 1, 25 million Birr for Category 2, and 50 million Birr for Category 3 solicitors.
Violating the fundraising limits incurs administrative penalties including fines ranging from 10% to 20% of excess collections and portal fines between 200,000 and 2 million Birr.
Eligible organizations must be share companies registered under the Ethiopian Commercial Code and meet specific financial criteria.
Financial institutions, government entities, foreign bodies, and individuals convicted of financial crimes are barred from raising funds via crowdfunding.
Total fees charged to participants in a crowdfunding sale must not exceed 2% of the total funds raised.
Unauthorized crowdfunding activities face severe penalties including fines of 1 million to 5 million Birr and blacklisting of offenders.
The authority invited public feedback on the draft directive via email until October 14, 2026, and scheduled an in-person consultation for October 15, 2026.