MPESA gets license to operate in Ethiopia
The National Bank of Ethiopia on May 11, 2023 issued a mobile money service license to Safaricom MPesa Mobile Financial Service Plc.
It is the first mobile money operating license given to a foreign investor in one of Africa’s fastest growing economies.
MPESA is the pioneer and largest mobile money services provider in the world.
Ethiopia’s closed economy has been opening up to foreign investment in recent years under the government of Prime Minister Abiy Ahmed.
“With NBE support, the menu of digital finance offerings-including mobile banking, mobile wallets, internet banking, and card banking – has expanded rapidly in recent years,” the National Bank of Ethiopia said.
The regulator has promised to deepen Ethiopia’s digital finance ecosystem to enable efficient, safer and transparent digital financial services to thrive.
“To this end, we will strongly support the spread of digital payment systems as a substitute for cash-based transactions within the economy,” the bank added.
Safaricom entered the Ethiopian market as the first foreign telco in 2021. The telco beat its only competitor MTN of South Africa for the right to operate in one of Africa’s and the world’s most closed markets.