Sunday, October 18, 2026

Optasia partners with ETTA to expand credit access in Ethiopia

By Eyasu Zekarias

Optasia, a global fintech company specializing in AI-powered credit-scoring services, has partnered with the Ethiopian technology firm ETTA Technology. This collaboration aims to enhance access to credit for local merchants and small businesses across Ethiopia.

This strategic partnership aligns with the rapid expansion of digital financial services and specifically targets micro, small, and medium-sized enterprises (MSMEs). The goal is to help these businesses overcome traditional barriers to obtaining bank loans.

ETTA Solutions PLC provides technology solutions designed to modernize business operations, streamline payment systems, and organize commercial data.

Temesgen Gebrehiwot, CEO of ETTA, informed Capital that the partnership with Optasia seeks to enable creditworthiness assessments for merchants based on their daily financial transactions.

According to reports published in July 2026, Optasia’s planned expansion into Ethiopia and Egypt is part of a broader strategy to extend credit accessibility across underserved African markets.

A primary objective of the partnership is to establish an automated underwriting framework that evaluates creditworthiness by analyzing merchants’ digital transaction histories.

In Ethiopia, many small merchants conduct daily business transactions but lack formal financial statements. Most track sales manually in paper ledgers or operate primarily in cash, making it challenging for conventional banks to accurately assess their actual cash flow.

To address this challenge, ETTA developed Zuriya, a digital management platform that enables merchants to log sales, manage payments, and systematically record business data.

According to ETTA, Zuriya processed over 120 billion birr in transaction volume in its first year, onboarding more than 3,000 merchants. The company reported that participating merchants experienced over a 5% increase in business activity.

ETTA emphasized that the joint credit-scoring model will integrate this operational data with other key business metrics to reliably estimate repayment capabilities.

However, Temesgen clarified that achieving a favorable credit score does not guarantee immediate loan approval. Banks will still need to perform due diligence regarding repayment capacity, loan terms, and regulatory compliance.

Limited access to commercial bank credit remains a major bottleneck for private sector growth in Ethiopia. Small businesses critically require working capital to purchase inventory, acquire equipment, and scale operations.

Historically, obstacles such as insufficient tangible collateral, a lack of verifiable credit history, and informal record-keeping have prevented many merchants from securing bank financing.

AI-driven credit assessment systems offer an alternative mechanism to evaluate cash flow dynamics, unlocking financial opportunities for businesses unable to satisfy conventional banking criteria.

Optasia leverages AI algorithms and mobile data to deliver micro-loans, working capital financing, and other digital credit products targeting unbanked and underbanked populations and businesses.

For its part, ETTA delivers technology solutions encompassing operational modernization, payment processing, sales recording, and data management. ETTA’s platform ecosystem enables merchants to capture sales data, manage receivables, track revenues and expenses, and maintain compliance with electronic invoicing and tax regulations.

The company also highlighted its recent partnership with Visa, aimed at extending digital payment acceptance beyond large urban enterprises to small shops and informal trade hubs. The planned credit-scoring framework with Optasia builds upon this foundation, bridging commercial data with mainstream financial institutions to expand credit access for merchants.

Optasia’s entry into the Ethiopian market represents a major milestone following the country’s historic decision in 2024 to open its banking sector to foreign investors—a policy initiative intended to attract international capital, foster market competition, and introduce innovative financial services.

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