Current Status and Future of Agent Banking in EthiopiaThis key report by Shega, developed under the AKOFADA project, explores the growth and challenges of agent banking in Ethiopia. Since its introduction in 2012, agent banking has expanded rapidly, reaching over 500,000 registered agents by mid-2025, driven by platforms like Telebirr and M-PESA and supported by the National Bank of Ethiopia. Despite this progress, most agents are concentrated in urban areas, while rural regions remain underserved. Many agents face low transaction volumes, high costs, and limited provider support, reducing their profitability and impact. The report calls for redistributing agents to rural areas, improving liquidity and training support, enhancing digital infrastructure, and expanding service offerings. Strengthening regulation, interoperability, and financial literacy is also key to making agent banking a sustainable, inclusive, and resilient model for extending financial access across Ethiopia.
Digital Financial Services and Informal Economy in Ethiopia This key report by Shega, developed under the AKOFADA project, examines digital financial services (DFS) adoption in Ethiopia’s informal economy, which employs over 90% of the workforce and contributes a third of GDP. Despite rapid DFS growth, informal workers still rely on cash and savings groups due to barriers like strict KYC rules, high fees, low literacy, poor connectivity, limited device access, low trust, and irregular incomes. The report highlights initiatives such as the National Financial Inclusion Strategy, National Digital Payment Strategy, and the national digital ID (Fayda). It recommends tailored low-cost products, expanded agent networks, literacy training, trust-building, and multi-stakeholder coordination to enhance financial inclusion, support livelihoods, and promote gradual formalization of the informal economy.
Mobile Based Digital Financial Services in EthiopiaThis key report by Shega, developed under the AKOFADA project, explores the rise of Mobile Banking and Mobile Money in Ethiopia. These services have grown rapidly, with banks processing trillions in digital transactions and telecom-led wallets like Telebirr and M-PESA driving mass adoption. Yet, critical gaps remain. Mobile Money, meant to reach the unbanked, is increasingly used by those already banked, while high account dormancy, weak agent networks, and rural and gender disparities limit impact. The report calls for stronger interoperability, simplified KYC, affordable device access, and inclusive literacy programs, highlighting cross-sector collaborations and the opening of Ethiopia’s banking sector as key opportunities to ensure mobile finance translates into meaningful financial inclusion.
How Kifiya's Technology Infrastructure is Empowering Ethiopian MSMEsDiscover how Kifiya Financial Technology is leveraging AI-powered alternative credit scoring to expand access to finance for Ethiopia’s micro, small, and medium enterprises (MSMEs). This case study highlights how Kifiya’s Banking Platform as a Service (BPaaS) and Origination & Verification Platform (OVP) are enabling faster, more inclusive, and data-driven lending for underserved businesses, while supporting national goals for 70% financial inclusion by 2025.
Marketing Guide on Promoting the Use of Digital Financial Services in Rural and Semi-Rural AreasExplore how digital financial services (DFS) in Ethiopia are transforming rural and semi-rural communities by fostering financial inclusion, improving access to secure and convenient mobile money, and driving economic empowerment. This comprehensive marketing guide presents data-driven and human-centered strategies to build trust through community engagement, simplify messaging, and leverage authentic Ethiopian storytelling to rural and semi-rural populations.
Integration of Digital Financial Services with Microfinance Institutions in EthiopiaThe case study report explores how Microfinance Institutions (MFIs) in Ethiopia are integrating Digital Financial Services (DFS) to enhance financial inclusion, particularly in rural areas. It highlights the progress made by some MFIs in adopting digital tools like mobile wallets and core banking systems, while also
addressing challenges such as high technology costs, limited digital literacy, and infrastructure gaps. The report also emphasizes that digitization is essential for MFIs to expand outreach, improve efficiency, and empower underserved communities.
Multi-User Digital Banking for FamiliesEthiopia’s digital financial services are largely designed for single users, leaving women, youth, and the elderly excluded from managing household finances. Introducing a multi-user digital banking model will align DFS with traditional household structures, enable role-based access for family members, enhance transparency, and reduce the risks of informal credential sharing.
Integrating Digital Payment into City Bus and Train Ticketing Systems in EthiopiaEthiopia’s public transport system remains largely cash-based, resulting in inefficiencies, revenue leakages, and commuter inconvenience. Passengers often face long queues, lack of change, and security concerns due to the absence of a digital fare collection system. Introducing a digital payment system for city buses and trains will modernize fare collection, enhance transparency, and improve service delivery. It also creates opportunities for financial service providers and Fintechs to integrate transit payments with mobile money and banking services, supporting both urban mobility and broader financial inclusion.
Digital P2P Lending Platform for EthiopiaEthiopia lacks accessible, formal, and digital P2P lending options, forcing individuals and small and medium-sized enterprises MSMEs to rely on informal, inefficient financing. Introducing a digital P2P lending platform will diversify the loan options for individuals or MSMEs and create an investment opportunity for individuals with disposable money to lend funds in exchange for competitive returns.
