A draft of Ethiopia’s second National Digital Payments Strategy for 2026 to 2030 outlines plans to allow cross-border remittances during the implementation period. Under the proposal, the government will issue clear policy guidance on outbound retail payments, assessing the country’s foreign exchange position and associated risks. If conditions allow, the central bank will issue an “Outbound Remittance Directive” authorizing licensed banks, payment service operators, microfinance institutions, and payment infrastructure providers to offer low-value cross-border transfers via cards, mobile wallets, and digital banking.
The draft strategy was presented at the second Ethiopian Digital Payment Conference at the Skylight Hotel on Monday morning. The event was opened by Deputy Prime Minister Temesgen Tiruneh and National Bank of Ethiopia Governor Eyob Tekalign(PhD).
Another key highlight of the conference was the launch of Ethiopay, an instant payment system developed by EthSwitch, the national switch operator. The platform provides a secure and interoperable infrastructure for person-to-person transfers, QR payments, bulk payments, and cross-border transactions, forming the backbone of Ethiopia’s digital payment ecosystem.
The updated strategy aims to expand digital payment adoption, upgrade financial infrastructure, and reduce barriers for underserved groups. It builds on rapid growth in Ethiopia’s digital finance sector. Mobile money accounts have surged from fewer than 1 million in 2020 to more than 128.5 million by the end of 2024. Total digital accounts surpassed 102.8 million by mid-2023, while transaction volumes for the 2023/24 fiscal year reached 9.7 trillion Birr, exceeding cash transactions in value. Mobile money transactions alone increased by 34,631 percent between 2019 and 2024.
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