Still, on mobile Money, Ethiopian mobile money provider Kacha has become the first private company in the country to get a Mobile Money licence from the National Bank of Ethiopia. This development is a big deal and let’s explain why;
There’s tight state control over the private sector that has prevented the industry from being quick to adopt new technologies, unlike in Nigeria, where evolution in financial technology has been private sector-driven. Mobile Money is relatively new in Ethiopia, with Telebirr, the fintech arm of Ethiopia’s state-owned telecommunication provider, Ethio Telecom, leading the way.
To encourage the transition to mobile Money, the Ethiopian government is encouraging private sector participation, and Kacha is the first private company to get a licence from its apex bank.