Published on: March 20, 2024 12:11 (EAT)
A customer transacts at an M-Pesa agent shop. | FILE
Safaricom’s
M-Pesa has signed an international money transfer agreement with digital
payments network Onafriq to help streamline remittance flows to Ethiopia.
Under
the agreement, Safaricom customers in Ethiopia will receive remittances from
different parts of the world through M-Pesa, based on the authorisation the
company received in July 2023 from the National Bank of Ethiopia to start the
remittance service.
M‑Pesa allows Safaricom sim
card holders to transact through a mobile phone without the need for a bank
account and the incorporation of international money transfer into the service
allows it to tap into Onafriq’s extensive network.
With
operations in 40 African countries, Onafriq is Africa’s largest digital
payments network and its reach enables domestic and cross-border disbursements
and collections, card issuing and processing, agency banking, and treasury
services.
The
company says it connects 500 million mobile money wallets and 200 million bank
accounts.
“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, General Manager at
Safaricom Ethiopia.
Nika
Naghavi, Group Head of Growth at Onafriq, added; “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.”
The
service complements Ethiopia’s efforts to generate foreign currency inflow
through formal channels.
Safaricom
Ethiopia received a Payment Instrument Issuer License from the National Bank of
Ethiopia in May 2023 and went operational in August 2023.
