M-pesa Ethiopia - Afrikan Heroes

Mobile Money Service M-PESA Now Live in Ethiopia

August 17, 2023

Marta Hailemariam, head of payment settlement at NBE

A groundbreaking moment has arrived in Ethiopia’s financial landscape as M-PESA, the revolutionary mobile financial service by Safaricom, has officially launched. This achievement comes just three months after securing the esteemed Payment Instrument Issuer License from the National Bank of Ethiopia (NBE) in May 2023.

The journey to this pivotal juncture has been marked by careful planning and a meticulous three-month pilot phase. Through extensive technical preparations and strategic collaborations with key banks, M-PESA has emerged as a transformative force in the Ethiopian financial sector. The process also included a strategic recruitment drive, comprehensive training, and onboarding of a dedicated network of M-PESA agents, laying the groundwork for a seamless customer experience.

Radiating enthusiasm, Stanley Njoroge, the Interim CEO of Safaricom Ethiopia, heralded the dawn of this new era. “We are excited to go live with M-Pesa in Ethiopia and start providing Mobile Financial Services to our customers,” Njoroge exclaimed. He emphasized the far-reaching impact of M-PESA as a catalyst for financial inclusion, ensuring a “safe and secure platform for transactions” for a staggering 51 million customers spanning across seven African nations.

Njoroge’s sentiment was mirrored in his commitment to expanding M-PESA’s offerings, aiming to enhance the quality of life for its users. “We will continue to broaden the services our customers receive from the M-PESA platform that will improve the quality of life for our customers,” he affirmed, highlighting the platform’s evolving role as a transformative companion to daily life.

A testament to Safaricom Ethiopia’s dedication, the expansion efforts of the past ten months have borne fruit. The company has extended its reach to encompass 147 new towns, connecting with over four million customers throughout Ethiopia.

The accessibility of M-PESA to all Safaricom Ethiopia customers is a pivotal aspect of this transformative journey. By dialing *733# on their Safaricom line, both Android and iOS users gain instant access to M-PESA’s array of services. While the Android app, available on the Play Store, supports five languages, the iOS version is set to launch in the coming weeks.

M-PESA’s functionality is as extensive as it is impactful. Beyond its role in peer-to-peer transactions, M-PESA facilitates cross-border remittances, streamlines merchant payments, enables airtime purchases, and offers seamless fund transfers between personal bank accounts and M-PESA, as well as the reverse.

Paul Kavavu, Interim General Manager of Safaricom M-PESA Mobile Financial Services Plc, echoed the triumphs of M-PESA across Africa. He termed it “Africa’s most successful mobile money service,” a cornerstone of financial empowerment for both the banked and the unbanked. The remarkable success in Kenya, where over 90% of adults enjoy mobile banking access, serves as a testament to M-PESA’s transformative potential.

Kavavu expressed optimism about extending this narrative of transformation to Ethiopia, envisaging a future where M-PESA becomes a beacon of empowerment. “We look forward to replicating this success in Ethiopia and are excited to go live with the services. In the coming months, we will continue to add more functions and work with all Ethiopians to jointly realize the transformative power of M-PESA,” Kavavu proclaimed, encapsulating the shared vision of Safaricom Ethiopia and M-PESA as agents of positive change.

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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.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

Safaricom’s M-Pesa Breaks Ground as First Foreign Investor to Receive Mobile Money License in Ethiopia

May 12, 2023

Sitoyo Lopokoiyit, interim CEO of M-Pesa Africa

The National Bank of Ethiopia (NBE) announced that it has granted a mobile money service license to Safaricom M-Pesa Mobile Financial Service Plc, a subsidiary of Safaricom Telecommunication Ethiopia Plc. This is the first time a foreign investor has been granted a mobile money license in Ethiopia, where a dozen local fintechs and 30 commercial banks already provide financial services.

M-Pesa was granted the license six months after the Ethiopian government enacted a revised National Payment System Proclamation, which permits foreign companies to engage in payment system operations. The NBE stated in a press release that granting the license to M-Pesa reflects its commitment to fostering financial innovation and inclusion in the Ethiopian market.

The license will enable Safaricom’s subsidiary to roll out mobile financial services in Ethiopia, which is Africa’s second most populous nation. However, it will face stiff competition from Ethio Telecom’s TeleBirr, which has acquired 30 million users since its launch in May 2021, demonstrating the market’s potential. In recent years, the menu of digital finance offerings, including mobile banking, mobile wallets, internet banking, and card banking, has expanded rapidly.

The Central Bank welcomed the shift towards the use of digital financial services, citing the benefits of increased efficiency, safety, and transparency in the rapidly growing financial system. Looking ahead, the NBE stated that it will continue to take measures to deepen Ethiopia’s digital finance ecosystem and promote the introduction of diverse forms of digital financial services. The bank also expressed its support for the spread of digital payment systems as a substitute for cash-based transactions within the economy.

“The National Bank of Ethiopia wishes Safaricom’s M-PESA service well as it launches its operations in the very near future,” the NBE added.

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Charles Rapulu Udoh