M-PESA has signed an international money transfer agreement with Onafriq, one of Africa’s largest digital payment networks.
The deal allows M-PESA to tap into and leverage Onafriq’s extensive network, connecting 500 million mobile money wallets and 200 million bank accounts.
This follows clearance by the National Bank of Ethiopia to start the remittance service in July 2023.
Safaricom Ethiopia’s General Manager, Paul Kavavu, said the deal would make payments easier, and the incorporation of international money transfer services into M-PESA perfectly serves that purpose.
“Ethiopia generates more than five billion USD in remittances annually, and this partnership will provide the Ethiopian Diaspora with an easy and fast formal channel to send money to their loved ones in Ethiopia,” said Kavavu.
In 2023, the World Bank stated that remittances flow to countries in sub-Saharan Africa reached $54 billion—an increase from the previous year’s gain.
The increase was driven by strong remittance growth in Mozambique, Rwanda, and Ethiopia.
Nika Naghavi, Group Head of Growth at Onafriq, said the partnership will directly stimulate the realisation of Ethiopia’s digital transformation strategy.
The strategy, ‘Digital Ethiopia 2025,’ emphasises enabling systems through digital transformation, of which digital payments are crucial.
The country’s solution to this includes ensuring financial inclusion, innovation in the banking system, and the adoption of innovative solutions.
“We have always believed that payments should be a simple process, as simple as a phone call—connecting individuals through increased access,” said Naghavi.
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