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Ethiopia’s digital finance sector hopeful as it awaits foreign competition

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Digital Africa

By Hawi Dadhi

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Posted on October 18, 2022 10:17

 © Safaricom Ethiopia employees walk past a billboard during the Safaricom ceremony to officially launch its operations in Ethiopia, in Addis Ababa, Ethiopia, October 6, 2022. REUTERS/Tiksa Negeri
Safaricom Ethiopia employees walk past a billboard during the Safaricom ceremony to officially launch its operations in Ethiopia, in Addis Ababa, Ethiopia, October 6, 2022. REUTERS/Tiksa Negeri

A ceremony to celebrate the launch of Safaricom Ethiopia’s nationwide commercial launch marks the latest radical development in the domestic digital finance sector (DFS), which has been undergoing rapid growth in recent years.

Despite the absence of a governing legal framework, Finance Minister Ahmed Shide announced that the country’s first-ever private telecoms operator, Safaricom, has been given the nod to introduce its M-Pesa mobile money service to the Ethiopian market.

It is a milestone for the fast-evolving and increasingly lucrative domestic DFS scene.

The number of active mobile money accounts has doubled to 43 million over the past year – placing Ethiopia among the largest mobile money networks globally.

The state-owned Ethio telecom’s Telebirr mobile money platform, the industry’s top dog, stands as Safaricom’s biggest competitor.

Stiff competition

Telebirr has racked up over 25 million users within a year and a half of its launch as the nation’s first telecom-led mobile money platform.

Drivers have transacted over Br100m at fuel stations using Telebirr in the first two months since the option was

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