Internet Banking on the Rise in Ethiopia

Internet banking in Ethiopia is transforming. By June 2024, the number of internet banking users reached 12.2 million. This growth reflects a strong interest in digital financial services. A key player in this expansion is Telebirr, a mobile money platform that has quickly gained popularity.

The number of mobile money agents in Ethiopia has also increased. By mid-2024, Ethiopia had 415,084 mobile money agents, a 78.1% increase from the previous year. Telebirr’s launch by Ethio Telecom has played a significant role in this growth. It has made financial services more accessible to many Ethiopians.

The Ethiopian government sees digital finance as vital for economic development. Initiatives to improve digital payment systems are underway. Daily digital transactions now average over 7.5 million, total transaction values exceeding 26.5 billion birr. These figures highlight the shift toward a more connected financial ecosystem.

Despite these positive changes, challenges remain. Many people lack basic digital skills, which limits their ability to use online banking services effectively. Unreliable internet access and frequent power outages create barriers to consistent usage of digital platforms. The legal framework for e-commerce and digital payments is also still developing, leaving consumers and businesses uncertain. Many Ethiopians continue to prefer cash transactions due to concerns about security and trust in technology.

However, growth opportunities are available in internet banking sector of Ethiopia. Increasing awareness and education can improve digital literacy among citizens. As more businesses adopt mobile payment systems, consumer confidence will likely rise.