@FintechAfrica – Ethiopian Business Review

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Ethiopia recorded a significant rebound in foreign direct investment (FDI) in 2024, attracting approximately US USD3.98 billion, a 21.9% increase compared to the previous year, according to the latest United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2025.

This growth positions Ethiopia as the leading FDI recipient in East Africa, a region that collectively attracted around USD8.5 billion in 2024, marking modest growth despite a challenging global environment characterized by an 11% decline in worldwide FDI flows.

Neighboring countries contributed to this regional investment landscape with Kenya drawing an estimated USD2.5 billion in FDI, Tanzania about USD1.1 billion, Uganda approximately USD0.7 billion, and Rwanda close to USD0.2 billion. These inflows reflect steady investor interest across sectors such as fintech, manufacturing, infrastructure, renewable energy, agribusiness, and technology.

Ethiopia’s surge is driven by reforms and investments targeting telecommunications, renewable energy, agribusiness, and logistics, marking a recovery after subdued inflows following its 2016/17 peak of USD4.12 billion.

The East African region showed resilience, with greenfield projects increasing by 32% and international project finance deals rising 38%, signaling confidence in new investments despite global FDI contractions.

Regional integration initiatives such as the East African Community (EAC) and the African Continental Free Trade Area (AfCFTA) remain vital in enhancing investment flows and fostering economic diversification across the region.

In a further boost to Ethiopia’s regional economic engagement, the Ministry of Trade and Regional Integration (MoTRI) recently convened a high-level validation workshop on the country’s National AfCFTA Implementation Strategy. The event brought together policymakers, private sector representatives, development partners, and trade experts to review the final draft of the strategy designed to guide Ethiopia’s active participation in the landmark continental trade agreement.

Fayda Wallet has officially launched in Ethiopia—marking a critical step toward nationwide adoption of biometric-based digital ID and financial access.

Co-developed with technology support from TECH5 and Visa, the Fayda Wallet allows citizens to download the official app and instantly request a digital version of their Fayda ID credential. The system is designed to eliminate paperwork and streamline access to both public and private digital services.

The Cooperative Bank of Oromia (Coopbank) has become the first bank to adopt the Fayda Wallet, enabling customers to open new accounts seamlessly using biometric eKYC verification, without the need for physical documents.

The initiative aligns with Ethiopia’s Digital 2025 Strategy and the Homegrown Economic Reform Agenda, both of which emphasize digital identity as a foundational enabler for financial inclusion and public service access.

With secure biometric verification at its core, the platform strengthens trust while simplifying processes for underserved and unbanked populations.

The Ethiopia Finance Forum 2025 officially kicked off this morning at the Ethiopia Museum of Art and Science, bringing together a diverse array of stakeholders from the financial sector, senior government officials and global industry leaders. The two-day event, hosted by the National Bank of Ethiopia (NBE), is set to feature over 150 financial institutions, policymakers, development partners, and industry leaders.

The opening ceremony was marked by the presence of President Taye Atske Selassie and Mamo Mihretu, Governor of the National Bank of Ethiopia, both of whom underscored the forum’s significance in charting a new course for the country’s financial landscape.

In a historic announcement, Governor Mamo revealed that government borrowing from the National Bank has dropped to zero for the first time in 12 years. He recalled that Ethiopia’s financial sector has faced numerous challenges, including high inflation and severe foreign currency shortages. To address these issues, he said, the country has embarked on a comprehensive macroeconomic reform agenda.

Governor Mamo noted that efforts to realize the macroeconomic reform vision have already yielded results, including easing the foreign currency crunch and laying the groundwork for a stronger private financial sector.

He added that the reform has helped make Ethiopia’s financial system more competitive, market-oriented, and digitized, with improved security and efficiency.

PresidentTaye Atsikaselasi, in his remarks, praised the NBE’s leadership in fostering economic reform and encouraged deeper collaboration between regulators, investors, and citizens to support sustainable financial development. He also recommended three critical need for Ethiopia’s financial sector to broaden its client base and geographic reach, lead the nation’s digital transformation, and promote financial inclusivity to sustain growth.

The Ethiopia Finance Forum 2025 continues tomorrow with breakout sessions, panel discussions, and networking events. Participants are expected to deliberate on fintech innovation, public-private partnerships, ESG finance, and regional financial integration.

In a move signaling broader participation in Ethiopia’s liberalizing digital fuel payment ecosystem, Dashen Bank has launched a seamless fuel payment feature through its Super App, becoming the latest entrant to challenge the long-standing dominance of state-backed platforms.

For nearly two years, Telebirr, along with digital wallets from the Commercial Bank of Ethiopia (CBE) and the Cooperative Bank of Oromia (COOP), served as the primary—and for a time, exclusive—channels for fuel payments in the country. However, Ethiopia’s fuel payment landscape is shifting under the weight of digital reform and policy liberalization.

The April 2023 national fuel reform, initiated by the Ministry of Transport and Logistics, marked a turning point. Aimed at digitalizing the sector using cutting-edge technologies, the reform has driven major cost savings and transaction efficiency. According to State Minister Bareo Hassan, the digital framework has already enabled over ETB 430 billion in digital transactions and saved the country more than ETB 190 billion in costs.

“But this wasn’t a complete success,” Bareo acknowledged, noting that participation has remained limited to only a few players.

To address this bottleneck, Ministry of Transport and Logistics has been working on a grand digital fuel payment integration platform, in collaboration with Ethio Telecom and the Ministry of Innovation and Technology. The initiative invites broader banking sector participation—a call Dashen Bank has now answered.

The state minister welcomed Dashen Bank’s quick uptake of the initiative, hailing it as a sign of the private sector’s growing alignment with Ethiopia’s digital transformation agenda.

At a press briefing, Ayele Teshome, Dashen Bank CEO Representative, announced that customers can now pay for fuel at selected stations in just three clicks using the Dashen Super App. The bank plans to roll out the service nationwide in the coming weeks.

“Our fast and secure fuel payment feature allows customers to log in, select the fuel payment mini app, and scan a QR code to complete the transaction instantly,” said Ayele.

This service not only simplifies the consumer experience but also enhances operational efficiency for gas stations and offers new oversight capabilities for government regulators. Dashen’s mini app—nested within its flagship Super App—enables users to fill out a simple form and pay without friction, helping to modernize one of the country’s most essential consumer transactions.

Oromia Bank, in collaboration with the Ministry of Transport and Logistics, has implemented a technology that allows easy payment of fuel bills through the Milki digital financing application.

Following the implementation of the new Milki digital financing application by Oromia Bank, a grand launch event was held in the presence of senior officials of the Ministry of Transport and Logistics and relevant stakeholders.

In his message at the launch event, the CEO, Teferi Mekonnen, said Our bank is implementing a wide range of activities to support the digital payment strategic plan of our country Ethiopia, especially those that reduce cash circulation and promote digital payment services and transactions; Obo Teferi, who said that large-scale works supported by technology are being carried out, said that the work of digitizing fuel transactions through the Milki app that we are announcing today is a significant example.

The Director of the Fuel Subsidy Project Office of the Ministry of Transport and Logistics, Selman Mohammed, said; The steps taken by Oromia Bank to modernize the fuel transaction system by understanding the comprehensive digitalization plan of the government is commendable. He further called on the bank to continue its digitalization work in other sectors.

Among the partners of Oromia Bank who attended the program; Dr. Yusuf Elmali, General Manager of Oil Libya Ethiopia, said that the application developed by Oromia Bank is convenient for fuel transactions, and that the technology will modernize fuel transactions.

In a message sent by the Chairman of the Board of Directors of Oromia Bank, Dr. Assefa Sime, he said that Oromia Bank is working on a multi-faceted digitalization project, which is bearing fruit. He urged that this comprehensive digitalization work continue to be strengthened.

According to the Bank, Oromia Bank is the first bank to implement a system that allows customers to obtain loans even if they do not have money in their account, including making fuel payments, by launching the Milky Digital Financing application on the application developed by the Ministry of Transport and Logistics to modernize fuel transactions.

Yodahe Arayasalassi, Director of the Ethiopian National ID Program, has been recognized by San Francisco-based Okta as one of 25 global leaders in digital identity. The recognition highlights his pivotal role in shaping Ethiopia’s national identification system, which has already registered over 13 million citizens.

Under Arayasalassi’s leadership, the Ethiopian National ID Program is set to reach 70 million citizens by 2025, providing Ethiopians with secure, accessible, and reliable digital identity solutions. This initiative is a crucial part of the country’s efforts to enhance governance, improve service delivery, and promote financial inclusion.

In a statement shared by Okta, the company emphasized how digital identity has become a cornerstone of global security, particularly in the wake of the pandemic. With the rapid digital expansion, the need for secure digital identities has never been more critical. Okta’s recognition of Arayasalassi underscores the transformative role Ethiopia is playing in the global digital identity landscape.

Okta’s annual Identity 25 honors individuals who have made significant contributions to securing and evolving digital identity systems. The initiative aims to highlight the leaders who are shaping the future of identity, protecting personal data, and ensuring digital inclusivity for all.

The Commercial Bank of Ethiopia (CBE), in collaboration with global payment leader MasterCard, has introduced both plastic and virtual international prepaid cards, a move set to enhance digital payment accessibility in Ethiopia.

The launch, officiated by CBE President Abe Sano and MasterCard Africa President Mark Elliott, marks a major step toward modernizing Ethiopia’s financial ecosystem. These prepaid cards will enable users to conduct international transactions with greater convenience, supporting online purchases, travel expenses, and cross-border payments.

CBE officials emphasized that the initiative aligns with the bank’s ongoing efforts to expand digital financial services and provide customers with secure, flexible, and globally accepted payment solutions. The virtual card, in particular, is expected to cater to the rising demand for secure online transactions, while the plastic version offers a physical alternative for international spending.

In a groundbreaking collaboration, Global Bank Ethiopia, Lucy Insurance S.C., and Kacha Digital Financial Services have launched “Agar,” Ethiopia’s first digital insurance and loan service, marking a transformative step in the country’s financial sector. Tailored to meet the needs of insurance customers, meter taxi drivers, and salaried employees, this innovative service offers digital loan and savings solutions, effectively breaking the barriers posed by traditional insurance models.

Historically, the Ethiopian insurance sector has been anchored in cumbersome paperwork and rigid documentation systems, limiting its reach and growth. Many potential clients, particularly those viewing insurance as a luxury, have been hesitant to engage with traditional services. Adefris Wesen, CEO of Lucy Insurance, acknowledges this limitation, emphasizing, “The traditional insurance system inhibited the sector’s growth, reflected in its minimal contribution to the country’s GDP.” With the advent of “Agar,” however, digitalization is set to revolutionize service delivery, enhance accessibility, and bolster the sector’s contribution to the nation’s economy.

In line with Ethiopia’s ambitious Digital 2025 initiative, the National Bank of Ethiopia (NBE) has been instrumental in promoting digital financial services. Hailemariam, Advisor to the Deputy Governor of NBE, highlights the pivotal role digital finance plays in fostering financial inclusion, adding, “This partnership will contribute to Ethiopia’s Digital 2025 initiative and enhance accessibility, while ensuring accountability, cybersecurity, and consumer protection.”

“Agar Digital Insurance” stands as Ethiopia’s first insure-tech product, allowing users to seamlessly purchase insurance via mobile phones without the need for branch visits. By eliminating paperwork, the service offers a hassle-free digital experience. Available through the Kacha mobile app, it not only enables users to purchase insurance but also provides digital loans to ease premium payments. Customers can opt for flexible repayment schedules, from 1 to 9 months, ensuring uninterrupted coverage even during financial challenges.

In addition, two new services were unveiled today: Agar for Drivers, which offers meter taxi drivers quick access to digital loans for urgent vehicle repairs or expenses, and Agar for Salaried Employees, a salary advance loan service that allows employees to access a portion of their salary before payday without collateral.

This dynamic, digital-first approach is poised to make insurance and financial services more accessible, affordable, and efficient, propelling Ethiopia’s financial sector into a new era of innovation and inclusion.

Ethiopia’s FDI Surges Nearly 22% to USD4 Billion in 2024, Leading East Africa’s Investment Recovery

Fayda Wallet Launches in Ethiopia, Ushering in a New Era of Biometric Banking

Ethiopia Finance Forum 2025 Opens with Zero Borrowing Milestone

Dashen Bank Joins Ethiopia’s Expanding Digital Fuel Payment Frontier as Sector Opens Up

Oromia Bank and Ministry Partner to Digitise Fuel Payments

Ethiopia’s Digital ID Chief Named Among World’s Top 25 Identity Leaders by Okta

CBE and MasterCard Launch International Prepaid Cards

Agar Takes Insurance to the Heart of Every Ethiopian Home