Ethiopia ’s national telecommunications company, Ethio Telecom, has applied to the National Bank of Ethiopia for a license to begin offering loans and savings services via telebirr as part of its strategy to extend its digital financial services.
“We are working to strength the digital economy in order to enable citizens to have an easy system whilst promoting financial inclusion,” said Firehiwot Tamiru, CEO of Ethio telecom, who said Ethio telecom awaits the permit which is due soon.
Here’s What You Need To Know
- Additionally, the telecommunications company recently reached an agreement with Ethiopian Airlines on the online purchase of domestic flight tickets via telebirr, ensuring the availability of a variety of online payment alternatives.
- Ethiopian Airlines’ Chief Commercial Officer, Lemma Yadecha, who signed the deal on the company’s behalf, stated that the airline has difficulty processing transactions above 30,000 birr round trip. He claimed that direct sales for the given sum are now conceivable.
- The payment system integration agreement inked between the two government enterprises and significant income generators for the Ethiopian government would enable Ethiopian Airlines passengers to use telebirr to purchase aircraft tickets online at any time and from any location.
“E-money service is playing a pivotal role in fostering the digital economy that the nation aspires to achieve along with improving our community’s digital payment system experience and in modernizing the existing customary cash transactions of institutions’ payment systems,” said Firehiwot.
One Year After, 17.6 million Customers For Telebirr
With only a few days remaining until the one-year anniversary of its inception in May 2021, telebirr has amassed a customer base of 17.6 million, reports Capital Ethiopia.
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Over the course of the year, over 12.58 billion birr has been transferred or transacted locally; while over half a million USD (528.4 thousand dollars) has been transferred via telebirr from 34 countries in collaboration with eight international telebirr remittance partners in less than five months, the report noted.
The report notes that Telebirr today operates 353 stores and provides service to over 16 thousand merchants through 80 master agents, 64,000 agents, and over 16 thousand merchants. Telebirr is also integrated with 12 commercial banks to provide financial transfer services via the platform.
It also notes that over 52 organizations, including those that collect traffic fines, have integrated their services with telebirr to enable them to do business online, collect monthly bills, and offer a variety of online services to their consumers. Additionally, Ethio Telecom has begun the process of integrating the telebirr payment system with over 20 governmental and non-governmental organizations and will shortly officially launch the service.
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“Enabling various business transaction payments ranging from making payments for small transaction to transferring large amount of money via telebirr, has significantly contributed to the adoption of digital payment system,” the firm’s CEO was quoted as saying recently.
loans and savings services Ethiopia loans and savings services Ethiopia
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
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