EthSwitch has successfully integrated the Ethiopian banking industry into a comprehensive digital transaction system, marking a significant advancement in the country’s financial landscape. Established in 2011, EthSwitch announced during the recent fiscal year that it has connected all banks to its digital platform, playing a crucial role in advancing the National Digital Payment Strategy aimed at fostering an inclusive digital payment ecosystem.

According to EthSwitch’s report for the fiscal year ending 2023/24, the organization achieved notable milestones in facilitating financial service providers within the digital payment ecosystem. Solomon Desta, a board member at EthSwitch, highlighted that one of the key accomplishments this year was the expansion of its interoperability network. By onboarding new participants—including banks, microfinance institutions (MFIs), payment service operators (PSOs), and payment instrument issuers (PIIs)—EthSwitch has enabled seamless integration across various financial services.

Additionally, Solomon noted the progress of the National Payment Gateway, which began its pilot phase at the start of the fiscal year. Following validation by the National Bank of Ethiopia, commercialization approval was granted in May 2024.

During this fiscal year, EthSwitch reported revenues exceeding 1.13 billion Birr, reflecting an impressive 86% increase from the previous year. The organization also generated over 320 million Birr in supplementary income from other sources. Overall, EthSwitch’s total revenue reached 1.45 billion Birr, marking an 89% year-on-year increase.

EthSwitch encompasses all banks in Ethiopia, including the National Bank, and reported a net profit before tax for 2023/24 of over 1 billion Birr, representing a substantial 97% increase compared to the previous year.

Yilebes Addis, CEO of EthSwitch, noted that the company’s paid-up capital exceeded 1.7 billion Birr during the last financial year, contributing to a total of 57 billion Birr. Additionally, EthSwitch facilitated 2.1 million point-of-sale (POS) transactions throughout this period.

The organization aims to enhance interoperability among financial institutions and has successfully made ATMs and POS devices operated by all banks compatible starting in the fiscal year 2023/24. This development is expected to significantly improve the efficiency and accessibility of digital payments across Ethiopia.