Ethiopia Launches National Digital Payments Strategy, IPS

Addis Ababa, December 9, 2025 (ENA) – Ethiopia's National Digital Payment Strategy (NDPS 2026–2030) and Instant Payment System (IPS) launched today.

The Instant Payment System, and the National Digital Payment Strategy 2030, which charts a five-year road map for interoperability, trust, and innovation in Ethiopia’s digital finance landscape, were launched at the second Ethiopia Digital Payment Conference taking place in Addis Ababa.

 

 

National Digital Payments Strategy (2026–2030) plans to enable low-value outbound cross-border transfers via cards, mobile wallets, and digital banking.

The updated strategy aims to expand digital payment adoption, upgrade financial infrastructure, and reduce barriers for underserved groups. It builds on rapid growth in Ethiopia’s digital finance sector.

Whereas, the launch of Ethiopay, an instant payment system developed by EthSwitch, the national switch operator, provides a secure and interoperable infrastructure for person-to-person transfers, QR payments, bulk payments, and cross-border transactions, forming the backbone of Ethiopia’s digital payment ecosystem.

 

 

The digital payment conference brought together senior government officials, including Deputy Prime Minister (DPM) Temesgen Tiruneh, policymakers, regulators, banks, high tech innovators and development partners to accelerate Ethiopia’s journey toward a digital, inclusive, and cash-lite economy.

In his opening remarks, DPM Temesgen Tiruneh said advancing technological access can foster economic growth and improve the lives of citizens.

Ethiopia, through steady reform, has laid the groundwork for a modern digital economy, Temesgen said.

in this regard ,Ethiopia, in recent years, has made real and measurable progress, he added, noting that the country has expanded access to digital financial services at a remarkable pace.

With the successful implementation of the Digital Ethiopia 2025 strategy, the country has now launched the ambitious Digital Ethiopia 2030 initiative.

This new strategy aims to deepen digital transformation within economic, governance, and societal frameworks.

Ethiopia's journey toward a robust digital landscape continues, with a focus on leveraging technology to drive shared prosperity and improve everyday lives, Temesgen underlined.

He underscored that millions of Ethiopians are now utilizing digital economy thanks to increased access to digital financial services.

"Our investment in digital public infrastructure has been central to this transformation," he noted, revealing that Ethiopia processes over 18.5 trillion Birr in transactions annually.

Key services such as utility payments have transitioned to digital platforms, facilitated by the entry of Safaricom Ethiopia and improvements in internet connectivity.

Temesgen also underscored the importance of the National Digital ID, Fayda, which provides millions of citizens with a reliable way to access services.

Integration across various sectors has made this ID a crucial component of Ethiopia’s digital ecosystem.

Government initiatives, such as the e-Gov Service and MESOB, now offer hundreds of services online, thus enhancing transparency and efficiency.

However, Temesgen noted that challenges remain, particularly in ensuring digital services reach underserved populations.

"There are gaps in usage between urban and rural communities and between genders. Many still lack trust in digital systems," he admitted.

Despite these challenges, he expressed optimism about the future.

Temesgen called on all stakeholders—financial institutions, innovators, academia, and development partners—to collaborate in building a more inclusive digital economy.

He stressed the need for strong consumer protection measures and the importance of fostering innovation tailored to the needs of Ethiopians.

"Let us work together to build a future where every Ethiopian can fully engage in the digital economy," he asserted, encouraging a collective effort to create opportunities that uplift agriculture, support women and youth, and stimulate overall economic growth.

In his part, the National Bank of Ethiopia Governor, Eyob Tekalign, emphasized the significant advancements in digital transformation within Ethiopia and across Africa.

Noting the rapid adoption of digital payment systems and the potential they hold for economic growth, Eyob acknowledged that Ethiopia, like many emerging economies, is experiencing a remarkable digital transformation.

 

 

"The rapid evolution of technology is raising the demand for financial services," he said, highlighting the ongoing investments in digital infrastructure that are spurring innovation.

He pointed out that digital transactions in Ethiopia have soared dramatically,   marking a historic shift in the country’s transaction landscape.

Ongoing enhancements to the national payment infrastructure are improving efficiency and security while laying the groundwork for a robust digital financial system.

"Ethiopia is increasingly being recognized as a burgeoning market with immense digital potential," he noted.

Despite these achievements, Eyob acknowledged persistent challenges, including gender disparities in access to technology, limited emergency services, and rising cybersecurity risks.

Underscoring the importance of collaboration between the public and private sectors in addressing these issues, the Governor added that the National Digital Payment Strategy (2026-2030) will foster inclusivity in financial services and promote innovation.

The new strategy involves   establishing a safe and trusted digital payment system, enhancing gender inclusivity in financial service design, and creating interoperable systems that facilitate cross-border payments, Eyob said.

Additionally, the strategy will support the establishment of a National Data Exchange and expand access to essential services.