M-PESA Now Supports Cross-Border Transfers Between Kenya and Ethiopia

Safaricom has expanded its M-PESA Global service to Ethiopia, allowing seamless cross-border money transfers between the two countries. This move strengthens financial integration within East Africa, enhances digital payments, and opens new opportunities for both individuals and businesses across the region.

A Strategic Collaboration: Kenya Meets Ethiopia

The collaboration between Safaricom Kenya and Safaricom Ethiopia enables customers in both countries to send and receive money using their M-PESA wallets. Through this integration, Safaricom aims to simplify international money transfers, making them more accessible, efficient, and cost-effective.

According to Esther Waititu, Safaricom Kenya’s Chief Financial Services Officer, the initiative aligns with the company’s broader strategy of offering innovative financial solutions. She emphasized that accessible cross-border transactions empower individuals and businesses, driving economic growth across the region.

In Ethiopia, the initiative is particularly timely due to recent foreign exchange policy reforms introduced by the National Bank of Ethiopia (NBE). These reforms encourage greater adoption of digital payments by businesses and the diaspora. Elsa Muzzolini, Chief Financial Services Officer of Safaricom Ethiopia, expressed optimism about the partnership, noting it will encourage regional adoption of digital payments and provide a secure, affordable way to transfer money between the two nations.

Impact on Individuals and Businesses

This new capability benefits several groups:

• Ethiopians living in Kenya and Kenyans working in Ethiopia now have a straightforward way to send and receive money.
• Small businesses and entrepreneurs operating across both countries can leverage the service for smooth financial transactions.
• The integration also supports the growing Ethiopian diaspora, providing a fast and reliable option to send money back home to fund operations or support families.

This cross-border service not only strengthens Kenya-Ethiopia financial ties but also feeds into Safaricom’s broader vision of regional economic integration through digital payments.

M-PESA: Scaling Digital Payments Globally

With this expansion, M-PESA customers in Kenya and Ethiopia join a vast international network. M-PESA Global allows transactions to over 190 countries, making it a critical platform for individuals and businesses engaging in cross-border trade. The ease of access and flexibility of mobile money solutions position M-PESA as a leading financial tool for international remittances, particularly in regions underserved by traditional financial services.

Safaricom Ethiopia, which officially launched M-PESA mobile money services in August 2023, has played a key role in fostering digital financial inclusion. The company aims to further Ethiopia’s telecom liberalization agenda by providing mobile communication and financial services to a growing digital economy.

Safaricom’s Vision and Commitment

Safaricom’s involvement in Ethiopia reflects its strategy to extend mobile money services beyond Kenya, unlocking new regional opportunities. As the largest telecom operator in East Africa, Safaricom serves over 45.9 million customers in Kenya alone and has significantly contributed to financial inclusion in the country.

Since its launch in 2007, M-PESA has transformed Kenya’s financial landscape, increasing the adult population’s access to financial services from 26.7% in 2006 to 83.7% by 2021. The service remains an essential tool for savings, transactions, and credit services, generating KES 139.9 billion in revenue in the 2024 financial year.

In Ethiopia, Safaricom Telecommunications Ethiopia PLC — the first major foreign operator in the market — continues to invest in digital infrastructure to support the country’s transformation. The company has also been granted a Payment Instrument Issuer license by the National Bank of Ethiopia, positioning it to become a critical player in Ethiopia’s digital financial landscape.

A Broader Commitment to Inclusion and Sustainability

Safaricom remains committed to promoting sustainability and inclusivity across its operations. The company is working towards 50:50 gender parity in senior management by 2025 and strives to reduce its carbon footprint, with a long-term goal of becoming net-zero carbon-emitting by 2050.

Safaricom also emphasizes the importance of energy efficiency, aiming to lower carbon emissions by optimizing its network and facilities. The integration of sustainable practices reflects the company’s alignment with Sustainable Development Goals (SDGs).

A Growing Digital Ecosystem in East Africa

The integration of M-PESA services between Kenya and Ethiopia signals a significant step toward deeper regional economic integration. By enabling convenient and affordable cross-border payments, Safaricom is empowering businesses and individuals to participate in a broader digital economy.

This service complements other efforts in the region to improve financial inclusion and enhance trade. With the growing adoption of mobile money services in Ethiopia, the partnership between Safaricom Kenya and Safaricom Ethiopia is set to drive further adoption of digital payments.

Conclusion

The launch of M-PESA Global in Ethiopia underscores Safaricom’s commitment to expanding its financial services footprint across Africa. The partnership between the two countries provides a reliable platform for cross-border payments, fostering economic ties and promoting financial inclusion.

As more customers embrace digital payments, this initiative is expected to unlock new economic opportunities and enhance the digital economy in both Kenya and Ethiopia. Safaricom’s continuous investment in mobile money solutions and infrastructure positions it as a key player in shaping the future of digital finance in East Africa and beyond.