A newly released report by the GSMA has stated that Mobile money has the potential to contribute $5.3 billion to Ethiopia’s GDP.
The report, titled “Mobile Money in Ethiopia: Advancing financial inclusion and driving growth,” by the global association representing mobile operators, explores the potential for scaling mobile money in Ethiopia and the associated socio-economic benefits.
According to the report, by 2030, if mobile money achieves a high adoption rate with 60% of Ethiopian adults as users, it could help lift 700,000 people out of extreme poverty, add $5.3 billion to the country’s GDP, increase tax revenue by $300 million, and provide a safety net for nearly 40% of Ethiopian households during economic shocks.
However, the report emphasizes that the extent of mobile money adoption in Ethiopia depends on several enabling factors, including connectivity, affordability, digital literacy, interoperability, use cases, and policy.
telebirr, operational for two years, has already attracted 34 million users and facilitated transactions totaling 746 billion birr. In May 2023, Safaricom entered the mobile money market after obtaining a mobile money license, while Kacha is another market player that has already secured necessary permits.
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