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Articles
Analysis and assessments on DFS
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Research Reports

In-depth content on DFS in Ethiopia
Digital Finance
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08 October 2025Team Shega
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.
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Financial Inclusion
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08 October 2025Team Shega
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.
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Digital Finance
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01 October 2025Team Shega
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.
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Digital Finance
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30 July 2025Team Shega
Card Banking in Ethiopia - Adoption, Challenges & OpportunitiesThis key report by Shega, developed under the AKOFADA project, explores the development of card banking channels in Ethiopia, with a focus on ATMs, POS systems, and various forms of payment cards. Despite this progress, access and usage remain uneven, especially in rural regions where infrastructure, digital literacy, and connectivity pose significant challenges. The report notes that while technological innovations, like biometric-enabled ATMs and prepaid card options, have emerged, the majority of users still engage with cards mainly for withdrawing cash. Broader use of digital payments remains limited. To address these gaps, the report emphasizes the need for targeted efforts to strengthen rural access, expand the functionality of payment tools, enhance user education, and support interoperable solutions through key players like banks, fintechs, and EthSwitch. These efforts are critical to achieving widespread, inclusive financial access across Ethiopia.
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Case Studies

Real stories about DFS in Ethiopia
Financial Inclusion
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9 Jan 2026Team Shega
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 National ID, Ethio Telecom and partners achieved more than 98% repayment rate, proving smallholders are bankable when identity and data are integrated.
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Financial Inclusion
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10 Nov 2025Team Shega
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 .
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Digital Finance
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11 Aug 2025Team Shega
How Kifiya's Technology Infrastructure is Empowering Ethiopian MSMEsDiscover how Kifiya Financial Technology is leveraging AI-powered alternative credit scoring to expand access to finance for Ethiopia’s micro, small, and medium enterprises (MSMEs). This case study highlights how Kifiya’s Banking Platform as a Service (BPaaS) and Origination & Verification Platform (OVP) are enabling faster, more inclusive, and data-driven lending for underserved businesses, while supporting national goals for 70% financial inclusion by 2025.
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24 Jul 2025Team Shega
Integration of Digital Financial Services with Microfinance Institutions in EthiopiaThe case study report explores how Microfinance Institutions (MFIs) in Ethiopia are integrating Digital Financial Services (DFS) to enhance financial inclusion, particularly in rural areas. It highlights the progress made by some MFIs in adopting digital tools like mobile wallets and core banking systems, while also addressing challenges such as high technology costs, limited digital literacy, and infrastructure gaps. The report also emphasizes that digitization is essential for MFIs to expand outreach, improve efficiency, and empower underserved communities.
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Use Cases

Discover practical applications of the DFS Platform
Financial Inclusion
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7 Apr 2026---
Bridging the last mile in Financial Inclusion - Assessment on the Digitalization of SACCOs in EthiopiaThis use case report explores how digitizing SACCOs can accelerate financial inclusion in Ethiopia, where many cooperatives still rely on manual systems despite their wide reach and trusted community presence. It highlights how adopting digital tools across operations and member services can improve efficiency, reduce costs, and expand access, while enabling integration with the broader digital financial ecosystem. Addressing barriers such as low digital literacy, limited technical capacity, and lack of tailored solutions, the report shows how digitized SACCOs can better serve rural communities, women, youth, and micro-enterprises, ultimately acting as a practical bridge to bring underserved populations into formal financial services.
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Financial Inclusion
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5 Feb 2026---
Micro-Transaction Pricing Models to Accelerate Digital Adoption and InclusionThis report analyzes how high digital transaction fees slow the adoption of digital transactions for everyday small purchases in Ethiopia's cash-driven economy. It proposes a redesigned fee model featuring near-zero pricing for micro-transactions, incentives for frequent use, and alternative cost-sharing structures. The goal is to make digital payments affordable and competitive with cash, accelerating financial inclusion and supporting Ethiopia's digital transformation.
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Digital Finance
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2 Feb 2026---
Companion CardsThis use case report presents a compelling case for companion cards as a practical, low‑tech bridge to digital financial inclusion in Ethiopia, where nearly half of adults have accounts but only a small fraction actively use digital payments due to limited smartphone access, low digital literacy, and weak connectivity. It explains how these cards, physical extensions of mobile‑money wallets, provide additional channel for mobile money owners, enable people without mobile phones to store, access, and transact digital value through agents, POS devices, and merchant networks, addressing key rural barriers such as poor network access, difficulty using handsets, and low trust in DFS.
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Digital Finance
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8 Jan 2026---
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.
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Marketing Guides

Comprehensive guides to navigate DFS markets
Digital Finance
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12 Feb 2026Team Shega
AKOFADA Marketing Strategy Guide - Customer Acquisition and Retention This marketing guide outlines strategies for strengthening customer acquisition and retention in Ethiopia’s Digital Financial Services (DFS) ecosystem, focusing on how providers can customers into active and loyal users. Through global and local case studies, the guide shows how evidence‑based, community‑centered marketing combined with context‑relevant messaging and robust feedback mechanisms can move customers from basic awareness to regular usage and long‑term loyalty.
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Digital Finance
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16 Jan 2026Team Shega
AKOFADA Marketing Guide - A guide on Marketing Strategies to Increase Mobile Money Agent ActivitiesThis marketing guide outlines strategies for boosting mobile money agent activities in Ethiopia's Digital Financial Services (DFS) ecosystem, addressing key barriers like liquidity shortages, low digital financial literacy, uneven rural coverage, fraud concerns, and limited provider support. The guide emphasizes a holistic approach to empower agents through targeted recruitment, skill-building programs, tiered incentives, technology tools, trust-building security measures, and data-driven KPIs for sustainable growth and financial inclusion among the population.
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Digital Finance
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15 Dec 2025Team Shega
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.
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Digital Finance
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24 Oct 2025Team Shega
AKOFADA Marketing Guide - A Guide on Crafting Compelling Messaging to DFS Awareness and AdoptionExplore how digital financial services (DFS) in Ethiopia are increasing access and adoption by addressing key challenges such as communication and trust challenges. This guide presents effective marketing strategies that simplify messaging, leverage local culture and storytelling, and engage communities to build trust and drive DFS awareness and usage across diverse Ethiopian populations.
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DFS Local Glossary

Explore key terms and definitions from the DFS Platform
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30 Mar 2026---
Finance Focused DFS Glossary in AmharicDigital Financial Services (DFS) are rapidly expanding in Ethiopia, but language barriers and cultural nuance still limit understanding and adoption. Shega, as part of the AKOFADA Project, has been working on the localization and translation of Digital Financial Services (DFS) terminology into Amharic and Afan Oromo. This work is about turning complex finance focused DFS terms into clear, culturally relevant language that helps improve financial literacy and makes digital financial services more accessible for everyone. This edition is focused on the Amharic translation of finance focused DFS Words and Concepts.
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