Speaking about the new strategic business unit that will manage the mobile money service, Frehiwot Tamiru, CEO, Ethio Telecom, said:
“The new business wing will be regulated by the NBE not by the Ethiopian Communication Authority (ECA).”
Currently, foreign firms are not allowed to engage in mobile money services in Ethiopia. According to an NBE directive, only Ethiopian nationals and Ethiopian diaspora can engage in mobile financial transaction services.
The ECA is in the process of licensing two foreign telecom operators. These will however not be allowed to engage in mobile money services, at least for the next three years before the financial reform program.
The Ethiopian mobile money service is expected to generate up to $13 billion by 2025 making it a lucrative opportunity for Ethio Telecom.
The latest report shows the telecom now has a total subscriber base of 46.2 million which is an increase of 5.8% from the previous year.