@financialinclusion – Ethiopian Business Review

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Three of the country’s state-owned financial institutions—the National Bank of Ethiopia (NBE), the Commercial Bank of Ethiopia (CBE), and the Development Bank of Ethiopia (DBE) have jointly launched the Financial Sector Strengthening Project (FSSP), a USD700 million initiative financed by the World Bank.

The project’s first disbursement, amounting to USD250 million, was transferred today to the Commercial Bank of Ethiopia , signaling the operational kickoff of the reform agenda.

Announced during the Ethiopia Finance Forum, the FSSP is aimed at enhancing the resilience, inclusiveness, and functionality of Ethiopia’s financial sector. It focuses on regulatory reform, institutional capacity building, and expanding access to finance—particularly for underserved communities and high-impact sectors such as agriculture and manufacturing.

The Cooperative Bank of Oromia, through its mobile platform Coopay e-Birr, has officially launched electricity bill payment services in collaboration with the Ethiopian Electric Utility (EEU)—unlocking new possibilities for rural inclusion and digital convenience.

This move comes as Ethiopia deepens its transition to digital service delivery. Getu Geremew, CEO of EEU reports that around 90% of its five million customers currently use digital payment methods. Until now, digital bill payments have primarily been facilitated by platforms such as Telebirr, Commercial Bank of Ethiopia, Awash Bank, and most recently, Safaricom. But EEU acknowledges that these platforms have struggled to effectively serve rural communities, where farmers often face challenges such as limited access, low trust, and limited digital literacy.

“We chose Coop Bank because of its dominance in the eastern and rural parts of the country,” explained Esayas Dendir, Marketing and Sales Executive Officer at EEU. “The majority of their customers are farmers. That’s a unique reach we didn’t have.”

Coopay e-Birr, with over 7 million users and a transaction volume exceeding 3 trillion birr, is a widely used mobile financial platform in Ethiopia. It facilitates payments for services including Ethiopian Airlines, water utilities, housing corporations, municipal services, and educational institutions.

The addition of electricity bill payments not only adds convenience for users but also promotes operational efficiency and national development goals. For EEU, digital payments minimize delays in fee collection and improve the financing of infrastructure projects. For Coop Bank, the move strengthens its positioning as a key player in digital financial inclusion.

“This isn’t just a new feature—it’s a grassroots shift,” said Derbe Asfaw, CEO of the Cooperative Bank of Oromia. “We’re bringing fintech to the doorsteps of farmers, daily laborers, and small traders who’ve long been excluded from Ethiopia’s digital transformation.”

He added, “We are driven by the belief that digital innovation can transform lives. This collaboration is another step toward building a financially empowered society.”

According to the EEU, efforts are underway to expand the digital payment system across various banks. “We are working to integrate multiple banks in partnership with EthSwitch,” said Getu Geremew.

In a bold stride toward digital economic transformation, Ethio Telecom has launched Zemen GEBEYA, Ethiopia’s first-ever national digital marketplace. This groundbreaking platform signals the country’s formal entry into e-commerce on a continental scale, with ambitions to redefine how businesses and consumers interact across Ethiopia’s diverse regions.

“Our legacy on African e-commerce is minimal due to the absence of a national platform,” remarked Frehiwot Tamiru, CEO of Ethio Telecom. “With Ethiopia being the second most populous country in Africa, Zemen GEBEYA is set to position us firmly on the digital commerce map of the continent.”

More than just a transactional space, Zemen GEBEYA is a full-fledged digital infrastructure. It aims to empower Micro, Small, and Medium Enterprises (MSMEs) by offering an inclusive, accessible online environment to scale their operations, reach new markets, and reduce overhead costs. From rural artisans to urban entrepreneurs, the marketplace is designed to democratize commerce and bring traditionally informal sectors into the digital economy.

Zemen GEBEYA’s launch builds on Ethio Telecom’s expansive digital ecosystem. With over 82.5 million telecom subscribers—45.7 million of whom use mobile broadband—and 33 million smartphone users, the groundwork for a thriving e-commerce platform is already in place. telebirr, the company’s mobile money service, boasts 52.5 million users and 7.5 million SuperApp users, having facilitated ETB 4.1 trillion in transactions to date, averaging ETB 7.6 billion daily.

These figures represent more than just technological access—they signal readiness. With 4G available in 835 cities and 5G already rolled out in 25, Ethio Telecom’s infrastructure is primed to support a national e-commerce revolution.

Zemen GEBEYA is offered as a mini app inside the telebirr SuperApp and includes a suite of integrated tools: a merchants’ portal and mobile app, consumer-facing interface, logistics management tools, a dispatcher app, and a system admin portal. This ecosystem is engineered to create smooth, transparent operations for buyers, sellers, and service providers.

Already, 42 businesses and logistics companies have joined the platform, showing early signs of momentum. Sellers can now manage inventories, reach customers directly, access digital payment tools, and benefit from marketing support—all within a centralized system.

Frehiwot emphasizes the platform’s security and credibility: “telebirr has never faced a security issue, and Zemen GEBEYA is built with the same robust infrastructure. Payments are only released to sellers once buyers confirm product satisfaction. Plus, with integration to the revenue authority, electronic tax receipts are recognized and compliant.”

One of the platform’s biggest value propositions is its role in formalizing Ethiopia’s vast, fragmented market system. For small producers, farmers, and artisans often locked into localized trade networks, Zemen GEBEYA opens a digital gateway to national and even global consumers.

The platform aligns with the goals of Digital Ethiopia 2025—promoting financial inclusion, digital literacy, and e-trade readiness. It’s expected to stimulate local production, encourage logistics innovation, and create jobs in both the digital and delivery sectors.

Zemen GEBEYA also promises real benefits for consumers. By cutting out intermediaries and enhancing price transparency, buyers can enjoy broader product access, reliable delivery, and competitive pricing. For underserved rural communities, this could mean access to goods and services once limited to urban centers.

Logistics providers, meanwhile, gain access to data-driven systems that can optimize routes and service quality. Ethio Telecom sees this as a key growth engine for both startups and established firms in the sector.

Cooperative Bank of Oromia took center stage at this week’s United Nations Global Compact conference in Kampala, representing the country at the 11th Africa Regional Forum on Sustainable Development. The bank participated in high-level discussions on accelerating progress toward the Sustainable Development Goals (SDGs) across the continent.

During the SDG Activation Day sessions, Coopbank executives detailed the institution’s pioneering work in sustainable finance before an audience of policymakers, development experts and business leaders from across Africa. The bank highlighted its innovative approaches to financial inclusion, digital transformation and climate-smart banking that are delivering measurable impacts in Ethiopian communities.

The forum provided a platform for Coopbank to demonstrate how commercial banks can drive progress on critical development priorities while maintaining financial viability. The bank shared case studies of its gender-focused lending programs, digital financial services expansion into rural areas, and green financing initiatives supporting climate adaptation.

The bank’s ability to align its core operations with SDG targets has emerged as a potential model for other African financial institutions seeking to balance profit and purpose.

The strong reception to Coopbank’s participation signals growing recognition of Ethiopia’s leadership in developing homegrown solutions to Africa’s sustainable development challenges. The bank’s presentation particularly resonated with delegates from countries facing similar financial inclusion and climate resilience hurdles. The bank’s appearance at this high-profile continental event marks an important milestone in Ethiopia’s financial sector gaining influence in pan-African policy discussions.

The forum outcomes are expected to shape regional cooperation on sustainable finance initiatives in the coming year, with Ethiopian institutions like Coopbank positioned to play an increasingly prominent role.

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