@SmartAfricaOrg – Ethiopian Business Review

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The African Development Bank Group and the Federal Government of Nigeria have signed a protocol agreement committing USD500 million over 15 years to extend the Nigeria Trust Fund (NTF), providing long-term business continuity and planning certainty through 2040.

This extension comes after multiple previous renewals, reflecting the enduring value and relevance of Nigeria’s partnership with the African Development Bank.

Dr Akinwunmi Adesina, President of the African Development Bank Group said that the commitment will allow the Bank’s ability to expand hybrid capital instruments, increase securitization, and scale up private sector operations. This move is expected to mobilize more private capital for low-income countries. “Nigeria’s decision today proves that Nigeria is always on the right side. The NTF is the largest we have at the African Development Bank, which is part of the Bank. It helps to co-finance operations in many countries, as well as feasibility studies for some other countries.” he added

The agreement also enables deployment of resources from the fund in innovative treasury, structuring, and other transactions, including balance sheet optimization, structured finance, and catalytic risk-sharing solutions.

The Bank and Nigerian authorities are working on new financial products, updating approval processes, and developing a communications strategy to raise visibility for Nigeria’s contributions.

The Nigeria Trust Fund serves as a fully-fledged financial window of the AfDB. Since its creation, the NTF has financed 92 projects in 33 countries. The Fund has played a crucial role in filling financing gaps in high-impact sectors, particularly in the continent’s least developed countries.

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 Ministry of Transport and Logistics, in partnership with Ethio telecom, has officially launched three national digital systems: the Cross-Country Public Transport Service System, the Integrated Fuel Supply System Solution, and the National Traffic Point-Based Penalty Management System.

These comprehensive platforms are designed to significantly enhance Ethiopia’s transport infrastructure, modernise public service delivery, and foster transparency across the fuel and traffic management chains.

The Cross-Country Public Transport Service System introduces a unified digital framework for managing bus ticketing, licensing, compliance, and payments. Travellers can now book and pay for tickets using their mobile phones, in multiple local languages including English, via platforms such as telebirr and other financial institutions. This solution is set to reduce delays, prevent fraud, improve data transparency, and enhance the overall efficiency of public transport nationwide.

The Integrated Fuel Supply System Solution enables fuel stations across the country to accept payments from all banks and wallets, offering real-time data integration for government oversight. By connecting all financial institutions with a central fuel management system, it improves market control, curbs illicit fuel trade, and ensures accountability from distribution to retail. Drivers can now refuel anywhere in Ethiopia using their preferred digital payment method.

The National Traffic Point-Based Penalty Management System digitises the enforcement of traffic laws, replacing outdated manual systems. It facilitates centralised recording of driver data, tracks infractions through a point-based mechanism, and streamlines penalty payments. This modern system is expected to promote safer roads, improve legal compliance, and support policymaking with reliable data. It also reduces the administrative burden on regional transport offices and supports integration via Ethio telecom’s TeleCloud without additional infrastructure investment.

Ethio telecom emphasised that the systems were developed by local private software developers and feature full API integration for interoperability with financial institutions.

AfDB Secures USD500 Million from Nigeria to Expand Development Fund Until 2040

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

Ethiopia Unveils Nationwide Digital Systems to Transform Transport, Fuel and Traffic Management