Current Status and Future of Agent Banking in EthiopiaThis key report by Shega, developed under the AKOFADA project, explores the growth and challenges of agent banking in Ethiopia. Since its introduction in 2012, agent banking has expanded rapidly, reaching over 500,000 registered agents by mid-2025, driven by platforms like Telebirr and M-PESA and supported by the National Bank of Ethiopia. Despite this progress, most agents are concentrated in urban areas, while rural regions remain underserved. Many agents face low transaction volumes, high costs, and limited provider support, reducing their profitability and impact. The report calls for redistributing agents to rural areas, improving liquidity and training support, enhancing digital infrastructure, and expanding service offerings. Strengthening regulation, interoperability, and financial literacy is also key to making agent banking a sustainable, inclusive, and resilient model for extending financial access across Ethiopia.
Digital Financial Services and Informal Economy in Ethiopia This key report by Shega, developed under the AKOFADA project, examines digital financial services (DFS) adoption in Ethiopia’s informal economy, which employs over 90% of the workforce and contributes a third of GDP. Despite rapid DFS growth, informal workers still rely on cash and savings groups due to barriers like strict KYC rules, high fees, low literacy, poor connectivity, limited device access, low trust, and irregular incomes. The report highlights initiatives such as the National Financial Inclusion Strategy, National Digital Payment Strategy, and the national digital ID (Fayda). It recommends tailored low-cost products, expanded agent networks, literacy training, trust-building, and multi-stakeholder coordination to enhance financial inclusion, support livelihoods, and promote gradual formalization of the informal economy.
Mobile Based Digital Financial Services in EthiopiaThis key report by Shega, developed under the AKOFADA project, explores the rise of Mobile Banking and Mobile Money in Ethiopia. These services have grown rapidly, with banks processing trillions in digital transactions and telecom-led wallets like Telebirr and M-PESA driving mass adoption. Yet, critical gaps remain. Mobile Money, meant to reach the unbanked, is increasingly used by those already banked, while high account dormancy, weak agent networks, and rural and gender disparities limit impact. The report calls for stronger interoperability, simplified KYC, affordable device access, and inclusive literacy programs, highlighting cross-sector collaborations and the opening of Ethiopia’s banking sector as key opportunities to ensure mobile finance translates into meaningful financial inclusion.
Lersha’s Inclusive Agri-Finance in Ethiopia and the Role of National IDThis case study explores how Ethiopia’s National
ID system, Fayda, combined with Lersha’s phygital agrifinance model, is improving smallholder farmers’ access to credit. Ethiopia’s agricultural finance gap remains large, with only 2% of the ETB 2.58 trillion demand met due to weak identification, fragmented data, rigid collateral requirements, and high rural transaction costs. Fayda enables secure KYC and digital credit scoring, while Lersha supports last-mile onboarding and value-chain financing. Pilots supported by Ethio Telecom achieved a 96% repayment rate, proving smallholders are bankable when identity and data are integrated.
AKOFADA Marketing Guide - Capitalizing on Traditional Community Gatherings for Digital Financial Services Outreach in EthiopiaThis marketing guide outlines strategies for promoting digital financial services (DFS) in Ethiopia by leveraging traditional community gatherings to overcome adoption barriers like low digital literacy, trust issues, and geographic isolation. It emphasizes culturally resonant approaches, including market days, religious events, festivals, cooperatives, and women's savings groups, to deliver simplified messaging, interactive demos, and peer-led education that build confidence among rural, low-literacy, and underserved populations.
Assessment of Women Centric Financial Products in EthiopiaExplore how Ethiopia’s financial sector is developing women-centric products to close the gender gap in access to finance. This report highlights how tailored savings, credit, and insurance solutions can empower women, strengthen financial resilience, and advance national goals for inclusive growth and gender equality, assesses barriers to women financial inclusion .
Making the Case for Digital Pension Payments in EthiopiaEthiopia’s pension disbursement system remains heavily reliant on in-person, branch-based processes that limit beneficiaries’ ability to access and use their pension funds digitally. Pensioners are required to withdraw payments physically, are restricted from making digital transactions, and must undergo periodic in-person life verification, creating inefficiencies, high administrative costs, and significant physical and financial burdens for elderly beneficiaries. Introducing a digitally enabled pension payment system, linked to secure digital identity and biometric-enabled life verification, will modernize pension delivery by enabling remote access, digital payments, and account-to-account transfers, while strengthening fraud prevention and advancing financial inclusion.
Multi-User Digital Banking for FamiliesEthiopia’s digital financial services are largely designed for single users, leaving women, youth, and the elderly excluded from managing household finances. Introducing a multi-user digital banking model will align DFS with traditional household structures, enable role-based access for family members, enhance transparency, and reduce the risks of informal credential sharing.
Integrating Digital Payment into City Bus and Train Ticketing Systems in EthiopiaEthiopia’s public transport system remains largely cash-based, resulting in inefficiencies, revenue leakages, and commuter inconvenience. Passengers often face long queues, lack of change, and security concerns due to the absence of a digital fare collection system. Introducing a digital payment system for city buses and trains will modernize fare collection, enhance transparency, and improve service delivery. It also creates opportunities for financial service providers and Fintechs to integrate transit payments with mobile money and banking services, supporting both urban mobility and broader financial inclusion.
