This archive report was first published on 25 September 2019.
On September 25, 2019, the National Bank of Ethiopia proposed a directive to decentralize mobile transfer services, allowing non-financial institutions to offer mobile money services.
The move is part of the bank's efforts to improve the country's levels of financial inclusion. According to the World Bank, in 2017, only 35% of Ethiopia's population owned bank accounts.
The proposed directive will enable service providers to offer credit and savings, enroll individuals on various insurance products, and payout pensions. Major players like Ethio money will be able to serve the country's vast population if the directive receives approval.
Terms for Mobile Money Providers ¶
Companies requiring a mobile money license must have a minimum capital of Ksh 176.7 million ($1.7 million) and ensure that the majority shareholder does not contribute more than 5% of this capital.
The directive offers accounts with three different levels of transactions, including a basic account with a ceiling amount balance of Kshs 10,600, a daily aggregate of Kshs 1,060, and a monthly transaction limit of Kshs 21,200.
