Ethiopia aims for Africa’s best digital payments network by 2035

Ethiopia has unveiled a strategic roadmap which aims to enable the country set up one of the leading digital payment networks on the continent in the next 10 years.

The country’s national interoperable digital payments platform EthSwitch recently signed a 15-year plan with partner Genesis Analytics to realize this ambition.

EthSwitch is a national switch owned by public and private banks in Ethiopia. Genesis Analytics is an economic and development consulting firm headquartered in Johannesburg, South Africa.

In an announcement on its Facebook page, the EthSwitch stated that the “strategy will focus on expanding digital financial products, improving service delivery for both existing and emerging customer groups, and strengthening the company’s role in driving innovation within the digital finance ecosystem.”

It added that as part of the agreement, a detailed assessment of EthSwitch’s current infrastructure will be carried out by Genesis Analytics to identify strengths, gaps, and opportunities for growth, and the outcome “will guide the design and implementation of a future-ready national digital payment system.”

Strategic deal with Mastercard

As part of its partnership expansion efforts and payments infrastructure boost, EthSwitch also recently signed a partnership agreement with Mastercard in Addis Ababa.

According to the terms of the deal, EthSwitch will be connected to the Mastercard network through the Mastercard Interface Point (MIP) and Mastercard’s global payment gateway services (MPGS), the company announced.

The partnership is expected to “advance Ethiopia’s digital payment ecosystem and deepen its connection to the global financial network,” and also make it possible for businesses in the country to accept international payments while significantly expanding opportunities for cross-border trade.

“This collaboration will allow Ethiopian banks to issue co-branded prepaid hard currency cards that offer global acceptance at ATMs, POS terminals, and online merchants, dramatically enhancing payment convenience for consumers and supporting the country’s transition to a cash-lite economy,” said EthSwitch.

EthSwitch’s interoperable digital payments infrastructure exemplifies what a digital payments expert suggested as one sure way to strengthen Africa’s digital payments landscape, in an interview with Biometric Update in September.

Article Topics

Africa  |  digital ID infrastructure  |  digital identity  |  digital payments  |  Ethiopia  |  Mastercard