DFS Ethiopia Hub

Research Reports

A curated collection of research reports, articles, and more – your source for valuable project insights.

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08 October 2025Team Shega

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 Finance

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08 October 2025Team Shega

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.

Digital Finance

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01 October 2025Team Shega

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.

Digital Finance

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30 July 2025Team Shega

Card Banking in Ethiopia - Adoption, Challenges & OpportunitiesThis key report by Shega, developed under the AKOFADA project, explores the development of card banking channels in Ethiopia, with a focus on ATMs, POS systems, and various forms of payment cards. Despite this progress, access and usage remain uneven, especially in rural regions where infrastructure, digital literacy, and connectivity pose significant challenges. The report notes that while technological innovations, like biometric-enabled ATMs and prepaid card options, have emerged, the majority of users still engage with cards mainly for withdrawing cash. Broader use of digital payments remains limited. To address these gaps, the report emphasizes the need for targeted efforts to strengthen rural access, expand the functionality of payment tools, enhance user education, and support interoperable solutions through key players like banks, fintechs, and EthSwitch. These efforts are critical to achieving widespread, inclusive financial access across Ethiopia.

Digital Finance

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31 January 2025Team Shega

The path to mobile money - Users' journey in EthiopiaThe adoption of mobile money in Ethiopia has grown significantly in recent years. Users progress through multiple stages, from initial awareness to becoming regular users and advocates. However, experiences vary based on age, gender, location, and education level, influencing their touchpoints, challenges, and perceptions. Tailoring services to these diverse experiences is essential for improving accessibility and advancing financial inclusion.

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