FORTUNE+ VIDEO SPONSORED CONTENTS ADVERTORIALS FORTUNE AUDIO Fortune Careers TRADE AFRICA Election 2026 New TIME REMAINING UNTIL ETHIOPIA’S NATIONAL ELECTION 0Days 0Hours 0Minutes 0Seconds

Fortune Logo

Safaricom M-Pesa Secures Historic License, Challenging Ethio Telecom's Monopoly

May 11 , 2023

Safaricom M-Pesa Financial Service Plc, a subsidiary of Safaricom Telecommunications Ethiopia (Safaricom Ethiopia), has been granted a mobile money service license by regulators at the Ethiopian central bank.

This marks a significant milestone, as it is the country's first license issued to a foreign private company.

The historic entry of Safaricom Ethiopia disrupts the century-long monopoly held by state-owned Ethio-telecom in the telecommunications market. The central bank's decision to allow Safaricom M-Pesa aligns with its objectives to promote financial inclusion and innovation within the country, according to a statement issued by the National Bank of Ethiopia (NBE).

The NBE statement welcomed the transition to digital financial services, highlighting the benefits of efficiency, security, and transparency in the rapidly evolving financial sector. The central bank also expressed openness to introducing various forms of digital financial services in the future.

Ethio-telecom, a state-owned enterprise, has long dominated the mobile payment market with its Telebirr service, which has been heavily promoted. The expansion of Telebirr was accelerated by federal transport authorities requiring vehicles to be refuelled exclusively through Telebirr and an app launched by the Commercial Bank of Ethiopia (CBE), another state-owned bank.

M-Pesa's entrance into the Ethiopian market is poised to present a significant challenge to Ethio-telecom's dominance. The mobile payment service, originally launched in Kenya, has gained global recognition for its pioneering role in the industry.

Editor's Note: This story has been updated from its original version on the basis of clarification.

Safaricom is the first foreign private company to be granted a mobile money service license.

Put your comments here

N.B: A submit button will appear once you fill out all the required fields.



Related Posts

Share This Post
Linkedin
Google+


Most read

Latest News

Editor's pick

Commentaries

The Geopolitical Battle Over Monetary Infrastructure

The development of payment infrastructure in emerging-market economies (EMEs), from i...

Making Roads Pathways of Progress, Not Corridors of Grief

For decades, Ethiopia's roads have been described through the language of fate. The d...

Fineline

Leaders of the National . . .

Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...

When the country’s most. . .

When the country's most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or two...

Editorial

Every Encounter with the State Should Not Become an Invoice

May 9 , 2026

The Ethiopian state appears to have discovered a fiscal instrument that is politicall...

National Dialogue Has Everything But the Trust It Needs

May 2 , 2026

By the time Ethiopia's National Dialogue Commission (ENDC) reached the end of its fir...

Addis Abeba's Roads Reveal a Country Where the Powerful Drive Through the Law

Apr 25 , 2026

In a political community, official speeches show what governments want their citizens...

Ethiopia's New Diplomacy Essence Could Be About Shielding Sovereignty

For much of the past three decades, Ethiopia occupied a familiar place in the Western...

Gallery

Parliament Approves New Cabinet Members

Oct 6 , 2021

Parliament Approves New Cabinet, Incorporates Opposition Leaders Lawmakers have approved today the nominations of 22 ministers, including three opposition leaders. Two MPs have voted against, while 12 abstained...

2020 in Posterity

Jan 5 , 2021

TIGRAY VOTES DESPITE "NULL & VOID" THREAT

Sep 9 , 2020

IN-PICTURE: LAUREATE'S RECEPTION  

Dec 14 , 2019

PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize

May 6 , 2019

Faces, Voices of Addis Abeba

Apr 26 , 2019

Sunday With Eden

The Silence That Leadership Can't Keep

A few days ago, I attended a virtual conference in Canada that stayed with me, not be...

Development That Redraws the Rent Line

Urban renewal is often sold as a promise: cleaner streets, safer neighbourhoods, bett...

Life Matters

Motivation Drops as the Day Begins in Sleepwear

We have all seen the aesthetic. The “work from home” dream usually comes packaged...

The Final Exam No One Prepared For

The first time I heard about the “Mesob” one-stop service initiative, relief came quickly. It sounded like a promise to citizens worn do...