Ethiopia Doubles Down on Digital Payments: Government Mandates Acceptance Across All Offices
Ethiopia is accelerating its journey towards a digital-first economy with a bold new directive: all government offices nationwide are now mandated to accept electronic payments from any licensed provider. This move marks a significant enforcement push outlined in the ambitious Digital Ethiopia 2025 strategy, promising increased efficiency and transparency in public services. The initiative aims to streamline transactions, reduce reliance on cash, and foster broader financial inclusion across the country.
Breaking the Monopoly, Embracing Open Competition
Previously, the state-owned mobile money platform, Telebirr, held a de facto monopoly over many government-related digital transactions. This new mandate breaks down those barriers, opening the field to other licensed digital payment providers and fostering a more competitive landscape.
The Ministry of Revenues has issued a directive requiring all government institutions, at both national and local levels, to integrate and support various approved digital payment platforms within the next 90 days. This shift from optional adoption to mandatory acceptance will significantly impact how citizens interact with the government, simplifying processes such as paying taxes, renewing licenses, and accessing public services. By promoting a level playing field, the Ethiopian government hopes to stimulate innovation within the fintech sector and drive further advancements in digital payment solutions tailored to the African context.
This mandate not only accelerates Ethiopia’s digital transformation but also showcases the government’s commitment to fostering a vibrant and inclusive digital economy. By embracing open competition and requiring universal acceptance of digital payments, Ethiopia is positioning itself as a leader in leveraging technology to improve governance and empower its citizens. The success of this initiative could serve as a model for other African nations striving to modernize their public services and unlock the potential of digital finance.
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