Electronic signature legality in Ethiopia

Electronic signatures: Why they matter

In the wake of digital transformation, sending electronic documents online has become a common practice. Often, these documents require signatures to solidify agreements. This is achieved with the help of electronic signatures. They provide an efficient way to sign documents online, reducing paperwork and enabling more streamlined transactions.

In addition to easing the process, e-signatures also help protect your documents with their enhanced security and authentication techniques. They outweigh handwritten signatures in various aspects, with security being the most significant. As a result, e-signatures are gaining popularity with businesses worldwide.

E-signatures and Ethiopia's digital leap

In Ethiopia, e-signatures play a key role in helping businesses work smarter and faster, especially as the country moves toward a more digital future. By reducing paperwork and speeding up approvals, e-signatures are simplifying how businesses close deals while ensuring enhanced security. This has particularly benefited small and medium-sized enterprises (SMEs), which often face challenges with paperwork. The shift aligns with Ethiopia's broader commitment to digital transformation, reflected in initiatives like the Digital Ethiopia 2025 strategy, which aims to create a strong digital economy.

With the adoption of Zoho Sign, Ethiopian businesses are well-positioned to achieve new levels of efficiency and growth. Zoho Sign provides a comprehensive digital signature solution that offers key features designed to meet the evolving needs of businesses, such as:

Speedier signing processes
Improved productivity
Signer authentication
Security
Remote access
Improved user experience
Cost-effectiveness

Industry applications of e-signatures

E-signatures play a transformative role across several Ethiopian industries, including:

E-signatures in Ethiopia: Legal framework and regulations

As organisations shift towards digital processes, understanding the legality of e-signatures is of paramount importance. By ensuring compliance and security, businesses can confidently navigate the digital landscape and focus on what truly matters: serving their customers better.

The legislation governing the use of e-signatures in Ethiopia:

1. Proclamation No. 1072/2018: A Proclamation to provide for Electronic Signature (2018 Proclamation)

The law defines the types of e-signatures and establishes the legal basis for the recognition of electronic records, contracts, digital signatures, certificate providers, and timestamp service.

2. Proclamation No. 1205/2020: Proclamation to provide for Electronic Transactions (2020 Proclamation)

Enacted in 2020, this Proclamation on Electronic Transactions establishes the criteria for the reliability of an e-signature and defines applicable use cases and exemptions.

As outlined in Section 9(4) of Proclamation No. 1205/2020, Proclamation No. 1072/2018 will govern any signatures related to electronic transactions that fall outside the scope of Proclamation No. 1205/2020.

Types of Electronic Signatures recognised

Electronic Signatures

An "Electronic Signature" means information in electronic form, affixed to or logically associated with, an electronic message, which may be used to identify the signatory in relation to the electronic message and to indicate the signatory’s approval of the information contained in the electronic message.

Legal recognition of Electronic Signatures

When the law mandates a person's signature or stipulates consequences for the absence of a signature, a reliable Electronic Signature can fulfil this requirement if the following conditions are met:

The reliable Electronic Signature is suitable for its intended purpose, taking into account factors such as the nature, extent, type of transaction, and the essence of the electronic data.
There is an agreement between the parties regarding the use of Electronic Signatures.
The Electronic Signature provides a means to identify the contracting parties.

Legal presumptions associated with the use of a reliable Electronic Signature

In terms of civil proceedings, the following presumptions apply when electronic data is signed using a reliable Electronic Signature:

The Electronic Signature is the signature of the subscriber.
The subscriber intended to approve the electronic data when affixing the Electronic Signature.
The electronic data and the Electronic Signature have remained unaltered since the signature was applied.

Digital Signatures

A "Digital Signature" means an Electronic Signature that uses an asymmetric cryptosystem and meets the following requirements:

It is uniquely linked to the signatory.
It is capable of identifying the signatory.
It is created with the help of a private key that is solely controlled by the signatory.
It is capable of detecting any changes made to the signature or contents of the electronic data.

Section 8 of the Proclamation No. 1072/2018 recognises a Digital Signature based on a valid certificate as a reliable Electronic Signature.

Certificate Provider

A certificate refers to electronic data that associates a public key with the individual named in the certificate, thereby verifying that person's true identity.

A Certificate Provider is an entity authorised or recognised by the root certificate authority to issue certificates and provide related services as specified in Article 22 of Proclamation No.1072/2018. Certificates issued by a Certificate Provider are deemed valid. In Ethiopia, the root certificate authority is the Information Network Security Agency.

Time Stamp service

A time stamp is defined as a "digitally signed notation that is appended to the electronic data, Digital Signature, or certificate indicating the correct date and time of a particular action." This Time Stamp service is offered by a Certificate Provider or other entities authorised by the root certification authority. It acts as a declaration that verifies the accurate date and time of a process related to electronic data, Digital Signatures, and the authenticity of certificates. The date and time generated by an authorised time stamping service provider serves as reliable and adequate evidence.

Document timestamping offered by Zoho Sign

Zoho Sign partners with recognised timestamping authorities, GlobalSign and Seiko, to provide trusted digital timestamps for electronic transactions. These timestamps validate the authenticity of e-signatures and verify that the signed document existed in the given form at the time of signing and remains unaltered, adding a robust layer of security to the signing process. By making signatures tamper-proof, digital timestamps enhance the reliability of signed documents for both legal and commercial purposes.

Legal recognition of E-Signatures under Proclamation No. 1205/2020

Under the 2020 Proclamation, only one type of e-signature is recognised, namely the "Electronic Signature", which retains the same definition as outlined in the 2018 Proclamation. Section 9 of the 2020 Proclamation specifies that where the law requires a person's signature without designating a specific type, this requirement concerning electronic data can be fulfilled by:

A method that identifies the signer and indicates their approval of the information contained in the electronic data.
A method that is reliable and suitable for its intended purpose, considering all relevant circumstances, including a relevant agreement.

Additionally, the same section states that an Electronic Signature is deemed reliable if the method used to create it meets the following criteria:

It is uniquely linked to the signatory and not to any other individual.
At the time of signing, it is solely under the control of the signatory and not accessible to others, and the signature was affixed without duress or undue influence.
It has the capability to identify any changes made to the electronic signature.

Moreover, the 2020 Proclamation allows for the authentication of an electronic signature through any other lawful means, in addition to the aforementioned requirements.

Scope of application of E-Signatures

Section 3(1) of Proclamation No. 1205/2020 outlines its applicability to the following entities:

Institutions of the Federal and Regional Governments, as well as the City Administration of Addis Ababa and Dire Dawa, that have the authority and functions to provide public services
Operators of electronic commerce
Providers of electronic government services
Electronic messages
Administration of .et domain names and related subjects

Exclusions from Proclamation No. 1205/2020

Section 3(2) explicitly states that the Proclamation does not cover the following transactions:

Matters related to personal status, including marriage and divorce
Transactions concerning the creation, execution, or revocation of wills and testamentary instruments
Court procedures, such as judicial summons, search warrants, arrest orders, and judicial decrees
Transactions related to the transfer of interests in real estate
The establishment, execution, or enforcement of powers of attorney

Why choose Zoho Sign for your
e-signature needs?

Zoho Sign enables Ethiopian businesses to boost efficiency and maintain a competitive edge in the digital landscape. Here's how Zoho Sign can help transform your operations:

Identification and reliability:
Zoho Sign offers various authentication methods, such as email authentication, SMS authentication, and dynamic knowledge-based authentication, to ensure the e-signature identifies the signatory.
Intention of the signatory:
This can be collectively projected by the contents of the electronic documents (like terms in an agreement), audit trail, and completion certificate.
Control over the data being signed:
Only the signatory is allowed to review the document before signing and provide choices to make changes or reject the document if necessary.
Enhanced security:
Zoho Sign employs robust encryption protocols, such as the military grade AES-256 encryption at rest and the TLS/SSL protocol in transit, to ensure that the data transmission between the signing platform and the data being signed is secure. This prevents documents and data exposure in the case of data breaches.
Detectable alterations:
Zoho Sign ensures any alterations to the electronic signature or the document are detectable through an elaborate audit trail of all signing-related activities. This comprises critical information like the identity of the signatory, the timestamp of the signature, and changes made to the document.

Key takeaway

As e-signatures gain traction in Ethiopia, businesses are transforming the way they handle agreements and contracts. E-signatures not only streamline processes but also ensure compliance with Ethiopia's legal framework, offering full legal validity for electronically signed documents. Zoho Sign is at the forefront of this transformation, offering an intuitive platform equipped with advanced security features and comprehensive audit trails. With Zoho Sign, you can eliminate the hassles of paperwork and embrace a future of fast, seamless digital agreements!

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Disclaimer

The information provided in this document is for general informational purposes only and shall not be construed as legal, regulatory, or any other form of professional advice. Zoho Sign disclaims any liability for any error in the information provided herein. We recommend that you consult your legal counsel for any questions that you may have in this regard.

Zoho Sign: Helping businesses e-sign in Ethiopia