Ethiopia’s National ID program is transitioning from a project-based initiative into a state-owned enterprise under the name ‘Faydaverse’, with plans to expand digital wallet and credential-verification services across public and private sectors.
The National ID program, widely known as Fayda, has been placed under the Ethiopian Investment Holdings (EIH) portfolio. Officials say the restructuring will reduce reliance on donor funding and create a financially sustainable and commercially driven institution.
Saminas Seyfu, Director of Stakeholder Engagement and Communication at the Ethiopia National ID Program, said the transition would provide greater operational flexibility and help the institution attract and retain specialized technology professionals.
“Agility is paramount, requiring us to move beyond the rigid confines of a traditional government agency,” Saminas told Capital. “As an autonomous, innovation-driven entity, we require a dynamic operating environment.”
He said operating as a state-owned enterprise would allow Faydaverse to compete more effectively for skilled professionals in the technology sector.
“We are competing directly with major global tech ecosystems. When evaluating our talent pool, retention is critical,” he added.
A central part of Faydaverse’s strategy is the expansion of Ethiopia’s digital wallet and credential-management infrastructure. The system currently supports verification of educational credentials, civil-service records and core government documents.
Officials plan to expand the platform to include academic transcripts, professional licenses, healthcare records, property titles, certified asset documents and financial compliance information, including Know Your Customer requirements.
The proposed digital wallet would allow citizens to securely store, manage and authorize verified credentials through an interoperable platform. Institutions could then verify information electronically, reducing administrative costs, document fraud and delays in service delivery.
The system is also being integrated with tax administration, according to officials. Saminas said improved identity verification could help broaden the tax base, reduce evasion and support the formalization of emerging sectors such as private transportation and small-scale commerce.
Beyond Ethiopia, Faydaverse is seeking to provide digital identity services to other African countries. The program has established an operational presence as an implementation partner in Mozambique and Zambia.
“We are leveraging South-South collaboration to export digital public infrastructure as a service,” Saminas said, adding that the services include system deployment, legal and policy development, procurement advice and technical consultancy.
Officials say the transition will allow Faydaverse to generate independent commercial revenue while continuing to support national development priorities.
The initiative’s success will depend on institutional participation, data accuracy, cybersecurity and public trust. Authorities will also need to ensure that citizens without smartphones, reliable internet access or digital skills are not excluded from essential services.
The restructuring marks a new phase for Ethiopia’s National ID program, which is now expected to serve not only as an identification system but also as a foundation for digital public services, financial inclusion, tax administration and economic formalization.
