• Latest
  • Trending
Global mobile money accounts exceed 2 billion

Ethiopia raises mobile money capital to 100 million birr

May 28, 2025
MSport 2025

MSport 2025: Nigeria’s #1 Sports Betting Site, Powered by Chelsea & BVB

September 25, 2025
MNT-Halan introduces Egypt’s first secure lending solution via Halan App

MNT-Halan introduces Egypt’s first secure lending solution via Halan App

September 25, 2025
Visa, intella partner to boost MENA’s financial institutions with Arabic conversational AI

Visa, intella partner to boost MENA’s financial institutions with Arabic conversational AI

September 25, 2025
Airtel Africa invests in education with 100 scholarships and new tech hubs

Airtel Africa invests in education with 100 scholarships and new tech hubs

September 25, 2025
SINOTRUK enters Libya with Aseel Auto as exclusive distributor in Benghazi

SINOTRUK enters Libya with Aseel Auto as exclusive distributor in Benghazi

September 25, 2025
Tango Brook launches digital card for fuel management

Tango Brook launches digital card for fuel management

September 25, 2025
AI in Nigeria announces 3rd edition of InnovationAI

AI in Nigeria announces 3rd edition of InnovationAI

September 25, 2025
Interswitch Unveils Quickteller Travel to Transform African Travel Experience

Interswitch Unveils Quickteller Travel to Transform African Travel Experience

September 25, 2025
Alibaba, Nvidia collaborate to expedite humanoid robot development

Alibaba, Nvidia collaborate to expedite humanoid robot development

September 25, 2025
OpenAI expands $500 Stargate AI initiative in partnership with Oracle and SoftBank

OpenAI expands $500 Stargate AI initiative in partnership with Oracle and SoftBank

September 25, 2025
Your one-stop tech hub! Get the latest updates on AI, cybersecurity, fintech, and emerging technologies.
  • Tech News
    • Africa Tech
    • Global Tech
    • Tech with Pelumy
    • Tech Careers
    • Tech TV
    • General News
    • How To
    • Reviews
  • Cryptocurrency
  • Fintech
  • Startups
  • Ai
No Result
View All Result
  • Tech News
    • Africa Tech
    • Global Tech
    • Tech with Pelumy
    • Tech Careers
    • Tech TV
    • General News
    • How To
    • Reviews
  • Cryptocurrency
  • Fintech
  • Startups
  • Ai
No Result
View All Result
Techpression
No Result
View All Result
Home Business Fintech

Ethiopia raises mobile money capital to 100 million birr

Oluwatosin Adeyemi by Oluwatosin Adeyemi
May 28, 2025
149 1
0
Global mobile money accounts exceed 2 billion
465
SHARES
Share on FacebookShare on TwitterWhatsAppTelegram

Ethiopia’s National Bank (NBE) has doubled the minimum capital requirement for non-bank mobile money operators, in an effort to consolidate the rapidly expanding but fragmented digital finance industry.

The National Bank of Ethiopia (NBE) raised the minimum paid-up capital from 50 million birr to 100 million birr, rescinding its earlier directive on Payment Instrument Issuers (PIIs) in a memo dated May 12 and reaffirmed by the apex bank in a statement on Tuesday.

The requirement is effective immediately for current and potential PII—non-bank entities authorised to issue and manage electronic money.

Enhancing financial inclusion

The directive coincides with a nationwide explosion in mobile-based financial services, fuelled by government initiatives to increase financial inclusion and the quick expansion of wallet-based platforms. However, the industry has been characterised by unequal regulatory supervision, market concentration, and limited service provider interoperability—problems that the central bank seems keen to resolve.

RelatedPosts

Jumia, Watu Credit partner to enhance smartphone access with instalment payments in Kenya

PayU Kenya appoints liquidator following 6-year expansion drive with Cellulant

Orange Money welcomes Thierry Millet as new CEO

The goal of the updated capital threshold is to guarantee that issuers of payment instruments have the financial capacity to facilitate more secure operations and wider access.

The new directive’s requirement that all PIIs allow their users to send and receive money across competing digital wallets is one of its most important clauses. Closed-loop systems that gave powerful companies the ability to ringfence their networks and restrict consumer choice are now obsolete.

Wallet-to-wallet transfers must only be made via the national switch EthSwitch or other NBE-licensed operators starting in November 2025. Interoperability of any kind outside of these frameworks is specifically prohibited. It is anticipated that the action will dismantle the silos that have frequently prevented users of one platform from conducting smooth transactions with those of other platforms in Ethiopia’s mobile money market.

Revised transaction limits 

Additionally, the directive recalculates important operational parameters for digital wallets known as Level 2 accounts, which permit higher transaction ceilings in return for stronger customer identification.

Daily balances, person-to-person (P2P) transfers, and person-to-merchant (P2M) transactions are now subject to new restrictions. Although the central bank has not yet released precise The thresholds, specifically those implemented through Ethiopia’s standardised QR code system, are now subject to capped volumes.

With the exception of the capital requirement, which is already in place, PIIs have been given a six-month window to implement all requirements.

Development of non-bank mobile money operators in Ethiopia

In 2021, Ethiopia became one of the last major African economies to grant licences to non-bank mobile money operators. Since then, tens of millions of people have used services like Telebirr, run by state-owned Ethio Telecom, which has changed the way that remittances, savings, and payments are handled throughout the nation.

But the regulatory framework hasn’t been able to keep up with market innovation, which has led to worries about consumer protection, data privacy, and financial stability.

The most recent directive comes after a number of financial sector reforms in Ethiopia, such as initiatives to open banking services to foreign investment and the adoption of digital IDs to expedite customer onboarding and compliance.

According to industry analysts, the capital increase may discourage early-stage startups or smaller entrants, but it may also strengthen market discipline and lower systemic risks. It is anticipated that larger players, especially those already supported by telecom or banking behemoths, will quickly adjust.

However, by compelling dominant platforms to open up, the mandatory interoperability clause may help level the playing field for smaller businesses.

Key highlights of the reform

The directive seeks to guarantee fair competition and interoperability among mobile money issuers, enhance the safety, inclusivity, efficiency, and dependability of the digital payment ecosystem, and encourage the nationwide adoption of instant payments. The directive contains the following significant changes, among others:

• Increasing the daily electronic money balance to 150,000 Birr and the daily transaction limits to 300,000 Birr.

• Requires mobile money wallets to be interoperable with one another, facilitating smooth cross-platform fund transfers for increased user convenience.

• In order to guarantee quick transaction processing and advance financial inclusion, financial institutions are required to take part in the Ethiopian Instant Payment Systems (EIPS).

• Increasing to 100 million Birr the amount of capital needed to establish a Payment Instrument Issuer business.

Ethiopia Finance Forum 2025: Engagement to enhance financial inclusion

The National Bank of Ethiopia recently hosted the Finance Forum 2025, a two-day event held in Addis Ababa from May 15 to 16. To discuss the future of the nation’s financial sector, the forum brought together a wide range of participants, including academics, representatives of civil society, private sector leaders, policymakers, financial institutions, members of the Ethiopian diaspora, and development partners.

The Forum offered a crucial forum for discussing potential investments, encouraging cooperation, and reaching consensus on the direction of Ethiopia’s financial system. The main topic of discussion was how Ethiopia can improve its financial system even more to promote equitable growth and increase financial accessibility.

The Mastercard Foundation was one of the participants, sharing insights from its ongoing work to support micro, small, and medium-sized enterprises (MSMEs) in Ethiopia that are led by women and youth. The Foundation develops customised financial products and digital lending models in collaboration with financial institutions and fintech firms to expand financing access.

Participants in the Forum shared their experiences from programs funded by the Foundation. These initiatives seek to provide financial resources and business development services to underserved populations, especially women, young people, those with disabilities, and those living in rural areas.

SAFEE (Sustainable Access to Finance to Enable Entrepreneurship), a collaboration between Kifiya Financial Technologies and the Mastercard Foundation, is one such project. With the help of digital financial services, financial literacy education, and credit access tools, SAFEE aims to reach 2.18 million youth.

Numerous speakers at the forum pointed out that customised financial services, particularly those that use digital tools, can contribute to increased resilience and economic participation.

The importance of creating an inclusive financial system that supports the goals of women, young people, and individuals with disabilities was reaffirmed at the conclusion of Finance Forum 2025. The Mastercard Foundation is still dedicated to collaborating with various stakeholders to establish a supportive atmosphere for significant, long-lasting transformation in Ethiopia’s financial industry.

Tags: CapitalEthiopia Finance ForumEthiopia Finance Forum 2025Mobile Money
Oluwatosin Adeyemi

Oluwatosin Adeyemi

Oluwatosin Adeyemi is a seasoned writer with 5+ years of experience. He holds a degree in Animal Science from Olabisi Onabanjo University. A hardworking and creative individual with a passion for teamwork and self-improvement.

No Result
View All Result

Quick Links

  • Tech News
  • Cryptocurrency
  • Fintech
  • Startups
  • Business

Follow Us:

  • facebook
  • instagram
  • Twitter(X)
  • Linkedin
  • YouTube
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2025 Techpression.com -Techpression Media Limited

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

We are using cookies to give you the best experience on our website.

You can find out more about which cookies we are using or switch them off in .

No Result
View All Result
  • Home
  • Tech News
    • Africa Tech
    • Global Tech
    • Tech with Pelumy
    • Tech Careers
    • Reviews
    • How To
    • General News
  • Cryptocurrency
  • Business
  • Fintech
  • Startups
  • Featured
  • Ai
  • Tech TV

© 2025 Techpression.com -Techpression Media Limited

techpression.com
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

3rd Party Cookies

This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages.

Keeping this cookie enabled helps us to improve our website.