M-PESA Ethiopia and Onafriq seal deal for international transfers

M-PESA Ethiopia

M-PESA Safaricom signed an International Money Transfer Agreement with Onafriq, one of Africa’s digital payments networks (operating in 40 countries), to streamline remittance flows to Ethiopia.

M-PESA offers mobile financial services. Users only need a Safaricom SIM card, not a bank account. The agreement allows Ethiopians to receive remittances from around the world through M-PESA, following authorization from the National Bank of Ethiopia in July 2023.

The World Bank reported that sub-Saharan Africa received $54 billion in remittances in 2023, an increase from the previous year. This rise was driven by strong growth in Mozambique, Rwanda, and Ethiopia.

This increase is a step forward, but more needs to be done. Remittances are vital in reducing poverty and boosting a country’s GDP. Ethiopia’s Director General of the Ethiopian Diaspora noted this, stating that remittances can contribute significantly to GDP (up to 40-50% in some countries), while Ethiopia receives only 5% from its diaspora. Partnerships like this one can help increase that figure.

By adding international money transfers, M-PESA can leverage Onafriq’s network, connecting millions of mobile money wallets and bank accounts. This vast reach enables various financial services like domestic and international payments, card services, and agency banking.

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