A transformative development is taking shape in Ethiopia’s financial landscape. Safaricom Telecommunications Ethiopia PLC, a subsidiary of the pan-African telecom giant, has entered into a strategic partnership with Awash Bank to launch Errif be M-PESA, an innovative overdraft service aimed at reinventing access to credit and advancing financial inclusion across the nation.
This service targets customers with a minimum of 90 days of active M-PESA usage, empowering them to execute a wide range of transactions, including airtime purchases, utility bill payments, merchant transactions, and even small peer-to-peer transfers, without the immediate need for sufficient wallet balances.
This innovative tool lets users with 90 days of M-PESA activity borrow for airtime, bills, and more, with a 3% access fee and a capped 5 Birr daily maintenance fee (waived for the first two days).
It echoes Kenya’s Fuliza, a mature service by Safaricom with NCBA and KCB, which supports 7.1 million users with KES 2.6 trillion disbursed for various transactions, charging a 1% access fee and reduced daily maintenance costs.
A Positive Partnership Driving Digital Finance
The collaboration capitalises on Awash Bank’s deep expertise in digital banking, built over decades as Ethiopia’s largest private commercial bank, with a reported gross profit of 22 billion Birr in its most recent financial year (2024/2025).
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This expertise is complemented by Safaricom Ethiopia’s rapidly developing mobile money ecosystem, which has grown exponentially since its launch in 2023.
M-PESA Ethiopia, an adaptation of the globally recognised mobile money platform, has already onboarded over 10 million active users in just four years, supported by an investment exceeding 300 billion Ethiopian Birr in network infrastructure and service development.
The partnership enables the direct provision of digital credit through mobile phones, a feature that integrates seamlessly with existing M-PESA functionalities.
Early data suggests a pilot phase has seen over 50,000 transactions processed, with plans for a nationwide rollout pending final regulatory approvals from the National Bank of Ethiopia, expected by late 2025.
A Commitment to Inclusion and Economic Empowerment
At its core, the Errif by M-PESA service embodies a shared commitment between Safaricom Ethiopia and Awash Bank to deliver accessible, secure, and inclusive financial services.
Ethiopia, with a population of over 120 million, has long faced challenges in extending traditional banking services beyond urban centres, leaving approximately 70% of its citizens without formal financial access, according to World Bank estimates.
This initiative targets these underserved and unbanked communities by improving liquidity and providing microloan access, enabling small business owners, farmers, and households to manage cash flow more effectively.
Awash Bank contributes its extensive branch network, spanning over 500 locations, and a robust digital platform, while Safaricom Ethiopia leverages its mobile penetration, reaching even remote areas like the Amhara and Oromia regions.
A Potential Catalyst for a Digitally Empowered Economy
Could this partnership signify a huge step toward a digitally empowered Ethiopian economy? The timing aligns with broader sectoral shifts, including the liberalisation of Ethiopia’s telecom market following the entry of global players like Safaricom and government initiatives to digitise public services.
The service’s potential to unlock economic growth is significant; experts estimate that increased financial access could boost GDP by 1-2% annually if adoption scales effectively.
However, challenges loom large, including the need for improved rural connectivity (where only 25% of areas currently have reliable 4G), regulatory compliance with Ethiopia’s strict financial laws, and ensuring the service remains affordable for low-income users.
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The Central Statistics Agency reports that mobile money usage has risen by 15% year-on-year, suggesting a growing appetite for such innovations, yet scalability will require sustained investment and public-private collaboration.
Looking ahead, the success of Errif and M-PESA could set a model for other African nations, potentially influencing regional financial inclusion strategies. For now, it represents a bold experiment in leveraging technology to address economic disparities.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, and digital finance at Africa Digest News.
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