Ethiopia’s digital economy has experienced rapid growth, with digital transactions now exceeding 18 trillion birr annually, more than three times the country’s gross domestic product (GDP), according to the National Bank of Ethiopia (NBE). This milestone was announced during the official launch of FenanPay, a new digital payment platform developed by Ethiopian talent under B-Net Technology Solutions.
Solomon Damtew, Director of Payment and Settlement at the NBE, highlighted the dynamic transformation taking place in Ethiopia’s digital finance sector. “The digital finance sector is changing rapidly,” Solomon said. Previously dominated solely by banks, the ecosystem is now expanding to include innovative institutions like FenanPay. He emphasized that within a single year, digital transactions in Ethiopia will surpass 18 trillion birr, underscoring the sector’s massive growth potential. However, Solomon noted that the majority of Ethiopians remain outside the digital financial system, pointing to significant opportunities yet to be explored.
The newly launched FenanPay aims to address two key barriers hindering financial inclusion in Ethiopia: high transaction fees and fragmented payment systems. Data indicates that although Ethiopia’s population approaches 130 million, only 39% have access to banking services, and a mere 9% actively use banking or mobile money platforms.
Biniam Negesu Mulisa, Board Chairman of FenanPay, explained that the platform intends to create a single digital hub uniquely connecting all banks, providing comprehensive services to businesses and consumers alike. By doing so, FenanPay aims to reduce transaction fees dramatically, working towards the ambitious goal of zero commission. “We built this system entirely with Ethiopian talent,” Biniam said. He proudly cited FenanPay’s impressive 99% transaction success rate within just five months of licensing, which has fueled continued collaboration with the National Bank.
Beyond payment services, FenanPay plans to offer essential software solutions designed to help businesses optimize operations and cut unnecessary costs. During a six-month trial phase, the platform successfully processed over 1.5 million transactions, transferring more than 1.5 billion birr, demonstrating its reliability and efficiency well before its formal launch.
