Ethiopia stands on the brink of a digital revolution. Over the last five years, the country has undergone a remarkable transformation, driven by an expanding digital financial market that is reshaping the lives of millions. Thanks to the National Digital Payments Strategy 2025 (NDPS), launched in 2020, the adoption of digital payments and financial services has accelerated at an unprecedented rate. Ethiopia’s financial ecosystem is now evolving, and with it, the promise of a more inclusive, prosperous future.
The significance of this transformation cannot be overstated. Digital payments bring more than just a convenience—they represent the key to unlocking Ethiopia’s economic potential. In a country where a large percentage of the population remains unbanked, digital financial services are offering new pathways to economic empowerment. Small businesses now have the tools to expand, individuals can access formal financial services, and a new generation of entrepreneurs is stepping into the modern economy with confidence. For Ethiopia, this digital shift is not just an upgrade; it is a lifeline for growth and inclusion.
Over the years, Ethiopia’s financial inclusion rate has steadily climbed, reaching 46% in 2022 according to the World Bank’s Findex report, with over 150 million transaction accounts, including 60 million mobile money accounts. This progress marks a significant milestone, but it is also a reminder of the work that remains. Ethiopia still lags behind the global average of 76% financial inclusion. However, the National Bank of Ethiopia has set ambitious goals to close this gap, aiming for 70% adult account ownership by 2025. It’s an ambitious target, but with the right policies, partnerships, and innovations, it is within reach.
The digital financial market in Ethiopia is brimming with potential, yet it faces notable challenges. Infrastructure limitations, digital literacy gaps, regulatory hurdles, and a persistent financial inclusion gender gap are some of the barriers that need addressing. In fact, the sheer size of Ethiopia’s unbanked population presents a tremendous opportunity. With over 120 million people, many of whom lack access to traditional banking services, Ethiopia’s untapped market for digital financial solutions is vast. The rise of fintech innovations, mobile money platforms, and partnerships with telecom operators like Ethio Telecom promises to bridge these gaps, bringing digital services to the masses.
The government’s proactive role in this transformation has been crucial. Platforms like Telebirr and CBE Birr, alongside the introduction of the Electronic Transactions Proclamation, are laying the groundwork for a more secure and transparent digital economy. These initiatives are a clear signal of Ethiopia’s commitment to fostering a vibrant digital payments ecosystem. However, the success of these initiatives will hinge on stronger public-private partnerships that can support the growth of digital infrastructure and ensure these services reach even the most remote corners of the country.
At Visa, we are proud to be a part of Ethiopia’s digital journey. Our recent strategic partnerships with key players like Commercial Bank of Ethiopia, Ethio Telecom, Cooperative Bank of Oromia, Bunna Bank, and Wegagen Bank demonstrate our commitment to expanding digital payments in the country. Through initiatives like the Visa Everywhere Initiative, we are fostering innovation, providing fintech startups with the tools they need to thrive, and enabling the creation of new digital payment solutions. We aim to ensure that our platforms are not just convenient but also secure and reliable, empowering businesses and individuals alike. By expanding access to digital payments, we are helping to unlock the vast potential of Ethiopia’s financial ecosystem.
As we look to the future, the potential for Ethiopia to emerge as a leader in the regional digital economy is clear. The foundations are in place, and with continued investment in digital infrastructure, financial inclusion will expand, driving broader economic development. However, the success of this transformation requires a collective effort from all stakeholders. Government institutions, private sector players, and local and international partners must work hand in hand to build a robust digital ecosystem that truly benefits every Ethiopian.
The digital financial revolution is here, and Ethiopia is seizing every opportunity it brings. With the support of strong partnerships and the resilience of its people, the country is poised to chart a new course towards growth, inclusion, and prosperity.
Chad Pollock is General Manager & VP Visa East Africa
Yared Endale is Country Manager, Visa Ethiopia
