Africa’s digital payments economy is projected to grow significantly, with a recent Mastercard-commissioned report by Genesis Analytics forecasting that it will reach $1.5 trillion by 2030. As a longstanding partner in Africa’s technological advancement, Mastercard is doubling down on its commitment to the continent’s digital growth through strategic investments, public-private partnerships, and innovative initiatives.

Mastercard’s efforts aim to enhance digital connectivity, broaden economic opportunities, and empower millions of individuals and businesses to thrive within the digital economy. The company is focusing on three primary areas to accelerate digital adoption and financial inclusion: supporting Micro, Small, and Medium Enterprises (MSMEs), empowering the fintech sector, and scaling cross-border payments.

“Africa is filled with immense possibilities, and its people have the potential to shape the global economy in the decades ahead,” said Dimitrios Dosis, President of Eastern Europe, Middle East, and Africa at Mastercard. “By increasing our investments and fostering inclusion, we are helping build a more connected and accessible digital future.”

The report highlights the rapid advancements in internet penetration and financial inclusion as key drivers of Africa’s digital transformation. Internet access is expected to grow at a compound annual rate of 20%, while financial inclusion is projected to expand at 6% annually. This shift towards digital transactions reflects a greater acceptance of contactless solutions, further promoting economic participation and accessibility.

Mastercard’s commitment to Africa’s MSMEs is particularly noteworthy, as these businesses contribute over 50% of the continent’s GDP. Through initiatives like the Mobilizing Access to the Digital Economy (MADE) Alliance, Mastercard aims to extend digital access to 100 million individuals and businesses in the coming decade. The company has set a target to register 15 million users on its Community Pass platform, which connects remote communities to vital services.

Africa’s burgeoning fintech ecosystem is another focal point for Mastercard. With nearly half of all fintech firms established in the last six years and $6 billion raised in equity financing, the sector is recognized as a key driver of economic progress. Mastercard is collaborating with banks and telecom companies to foster fintech growth and expand into new markets, exemplified by its partnerships with M-Pesa in Kenya and MTN Group Fintech.

These collaborations enable millions of unbanked individuals to access financial services through mobile platforms. Additionally, Mastercard’s global Fintech Express program offers fintech companies streamlined support for card issuance, enhancing security and consumer protection against online scams.

Cross-border transactions are vital for economic mobility in Africa, with the continent receiving approximately $100 billion in remittances in 2023, making up about 6% of its GDP. Mastercard is enhancing the ease of these transactions through its Cross-Border Services, which provide a secure and reliable mechanism for remittances.

Recent partnerships with Africa’s Access Bank and Equity Bank aim to simplify and enhance the convenience of cross-border payments. These collaborations allow customers to execute transactions across multiple markets via various methods, including bank accounts, mobile wallets, and cash.

Despite artificial intelligence (AI) making significant contributions to Ethiopia’s education, agriculture, and finance sectors, the country’s AI sector faces critical challenges, including data scarcity and a lack of skilled manpower. These issues threaten Ethiopia’s ability to fully leverage AI for socioeconomic development and compete globally in the rapidly evolving technology landscape.

Dr. Worku Gachena, Director General of the Ethiopian Artificial Intelligence Institute (EAII), highlighted the importance of data as the “fuel” for AI systems during a press conference at the Ethiopian International Technology Expo. “The biggest challenge we face is accessing data properly,” he stated, adding that much of the available data is of poor quality. To address this, EAII is developing a comprehensive data policy and AI strategy to ensure institutions use data effectively while aligning with global standards.

The lack of skilled professionals in Ethiopia’s AI sector further compounds the problem. To tackle this issue, EAII is collaborating with higher education institutions to integrate AI into curricula and train students in advanced technologies. This initiative aims to build a talent pipeline capable of driving innovation in Ethiopia’s burgeoning AI ecosystem.

The Ethiopian government has demonstrated its commitment to advancing AI by approving the National AI Strategy during its 37th regular meeting on June 27, 2024. The policy outlines a framework for technology adoption, data governance, and workforce development while fostering collaboration among stakeholders. These measures aim to create an enabling environment for AI innovation and address systemic barriers that hinder progress.

The Ethiopian International Technology Expo, scheduled from May 16–18, 2025, will showcase Ethiopia’s potential as a hub for technology innovation in Africa. Organized in collaboration with the Information Network Security Administration (INSA), the event will feature over 100 local and international tech firms, 50 startups, panel discussions, hackathons, and robotics competitions.

Dr. Tigist Hamid, Director-General of INSA, emphasized the importance of cybersecurity alongside digital transformation efforts: “As we embrace emerging technologies like AI, cyber threats will grow in type and size. Strengthening coordination and adopting new technologies are essential to safeguard Ethiopia’s digital sovereignty.”

Experts believe Ethiopia’s AI sector holds immense potential to transform industries such as agriculture through precision farming techniques that optimize yields and reduce resource use. Similarly, AI-driven tools can enhance financial inclusion by improving credit scoring systems for underserved populations and streamlining operations in manufacturing through automation.

However, persistent challenges such as fragmented IT infrastructure and limited access to reliable data continue to hinder progress. Public-private partnerships are seen as crucial for building robust digital ecosystems that support innovation while addressing gaps in funding and capacity-building efforts.

As Ethiopia works toward its Digital Ethiopia 2025 goals, addressing challenges in its AI sector will require coordinated efforts across government institutions, academia, and private industry. By investing in data infrastructure, workforce development, and cybersecurity measures, Ethiopia can position itself as a leader in Africa’s digital transformation journey while ensuring inclusive growth driven by cutting-edge technologies like artificial intelligence.

In a bid to address significant challenges within its financial management framework, the Ethiopian government is implementing a Treasury Single Account (TSA) system. This initiative, led by the Ministry of Finance (MoF), aims to streamline government cash management by consolidating funds into a single account, thereby enhancing transparency and efficiency.

The existing system has been criticized for lacking transparency and efficiency, leading to higher borrowing costs and difficulties in meeting financial obligations. The widespread use of multiple bank accounts for government transactions has obscured the actual financial balance, creating thousands of unnecessary accounts and complicating cash management.

Bizuneh Bekele, a financial expert, highlighted that the reliance on monetary rates rather than active management exacerbates these issues, often resulting in delayed payments and the need for costly loans. The practice of using “B” accounts for budget allocation has weakened zero-balance accounting principles, further complicating financial oversight.

In response, the MoF, in collaboration with the National Bank of Ethiopia (NBE) and the Commercial Bank of Ethiopia (CBE), is actively working on TSA implementation. This system will integrate government funds into a single account, providing a clear picture of the financial position and enabling informed decision-making.

Preparatory work is underway to integrate technological systems between these entities, laying the groundwork for the TSA. State Minister Eyob Tekalgn emphasized that the TSA will manage government funds efficiently, contributing significantly to national development by ensuring proper use of revenues.

A significant initiative launched last year by the Ministry of Finance and FSD Ethiopia has seen a marked increase in digital payments within federal institutions, rising from 46% to 96% over the past year. This shift from paper-based processes to digital systems aims to enhance transparency and integrate disparate work into a unified structure.

To ensure strong governance, a TSA management committee has been established, headed by the Ministry of Finance and comprising key stakeholders. An e-payment usage growth monitoring system has also been implemented to bring unprecedented transparency to these changes.

Public events in Ethiopia’s capital have evolved into battlegrounds for historical narratives and political power, according to a recent study by the Ethiopia Peace Research Facility (PRF). The report, titled “Politicizing Public Events in Addis Ababa,” examines how events like Adwa Victory Day, the Irrecha festival, Meskel Square commemorations, and the Great Ethiopian Run have become platforms for advancing competing agendas and fostering social tensions.

Since the 2018 elections, Ethiopia has witnessed a significant shift in its political landscape, marked by the clash between two dominant narratives: the “Great Tradition” (GT) narrative, which emphasizes central state power and national unity under Prime Minister Abiy Ahmed, and “Counter-Histories” (CHs), which seek to elevate marginalized voices and challenge dominant interpretations.

The Adwa Victory Day celebrations illustrate this conflict, with the GT narrative glorifying Emperor Menelik II’s leadership while CHs highlight the contributions of marginalized groups often excluded from official accounts. “Historical events often become hotbeds of memory, where political alignment and interpretations of socio-economic realities shape,” the report states.

Once mere memorials, public events in Addis Ababa have transformed into platforms for political expression. The Irrecha festival, for example, now symbolizes the struggle for cultural recognition, while races and other events reflect tensions between religious and historical identities. The Great Ethiopian Run has become a forum for political expression, illustrating how these events actively contest historical memories and reflect broader power dynamics in Ethiopian society.

The report emphasizes that historical interpretation lacks inherent objectivity, reflecting diverse perspectives shaped by unique societal experiences. This multifaceted nature of history is not a flaw but a reflection of its dynamic character. Competing narratives play a central role in shaping collective memory and grievances.

The study urges policymakers to consider historical power inequalities in national processes such as national dialogue, transitional justice initiatives, and restorative programs. Addressing past abuses is crucial for encouraging reconciliation and building a more just society. “Current national processes in Ethiopia should carefully consider the role of historical power imbalances in shaping collective memory and grievances,” the report recommends.