• Ethiopia launches 2026-2030 digital payment strategy and instant system Ethiopay
• Strategy targets inclusion, security, and cross-border retail payment access
• Digital reforms support AfCFTA integration and process $119 billion annually

Ethiopia has launched a national digital payment strategy and a new instant payment system as part of efforts to modernize its financial system and expand access to digital services, particularly among underserved populations.

The National Digital Payment Strategy (NDPS) for 2026-2030 is a five-year roadmap aimed at strengthening interoperability, trust and innovation in payments. It includes plans to facilitate low-value retail cross-border transfers through cards, mobile wallets and digital banking services. The strategy also prioritizes system security, interoperability between providers and consumer protection, while seeking to narrow usage gaps between urban and rural areas and between men and women.

The instant payment system, known as Ethiopay, was developed by national operator EthSwitch. It provides a secure and interoperable infrastructure for instant peer-to-peer transfers, QR code payments, bulk payments and selected cross-border transactions, making it the backbone of Ethiopia’s domestic digital payments system.

The initiatives build on Ethiopia’s broader Digital Ethiopia 2025 and Digital Ethiopia 2030 programmes, which aim to transform economic, administrative and social systems through digital technology. These programmes focus on modernizing public services, improving connectivity and expanding the role of private-sector operators.

Officials say the reforms are already delivering results, with more than 18.5 trillion birr ($119 billion) processed annually through digital platforms. The entry of Safaricom Ethiopia with M-Pesa, the rollout of Ethio Telecom’s Telebirr and the gradual integration of the national digital identification system, Fayda, have contributed to the development of the digital payments ecosystem.

The rollout of the NDPS and Ethiopay is expected to simplify everyday payments, support financial inclusion and streamline commercial transactions. It is also expected to play a strategic role in regional integration by allowing Ethiopia to more quickly benefit from the African Continental Free Trade Area (AfCFTA).

The AfCFTA covers 1.4 billion people and has a combined gross domestic product of $3.4 trillion, according to its Secretary General, Wamkele Mene.

Samira Njoya