• Home
  • Business
  • M-Pesa Safaricom, Onafriq team up to foster Ethiopian remittances
Image

M-Pesa Safaricom, Onafriq team up to foster Ethiopian remittances

M-Pesa Safaricom has collaboated with Onafriq, Africa’s largest digital payments network, to streamline remittance flows into Ethiopia. The agreement will enable Ethiopians to receive money from abroad directly through M-Pesa, the popular mobile financial service that doesn’t require a traditional bank account.

This development comes as remittances to sub-Saharan Africa reached $54bn in 2023, an increase from the previous year, according to the World Bank. Ethiopia has seen particularly strong growth in remittance inflows.

While remittances play a vital role in poverty reduction and bolstering GDP, Ethiopia’s share remains relatively low. Ethiopian diaspora director general Mohammed Endris has stressed that remittances can comprise up to 40-50% of GDP in some countries, whereas Ethiopia’s diaspora remittances make up only 5%. Partnerships like this one aim to increase that percentage.

M-Pesa’s integration of international transfers taps into Onafriq’s expansive network, linking 500 million mobile money wallets and 200 million bank accounts for seamless cross-border transactions.

“Our goal is to make payments easier,” said Paul Kavavu, general manager at Safaricom Ethiopia. “Ethiopia generates over $5bn in remittances annually, and this partnership offers the diaspora a reliable channel to support loved ones.”

Nika Naghavi, head of growth at Onafriq, believes the move aligns with Ethiopia’s ‘Digital Ethiopia 2025’ strategy, which prioritises financial inclusion and digital innovation within the banking system.

“We believe payments should be simple and accessible,” said Naghavi. “This agreement extends our African reach and solidifies our position as the continent’s largest payment network, fostering economic growth and sustainable development.”

Related Posts

Ghana: Stanbic team holds discussions with Chinese Ambassador on Ghana China trade

The Chief Executive of Stanbic Bank Ghana, Kwamina Asomaning, along with several Senior Executives of the bank, convened…

Kenya: Jubilee Insurance FY 2023 net profit jumps 29% to Ksh. 439 million

Jubilee Health Insurance has announced a notable achievement, reporting a profit after tax of Ksh. 438 million for…

Titilayo Yetunde Olusanya adjudged Woman CFO of the Year for Public Sector

Mrs. Titilayo Yetunde Olusanya, Director of Finance Management and Control at the National Information Technology Development Agency (NITDA),…

Ghana: Guinness Breweries PLC introduces Learning for Life Program to promote inclusion

In collaboration with the Youth Employment Agency, the Ghana Tourism Authority, and the Diageo Bar Academy, Guinness Ghana…

Ghana: Kasapreko and GIZ aid Bonuama community with ambulance, water plant

In a collaborative effort between Kasapreko Company Limited and the German Development Cooperation, a state-of-the-art ambulance has been…

African Development Bank Opens new office in Yaoundé, Cameroon

The African Development Bank Group, has announced the opening of its newest office for Central Africa. The office…

Kenya: Mastercard and Equity Bank collaborate to enhance cross-border money transfers

Mastercard and Equity Bank have unveiled a strategic partnership aimed at facilitating safe and secure money transfers for…

Global: KFC Global to welcome Alex Barsk as it’s new CFO

KFC Global has unveiled Alex Barsk as its incoming Chief Financial Officer (CFO), to assume the role on…

FirstBank marks 130 years of banking resilience and excellence

The FirstBank Group, a prominent financial institution in Africa, recently commemorated its 130th anniversary. This milestone underscores its…