Ethiopia goes for mobile money
Ethiopia successfully piloted its first mobile money-transfer service (M-BIRR) in 2013 and 2014. It now has its sights firmly set on rolling out mobile money networks in the hope of reducing transaction costs and increasing financial inclusion throughout the country. Foreign firms are providing services to support the development of mobile banking in Ethiopia, which includes the wider roll-out of M-BIRR and introduction of competing services (such as helloCash). Also, the state-owned Commercial Bank of Ethiopia is considering its own mobile money service. Ethiopian banks and institutions will offer the mobile money service to customers and hold all cash deposits, thus avoiding breach of government restrictions that bar foreign firms or banks from investing in the financial sector or the telecoms industry. These developments could see a sharp increase in financial inclusion in Ethiopia over the coming years, as well as offering alternative payment methods for businesses, to and from their customers and suppliers.