Ethiopia, long dominated by cash transactions, is quietly emerging as one of Africa’s fastest-growing mobile payment markets. In a statement to the House of People’s Representatives today, Prime Minister Abiy Ahmed revealed that 58 million Ethiopians now use digital wallets, a dramatic shift from a cash-centric economy to a digitally enabled financial system. Mobile-based transactions have surged 60 percent in the past six months and year-on-year, underscoring the rapid adoption of digital finance across the country.
Ethiopia joins Africa’s mobile shift
The expansion of mobile payments in Ethiopia mirrors patterns seen in other parts of Africa. In Kenya, platforms such as M-Pesa have transformed financial participation for over 80 percent of adults, while in Nigeria, Moniepoint, Opay, PalmPay and Kuda are reshaping payments. Moniepoint alone processed N412 trillion ($297 billion) and handled more than 14 billion transactions in 2025, averaging 444 transactions per second. Data from the Nigeria Inter-Bank Settlement System shows the central payment gateway processed N600 trillion ($432.73 billion) in 2023 and N1.07 quadrillion ($771.69 billion) a year later. Ethiopia’s growth, though quieter on the international stage, is similarly transformative for its population and economy.
Prime Minister Abiy described the uptake of mobile wallets as “transformative,” attributing the growth to deliberate policy measures and telecom expansion. At the start of the reform period, Ethiopia had 37 million mobile subscriptions; today, that number exceeds 97 million, providing a foundation for financial services to reach previously underserved urban and rural populations. Digital wallets are supporting growth in household savings, up 15 percent, financial inclusion, up 11 percent, and mobile-based lending services, now reaching 15 percent of the population.
Ethiopia’s fintech-led inclusion accelerates growth
The surge in mobile money is particularly impactful for youth, rural residents, and informal sector workers, groups historically excluded from formal banking. Increased access to digital finance is expanding credit for small businesses, reducing reliance on informal lenders, and fostering micro-enterprise development.
The expansion aligns with Ethiopia’s broader Digital Ethiopia 2030 strategy, which seeks to deepen digital access, integrate e-services, and encourage a technology-driven economy. By moving from cash to digital wallets, Ethiopia is reducing transaction costs, broadening the tax base, and creating a financial infrastructure that can support accelerated economic growth.
Ethiopia’s mobile payment revolution, driven by companies such as Arifpay, Chapa, and Kifiya, reflects a quiet but profound shift in how Africans are transacting, saving, and borrowing. While Nigeria and Kenya often capture headlines, the Ethiopian story shows how careful policy, telecom investment, and rising consumer adoption can rapidly reshape a country’s financial system. In just three years, millions of Ethiopians have embraced digital wallets, signaling a new era for financial inclusion in Africa’s second-most populous nation.
