The Council of Ministers officially approves the amendment to the national payment system proclamation no. 718/2011, first issued in 2011. Following the approval of the proclamation, it will allow foreign investors to participate in the country’s financial systems, at least for the time being, as payment operators and progress with close supervision. The framework will enable highly experienced foreign companies to enter the Ethiopian payment system. It will encourage the increased use of a cashless economy, ensure financial inclusion, and develop the digital payment ecosystem. Additionally, the payment service providers, including operators, participants, issuers of payment instruments, and any other entity acting as their agent or through outsourcing arrangements, may operate fully or partially in the nation.
The National Bank of Ethiopia is developing detailed directives that will allow the incoming operators to obtain a license. As the first private and international investor in the telecom sector, Safaricom announced its intention to enter the mobile money market in the nation. The government has finally granted its request; as a result, the Kenyan telecom company is anticipated to be among the first international businesses to attract fintech investment. The company has gained notoriety for its ground-breaking M-Pesa mobile money service.