Kenya: Dahabshiil, M-Pesa Ethiopia sign deal for diaspora money transfers

African money transfer company Dahabshiil and M-Pesa Safaricom-Ethiopia have formed a partnership to enable the Ethiopian diaspora to send funds directly to M-Pesa mobile wallets.

Signed in Addis Ababa, this agreement aims to simplify the remittance process, making it easier and faster for the Ethiopian diaspora to transfer money securely to their homeland.

In signing the deal, Dahabshiil said in a statement:” We are delighted we have partnered with Safaricom’s M-Pesa Ethiopia, giving our diaspora customers another channel to send money there, further enabling them to support their loved ones. We are a leading provider of foreign currency to all major banks in the country.”Ethiopia’s country representative for Dahabshiil, Musse Mohamed said.

He said the partnership allows the company to fulfil its mission of delivering accessible and reliable financial services, by leveraging M-Pesa’s growing customer base.

“Together, we are making it easier and safer for Ethiopians abroad to support their families back home,” Mohamed affirmed.

M-Pesa Safaricom’s acting chief digital financial services officer, Anthony Kangethe, said: “We are delighted to partner with Dahabshiil, a leading player in international money transfers. Together, we share a vision of financial inclusion and driving economic development.”

The new service, he noted, will provide Ethiopians with a secure and convenient method for sending and receiving money, thereby empowering individuals and families.

The two companies have pledged to promote financial inclusion and economic growth in Ethiopia, highlighting that this partnership underscores their dedication to innovation and exceptional customer service.

Dahabshiil, operating in over 100 countries worldwide, has been a pivotal player in African remittances, offering a platform for the diaspora community.

Conversely, M-Pesa provides swift and easy financial services through mobile phones, ensuring accessibility for individuals.

According to the World Bank, remittance flows to sub-Saharan Africa reached $54 billion (Sh6.98 trillion) in 2023, marking an increase from the previous year.

This rise was fueled by robust remittance growth in countries such as Mozambique, Rwanda, Kenya, and Ethiopia.

The signing of the agreement between Dahabshiil and M-Pesa strengthens the commitments made by the Kenyan and Ethiopian leaders, following Ethiopian Prime Minister Abiy Ahmed’s state visit to Kenya in February this year.