At an event at Dynamic MFI’s offices, the cooperation was formally endorsed by the National Bank of Ethiopia after all regulatory conditions were successfully fulfilled.
This partnership, announced on Tuesday, demonstrates a common dedication to using innovation and strategic integration to modernise Ethiopia’s financial services environment.
In a landmark move to modernise Ethiopia’s financial landscape, Dynamic Microfinance Institution S.C. (DMFI) and Kacha Digital Financial Service S.C., the nation’s first privately licensed mobile money provider, have formed a strategic partnership aimed at promoting financial inclusion.
The agreement, officially endorsed by the National Bank of Ethiopia following regulatory approval, was unveiled at an event hosted at Dynamic MFI’s headquarters on Tuesday.
What the partnership intends to achieve
The project intends to increase access to reasonably priced financial services and digitise microfinance offers, especially for marginalised groups in rural and isolated areas.
The collaboration improves convenience and equity in the provision of financial services via mobile-based platforms by doing away with the necessity for in-person branch visits.
Launch of mobile app
Kacha Digital Financial Service S.C. and Dynamic Microfinance Institution S.C. have launched a co-branded, white-label mobile app and USSD interface as part of their partnership.
These services include a variety of goal-oriented digital savings accounts, savings-backed lending, payday loans, SME financing, agricultural loans, device financing, and numerous other Buy Now, Pay Later (BNPL) options.
The daily financial requirements of a wide range of clients from various economic sectors and income levels are catered for by these products.
“Our mission is to transform the delivery of financial services to underserved communities by leveraging digital technology,” said Ato Bewketu Alamrew , CEO of Dynamic Microfinance Institution S.C.”
Ato Bewketu Alamrew further explained, “This partnership with Kacha enables us to extend our reach to last-mile users in remote and rural areas, unlocking new gateways for inclusive service delivery. By embracing digital platforms, we empower our customers to transition seamlessly into the digital economy, paving the way for greater scalability and meaningful impact”.
Ato Abreham Tilahun, CEO of Kacha Digital Financial Service S.C., emphasised the strategic value of the collaboration: “This partnership represents a paradigm shift in microfinance service delivery—harnessing technology to enhance accessibility, streamline operations, and significantly reduce costs associated with conventional models. It exemplifies how inclusive finance can reach those previously excluded from formal financial systems.”
Co-branded mobile app on Google Play Store
The Google Play Store now offers the co-branded mobile application for download. Customers can currently use the Kacha’s USSD platform to access Dynamic’s services, even though Dynamic’s exclusive USSD services will soon be available.
After downloading the Dynamic microfinance app, customers may monitor their accounts, save, deposit, transfer, borrow, and digitally onboard without ever having to visit a bank.
About Dynamic Microfinance Institution S.C
Founded in 2009 and licensed by the National Bank of Ethiopia, Dynamic Microfinance Institution S.C. (DMFI) is a private share company with more than 400 shareholders.
It offers low-income people, particularly women and young people, inclusive financial and non-financial services through its 28 branches in Addis Ababa, Oromia, and Amhara.
With an emphasis on poverty alleviation and financial inclusion, DMFI has increased its capital from ETB 2 million to 500 million in just 15 years.
About Kacha Digital Financial Service S.C
With a license from the National Bank of Ethiopia, Kacha Digital Financial Service S.C. is the country’s first private mobile money provider.
Kacha provides a broad range of easily accessible digital financial services, such as opening a wallet account, digital savings and loan products, payments, insurance, inward remittances, and more, through strategic alliances with banks, microfinance organisations, SACCOs, and insurance firms.
Via the USSD code *677# or by installing the Kacha app from the Play Store or App Store, users can access its services on both the Safaricom and Ethio Telecom networks.