@TechInAfrica – 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.

NIB Bank and Arifpay Financial Technologies have launched a strategic partnership aimed at expanding access to digital payment systems across Ethiopia. The collaboration brings together NIB Bank’s extensive financial infrastructure and Arifpay’s growing fintech capabilities to deliver a range of integrated solutions that cater to the evolving needs of businesses and merchants.

Central to the partnership is a commitment to improving how transactions are made and managed, particularly for small and medium-sized enterprises (SMEs), retail merchants, and service providers seeking greater efficiency and flexibility in their day-to-day operations.

One of the key offerings is the deployment of mobile and smart point-of-sale (POS) devices, allowing merchants to accept card payments, including Visa, Mastercard, and UnionPay. This capability is expected to improve transaction security and boost foreign currency inflows by attracting more international customers and formalizing previously cash-based businesses.

The agreement also includes the rollout of a secure digital Payment Gateway to support Ethiopia’s growing e-commerce sector. The gateway is designed to facilitate online payments for businesses operating in the digital space, offering a locally managed, real-time transaction platform that enhances reliability and customer trust. As part of the rollout, merchants will also have access to a free e-commerce platform, integrated directly through Arifpay’s gateway.

“With this partnership, NIB Bank’s customers can access these all-inclusive payment solutions,” said Rediet Tsigeberhan, CEO of Arifpay. “Moreover, a free e-commerce platform for merchants through our payment gateway will further empower businesses. Teaming up with NIB Bank allows us to scale our fintech innovations nationwide and work with a larger, more inclusive, and digitally empowered economy.”

Complementing these tools is a merchant-focused mobile application that allows vendors to accept payments, manage transactions, and access real-time analytics from their smartphones. The app supports businesses in better monitoring cash flow, understanding customer behavior, and making data-driven decisions.

Additionally, the “Super Merchant” model introduced through this partnership will allow NIB Bank to integrate Arifpay’s interoperable technologies into its existing digital services. The model is intended to simplify onboarding processes for new merchants, expand access to digital financial tools, and further modernize the bank’s retail offerings.

Henok Kebede, CEO of NIB Bank, said the partnership reflects the bank’s strategic direction toward becoming a leader in digital financial services. “By combining our infrastructure with Arifpay’s technology, we are positioned to deliver practical, customer-focused solutions that support business growth and financial inclusion,” he said.

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.

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

NIB Bank and Arifpay Roll Out Integrated Payment Solutions Targeting Businesses and Merchants

Oromia Bank and Ministry Partner to Digitise Fuel Payments

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