Ethiopia Launches M-Pesa Lite in Landmark Move Toward Digital Financial Inclusion

Ethiopia has taken a significant step forward in its digital transformation journey with the official launch of M-Pesa Lite, a simplified and more accessible version of the renowned mobile money platform. The launch marks a watershed moment for digital finance in one of Africa’s most populous nations.

Developed to meet the needs of a wider demographic, M-Pesa Lite is designed to operate smoothly on both Safaricom and Ethio Telecom SIM cards, introducing a new era of cross-network interoperability. This breakthrough allows millions of Ethiopians, regardless of their mobile provider, to send and receive money, pay bills, and conduct daily transactions with unprecedented ease and security.

The newly released "M-Pesa for All" app, part of the Lite initiative, promises a seamless user experience with simplified features aimed at first-time digital users, particularly in rural and underserved communities where smartphone penetration is growing but digital literacy remains a challenge.

“This is not just a product launch—it’s a financial empowerment tool,” said a Safaricom Ethiopia spokesperson. “We are enabling millions of Ethiopians to participate in the digital economy, many of them for the very first time.”

The launch aligns with Ethiopia’s national goals for digital inclusion, outlined in its Digital Ethiopia 2025 strategy, which prioritizes universal access to affordable digital services and the development of a thriving fintech ecosystem. With traditional banking services often out of reach—especially in rural areas—the mobile-first approach offers a scalable solution to financial exclusion.

According to recent World Bank estimates, nearly 70% of Ethiopian adults remain unbanked. Mobile money platforms like M-Pesa are seen as game-changers, offering accessible financial services that don't rely on brick-and-mortar banking infrastructure.

Industry analysts say the interoperability between Safaricom and Ethio Telecom networks is particularly significant. It not only eliminates longstanding barriers to mobile payments but also enhances competition, lowers transaction costs, and encourages innovation within Ethiopia’s nascent fintech sector.

“M-Pesa Lite has the potential to transform Ethiopia’s financial landscape,” noted fintech consultant Frehiwot Getaneh. “It introduces convenience, security, and flexibility at a time when the country is rapidly digitizing its economy.”

With more than 110 million people, a young and increasingly connected population, and growing smartphone usage, Ethiopia is poised to become one of Africa’s leading digital economies. The success of M-Pesa Lite could serve as a blueprint for expanding mobile financial services across similar emerging markets.

As Ethiopia steps into this new phase of fintech evolution, stakeholders hope that continued innovation, regulatory support, and public-private collaboration will help build a more inclusive financial future for all citizens.

SOURCE: AGENCIES