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In a significant policy shift aimed at accelerating its digital economy agenda, Ethiopia has mandated that all government offices must accept electronic payments from all licensed service providers—marking a pivotal step in the country’s digital transformation journey.
The directive, issued by the Ministry of Revenues, transitions digital payment adoption across public services from optional to mandatory, effectively operationalising a critical component of the government’s “Digital Ethiopia 2025”strategy. Under the new mandate, government institutions at all levels are required to integrate and accept digital payments from any licensed provider within 90 days.
Until now, most electronic transactions within government services were funneled through Telebirr, a state-owned mobile money platform operated by Ethio Telecom. While Telebirr has achieved significant scale—boasting over 51 million users and processing trillions of birr in transactions annually—its dominance raised concerns over market concentration and limited consumer choice.
The latest directive aims to correct these imbalances by fostering a competitive, interoperable digital payments environment. By removing exclusive reliance on a single platform, the government is creating space for banks, fintech startups, and mobile money operators to offer services across the public sector, unlocking new opportunities for innovation and service efficiency.
According to the Ministry, this move is expected to reduce cash handling risks, lower operational costs, and enhance transparency through auditable digital payment trails—an essential tool in the fight against corruption.
The decision also reflects Ethiopia’s broader commitment to expanding digital financial inclusion. Launched in 2020, the Digital Ethiopia 2025 roadmap prioritised the digitisation of over 130 public services and sought to modernise the country’s financial ecosystem. This enforcement push represents a concrete implementation of that vision.
For Ethiopia’s growing fintech industry, the mandate provides regulatory clarity and access to a critical market segment: public service payments. It is also aligned with reforms spearheaded by the National Bank of Ethiopia, which has been working to strengthen digital payments regulation, enhance interoperability frameworks, and drive greater financial inclusion.
Ultimately, Ethiopia’s new policy signals a firm commitment to digital transformation and underscores the role of inclusive fintech ecosystems in shaping the future of governance, public service delivery, and economic growth across Africa.
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