Ethiopians residing overseas have been provided with a new, streamlined method for sending remittances back home, thanks to a recent agreement between M-Pesa and the international money transfer company Dahabshiil, signed in Addis Ababa.
This collaboration offers the Ethiopian diaspora a more convenient and immediate way to transfer funds directly to M-Pesa digital wallets in Ethiopia. Dahabshiil, a company with nearly half a century of experience in facilitating cross-border money transfers, has established a significant global footprint, operating in over 100 countries.
By integrating with M-Pesa’s robust financial platform, Dahabshiil aims to further cement its role as a leading remittance provider in Ethiopia. Musse Mohamed, Dahabshiil’s country representative for Ethiopia, expressed enthusiasm about the partnership with Safaricom’s M-Pesa Ethiopia, highlighting the added convenience for diaspora customers to support their families back home.
M-Pesa has witnessed substantial growth in Ethiopia, amassing over 3 million subscribers since its launch. Strategic partnerships with remittance powerhouses like Dahabshiil are expected to enhance financial inclusivity within the country.
M-Pesa’s acting Chief Digital Finance Officer, Anthony Kang’ethe, expressed great enthusiasm about the new partnership with Dahabshiil, a prominent entity in the realm of international money transfers. He emphasized the shared commitment between the two organizations to foster financial inclusion and stimulate economic growth.
According to the World Bank, remittances to Africa exceeded US$ 50 billion last year, and projections indicate a 4.2% increase for the current year. Ethiopia, with its substantial diaspora community, sees annual remittance inflows of around US$ 5 billion. Both M-Pesa and Dahabshiil are keen to tap into this lucrative market, aiming to establish a competitive edge over other major players in the industry.
Since 2022, Ethiopia has been on a path to economic liberalization, with the telecommunications sector being at the forefront of this transformative agenda. Additionally, the country’s sizable unbanked population presents a golden opportunity for digital wallet services and fintech companies to expand their market share.
