Kacha Digital Financial Service, the pioneering private payment instrument issuer in Ethiopia, has emerged as the winner of the highly anticipated Ethiopian edition of the esteemed Visa Everywhere Initiative (VEI) for 2023. This global innovation program and competition for start-ups and fintech companies have recognized Kacha as the frontrunner, catapulting them into the spotlight of the financial technology landscape.

Kacha has been awarded a monetary prize of USD 25,000, underscoring its innovative approach to transforming the financial sector in Ethiopia. This substantial reward not only acknowledges their remarkable achievements but also provides a significant boost to their continued growth and development.

With several contenders vying for the top spot, Qena, a formidable participant, secured an impressive second place, earning a well-deserved prize of USD 15,000. Meanwhile, Smile Pay, a noteworthy contender in its own right, clinched third place and received a commendable USD 10,000.

The Visa Everywhere Initiative serves as a global platform that celebrates and encourages groundbreaking ideas and innovative solutions within the fintech realm.

The success of Kacha, along with the achievements of Qena and Smile Pay, highlights the vibrant and burgeoning fintech ecosystem in Ethiopia.

As Ethiopia embraces the digital revolution in the financial sector, Kacha’s victory stands as a testament to the remarkable potential and transformative power of innovative start-ups and fintech companies. With their groundbreaking solutions and unwavering determination, these trailblazers are reshaping the way we perceive and interact with money, propelling Ethiopia into a new era of financial innovation and inclusion.

British International Investment (BII) and FMO, the Dutch entrepreneurial development bank, have jointly committed up to USD 20 million each to Dashen Bank of Ethiopia. The loan aims to support the country’s agricultural sector, which employs 80 Pct of the population, contributes 39 Pct to the GDP, and generates 90 Pct of its foreign currency from exports. The funding will enable Dashen Bank to provide USD-denominated loans, helping farmers increase productivity in areas such as harvesting, logistics, and processing while boosting export earnings. The financial support will also benefit other agricultural enterprises, including cut flower and coffee producers, promoting innovation, business growth, improved quality and safety standards, and value addition.

This collaboration marks the first foreign investment in Ethiopia’s financial services sector under the new intermediation directive for banks issued by the National Bank of Ethiopia in 2021. By providing long-term funding, BII and FMO aim to catalyze the market, build investor confidence, and mobilize more private capital. The partnership will also support Dashen Bank in enhancing governance, risk management, environmental and social practices, as well as gender equality standards.

Asfaw Alemu, CEO of Dashen Bank, expressed his satisfaction with achieving this milestone and highlighted the significance of the funding for supporting export-oriented agribusinesses in Ethiopia. 

Marnix Monsfort, Director of Financial Institutions at FMO, underlined the importance of attracting foreign direct investments and USD funding to create jobs and foster financial inclusion in rural communities.

This investment not only addresses the need for foreign exchange and capital in Ethiopia but also showcases international confidence in the country’s agricultural potential. It sets the stage for future investments, promoting sustainable financing practices and contributing to Ethiopia’s economic growth and development.

ITSS  becomes Temenos’ exclusive implementation partner for digital banking solutions in Ethiopia, further reinforced by its official corporate office launch, solidifying its commitment to growth in the Ethiopian market.