Ethiopia's fintech market is still emerging but shows promising potential for growth and innovation. The government has been taking steps to modernize the financial sector and promote digital financial services to improve financial inclusion. Home to more than 120 million people (making it the second most populous country in Africa), the country has many of the right ingredients to become Africa’s next big fintech giant. In addition to the country’s population size, it’s home to large numbers of unbanked people.
The Ethiopian government: Launched initiatives to promote digital transformation and innovation in the financial sector. The Digital Ethiopia 2025 Strategy aims to harness digital technologies to drive economic growth, improve service delivery, and enhance financial inclusion. Fintech is expected to play a crucial role in achieving these objectives.
Ethiopia’s Parliament approved the opening of digital financial services to foreign companies. The purpose of this new regulation is to expand financial services in geographic areas underserved by traditional banks, increase competition in the telecom industry, and facilitate the transfer of technology and knowledge.
While Ethiopia's fintech market is still in its early stages it holds significant promise for growth, development and transformation in the coming years. With supportive government policies that increase digital adoption as well as a young and tech-savvy population, Ethiopia can become a major fintech hub for the region and spur economic growth and financial inclusion.
The Ethiopian government has also made significant strides when it comes to developing policies that encourage the growth of a fintech ecosystem. One of the most significant such policies is the National Financial Inclusion Strategy.