ADDIS ABABA– Ethiopia’s National Digital Payments Strategy (2021–2024) is accelerating the nation’s digital transformation, experts say, reshaping its financial landscape.
Kacha Digital Financial Services CEO Abraham Tilahun told The Ethiopian Herald that the strategy is driving a profound shift in digital payments. “The government’s focus on infrastructure, regulation, adoption, and innovation has addressed critical gaps in the financial sector, yielding significant progress,” he noted.
Since its launch, the digital payment system has undergone a remarkable transformation, becoming traceable nationwide. It has resulted in the creation of 110 million digital wallet users and 41 million mobile banking users in Ethiopia.
“The system’s traceability has been enhanced, with modern solutions empowering financial institutions to better serve the public,” Abraham explained. “Our collaboration with various banks across Ethiopia, offering a range of products, and creating modern digital payment solutions is fostering trust and improving service delivery.”
The National Bank of Ethiopia’s (NBE)Payment and Settlement System Director Solomon Damtew stated that the financial system is expanding at an unprecedented rate, transforming the way payments are processed in banks and financial institutions.
The National Digital Financial Strategy is part of the NBE’s efforts to modernize the payment system. This strategy plays a crucial role in advancing the digital finance system, making it more reliable, effective, and competitive, which in turn promotes sustainable development for all financial institutions in Ethiopia, Solomon added.
“Since 2018, the NBE has implemented significant reforms in the digital finance system, leading to positive changes. These steps are crucial for the digital finance system, enabling people to send and receive money more easily.” In this context, Ethiopia has become the fourth country in Africa to implement such a strategy, with the NBE overseeing and regulating all digital payment developments.
Currently, banks are processing transactions worth 26 billion Birr per day, a clear indication of the system’s growth and efficiency.
Solomon further stated that Ethiopia’s digital finance payment system is connecting and uniting banks and small financial institutions, enabling them to collaborate effectively.
This integration supports the achievement of the country’s financial inclusion strategy by 2025, ensuring that digital finance services are accessible to all.
The financial inclusion strategy, which has been in place since 2021, is crucial for fostering the development of Ethiopia’s digital economy, it was stated.
BY MISGANAW ASNAKE
THE ETHIOPIAN HERALD SUNDAY EDITION 29 DECEMBER 2024
