Kenyan mobile network giant Safaricom, in collaboration with fintech firm Onafriq, has announced a strategic partnership to facilitate seamless remittance flows into Ethiopia. This deal will significantly boost financial inclusion in Ethiopia while enhancing convenience for members of the Ethiopian diaspora sending money back home.
The Safaricom-Onafriq partnership has the potential to transform Ethiopia’s remittance landscape. Remittances are a crucial lifeline for many Ethiopian households, and this tie-up will provide millions of Ethiopians with greater accessibility to funds sent from abroad. The deal arrives as Ethiopia continues to see a steady increase in remittance inflows.
Through M-pesa, Safaricom’s mobile money service, individuals in Ethiopia will be able to receive remittances from different parts of the world based on the authorization received from the National Bank of Ethiopia to start the remittance service in July 2023.
“Our goal is to make payments easier, and the incorporation of International Money Transfer services into M-PESA serves that purpose perfectly. Ethiopia generates more than five billion USD in remittances annually and this partnership will provide the Ethiopian Diaspora with an easy and fast formal channel to send money to their loved ones in Ethiopia,” said Paul Kavavu, Safaricom Ethiopia General Manager.
Safaricom will leverage Onafriq’s extensive network which connects 500 million mobile money wallets and 200 million bank accounts.
“We have always believed that payments should be a simple process, as simple as a phone call – connecting individuals through increased access. The agreement with M-PESA Safaricom extends our reach in Africa even further and strengthens our position as the largest payment network on the continent. We are confident that this partnership will positively impact economic growth and the achievement of greater sustainable development goals,” added Nika Naghavi, Onafriq Group Head of Growth.
