Kacha Digital Financial Services S.C has officially become the first private firm to receive a mobile money license from the National Bank of Ethiopia.
Kacha registered with a subscribed capital of birr 200 million; its license marks the beginning of a new era for broader participation of the private sector in the national digital financial services landscape.
The establishment of Kacha took three and a half years and was led by Ethiopian developers along with international experts.
The Kacha mobile money platform intends to unlock possibilities for users by providing access to affordable, convenient, and secure digital financial services that drive sustainable growth, enhance access to finance, and improve citizens’ livelihoods.
Kacha mobile money platform will be able to provide cashless transactions through more than 30,000 agent networks in the width and breadth of the country.
The services include the opening of wallet accounts, cash-in, cash-out, micro saving, uncollateralized micro credits, micro insurance, direct payments, bill payments, international remittance, fund transfer, airtime top-up, card payments, and other innovative services.
Kacha is the brainchild of Angesom Teklay, who is the founder and main power behind Kacha. Angesom is a young serial entrepreneur who has invested in several startups, such as Hulugram, a multi-purpose messaging app that is built on top of Telegram.
He has also founded multiple tech startups across Africa, such as Linknet, an internet service provider, and Aidu, a firm that works in ICT (Telecom) Infrastructure, software development and maintenance, and Information Systems Solutions.
The mobile money platform that was developed locally has 13 shareholders. Among them is Tewodros Ashenafi, Founder and Chairman of SouthWest Holdings Ltd., an Ethiopian holding company, and Chairman of Ambo Mineral Water. HST Consulting Plc, co-founder Haile Leul Tamiru is also on Kacha’s shareholder list.
The National Bank of Ethiopia has also approved the appointment of seven board of directors and the appointment of Abraham Tilahun as founding Chief Executive Officer of Kacha Digital Financial Service.
Kacha is also scheduled to have an introductory event with the financial service sector players, partners, and stakeholders on July 28, 2022, at Skylight Hotel.
The state-owned Ethio Telecom is the pioneer to acquire a mobile money license from National Bank and Telebirr was the only mobile money platform by a non-financial institution until now.
As of July 19, 2022, the telebirr digital payment platform had transacted 25 billion Birr worth of electronic money and has over 21 million subscribers, 89 master agents, over 73 thousand agents, and over 21,000 merchants.