As Ethiopia’s digital payments landscape undergoes rapid transformation, the issue of financial security and risk management has risen to the forefront for banks, fintechs, and regulators alike. At the heart of this evolving ecosystem stands Basil Kithinji, Director of Risk for Visa East Africa. Renowned for his expertise in building resilient digital payment systems, Kithinji leads regional initiatives to combat fraud, bolster cybersecurity, and foster collaboration among key industry players.
Recently, he was in Addis Ababa to spearhead a Visa-led risk management training for Ethiopian financial institutions—an event described as both timely and essential as the sector accelerates its digital transition. Beyond the classroom, Kithinji is a familiar voice in public forums and industry studies, championing the role of risk management as a key driver for consumer trust and sustainable growth.
In this exclusive interview with Capital, Kithinji discusses the most pressing risk management challenges facing Ethiopian banks and fintechs, practical strategies for building resilience, and the importance of collaboration and capacity building. He also shares insights into how Visa is supporting ongoing improvements in digital payment security and offers advice for institutions just beginning their risk management journeys.
Capital: Can you provide an overview of the key objectives and focus areas of the risk management training you conducted for financial institutions?
Basil Kithinji: The training, hosted by Visa in Addis Ababa, was a carefully curated one-day event designed to equip Ethiopian financial institutions with the necessary tools and insights to navigate the shifting dynamics of the digital payments ecosystem. The program focused on enhancing operational excellence across risk, compliance, and digital banking, while also promoting practical risk assessment and mitigation strategies. A key emphasis was placed on encouraging collaboration and peer learning among banks, fintechs, and digital banking teams. Ultimately, the training aimed to promote resilience and inclusion within Ethiopia’s growing digital economy.
Capital: What are the most pressing risk management challenges currently facing Ethiopian banks and fintech companies in the digital payments space?
Kithinji: Ethiopian banks and fintechs are operating in an increasingly complex risk environment. One of the most urgent challenges is the rise of cybersecurity threats, which continue to escalate as digital adoption accelerates, often without corresponding advances in defense mechanisms. Fraud and identity theft also remain prevalent, largely due to weak authentication systems and limited public awareness. Navigating regulatory compliance presents another layer of complexity, particularly for emerging fintechs that are grappling with the evolving guidelines of the National Bank of Ethiopia. Additionally, many institutions suffer from operational silos that obstruct cross-functional risk visibility and slow down responses. Infrastructure gaps, especially in rural areas, further complicate the delivery of reliable digital financial services.
Capital: How does effective risk management contribute to building trust and fostering growth in Ethiopia’s digital payment ecosystem?
Kithinji: Effective risk management plays a far more strategic role than simply meeting compliance requirements. It lays the foundation for consumer trust by ensuring that transactions are secure and systems are reliable. When customers believe in the integrity of digital payment platforms, adoption increases, which in turn drives financial inclusion. Moreover, sound risk frameworks reduce uncertainty, making the space more appealing for innovation, investment, and long-term growth. By aligning operations with regulatory expectations, financial institutions also ensure sustainability and build stronger relationships with stakeholders.
Capital: What practical strategies or tools did you introduce during the training that participants found particularly valuable?
Kithinji: Participants engaged with a range of tools and strategies that had immediate relevance to their operations. Case studies based on real-world fraud scenarios and cyber incident responses offered practical insights, while interactive risk mapping exercises helped attendees identify vulnerabilities within their digital channels. Scenario planning was introduced to help institutions anticipate emerging threats such as AI-driven fraud. Perhaps most impactful was the peer-to-peer knowledge exchange that allowed institutions to benchmark practices and learn from each other’s experiences, making the learning deeply contextual and actionable.
Capital: How do you tailor risk management approaches to address the unique regulatory and operational environment in Ethiopia?
Kithinji: Visa tailored the training content to closely reflect Ethiopia’s unique regulatory and operational realities. This included aligning with local regulatory expectations—particularly the risk governance frameworks mandated by the National Bank of Ethiopia—as well as accounting for infrastructure limitations and the varying levels of digital literacy across the country. The training also addressed the growing influence of mobile money platforms like Telebirr and M-Pesa, which bring their own set of risk considerations. Importantly, the content was adapted to resonate with Ethiopia’s institutional culture, ensuring that the strategies presented were both realistic and implementable.
Capital: In your experience, how prepared are financial institutions to manage emerging risks such as cyber threats and fraud in digital payments?
Kithinji: There is a clear divide in preparedness across institutions. Larger banks have begun investing in the necessary infrastructure and frameworks to address these emerging risks, but many other institutions are still in the early stages of development. Cyber resilience remains an area of concern, as does the implementation of real-time fraud monitoring systems. The training revealed a pressing need for ongoing capacity building, particularly in terms of workforce development and investment in relevant technologies. Raising digital risk awareness among staff remains a foundational challenge that must be addressed to close the readiness gap.
Capital: What role does collaboration among financial institutions, regulators, and technology providers play in strengthening risk management frameworks?
Kithinji: Collaboration is absolutely critical in today’s digital risk landscape. Stronger risk management frameworks are often built through shared knowledge and coordinated efforts across the ecosystem. Banks, fintechs, regulators, and technology providers must work together to share threat intelligence, co-develop secure technologies, and support joint innovation initiatives such as secure APIs and interoperability platforms. Visa continues to play a vital role in fostering these connections, serving as a trusted partner that facilitates open dialogue and ecosystem-wide alignment.
Capital: How does Visa support ongoing capacity building and knowledge sharing beyond this training event to ensure sustained improvements in risk management?
Kithinji: Visa’s commitment to risk management in Ethiopia extends well beyond a single training session. The company provides ongoing educational opportunities through webinars, training programs, and access to global best practices. Institutions are also supported with risk management toolkits, strategic partnerships, and mentorship programs designed to build long-term capacity. This sustained engagement ensures that the learnings from the training are reinforced and translated into operational improvements over time.
Capital: What are the critical next steps for Ethiopian financial institutions to further enhance their risk management capabilities in the evolving digital economy?
Kithinji: To maintain momentum, Ethiopian financial institutions need to prioritize investments in cybersecurity infrastructure and human capital. Building integrated risk management systems that span both traditional and digital channels will be crucial. In parallel, institutions must focus on educating their customer base to reduce fraud risks associated with low awareness. Equally important is continued engagement with global partners like Visa, which can provide expertise, resources, and strategic guidance to help institutions remain ahead of emerging risks.
Capital: How do you see the risk management landscape evolving in Ethiopia and the broader East African region over the next five years?
Kithinji: Looking ahead, the risk management landscape in Ethiopia and East Africa is poised for transformation. Regulatory frameworks are expected to become more sophisticated and harmonized across the region, fostering greater alignment and compliance. There will likely be increased adoption of artificial intelligence and machine learning in fraud detection and risk monitoring. Digital identity systems are also set to expand, which will significantly reduce impersonation and identity fraud. Furthermore, regional collaboration on cross-border payment security will become more critical as financial ecosystems become increasingly interconnected.
Capital: What advice would you give to financial institutions just beginning to develop or strengthen their risk management practices in digital payments?
Kithinji: For institutions at the start of their risk management journey, the first step is conducting a thorough risk assessment tailored to their digital services and operating context. Building a strong governance structure with clear responsibilities is essential. Institutions should invest in ongoing training for their staff and foster a culture of awareness and accountability. Partnering with experienced industry players like Visa can provide valuable direction and support. Above all, financial institutions should adopt a proactive and continuous approach—risk management is not a one-time effort, but a dynamic and evolving process.
