ETHIOPIA – Dahabshiil, an African money transfer company, has allied with M-PESA Safaricom-Ethiopia to facilitate remittances for the Ethiopian diaspora.
The agreement, signed in Addis Ababa, would allow Ethiopians living abroad to send money directly to family members or friends’ M-PESA mobile wallets.
According to a joint statement, this agreement would improve remittance, resulting in quicker transactions and increased security.
Musse Mohamed, Ethiopia’s representative in Dahabshiil, said: “This relationship enables us to fulfill our aim of providing accessible and dependable financial services by using M-PESA’s growing client base. Together, we’re making it easier and safer for Ethiopians living overseas to help their family at home.”
Founded in 1970, Dahabshiil has roots in Somalia but has since expanded its services to serve customers worldwide.
The company’s primary focus is facilitating money transfers to and from other countries, with a significant emphasis on helping the African diaspora and communities across the continent.
Anthony Kangethe, acting chief digital financial services officer for M-PESA Safaricom, stated that the new relationship will provide Ethiopians with a secure and convenient means of transferring and receiving money.
“We share a vision of promoting financial inclusion and driving economic development. This new service will give Ethiopians a secure and convenient means to send and receive money, empowering individuals and families,” he said.
The two companies have committed to promoting financial inclusion and economic growth in Ethiopia, noting that the partnership signifies their commitment to innovation and exceptional customer service.
Dahabshiil, which operates in more than 100 countries globally, has been a key player in African remittances, providing a platform for those in the diaspora.
M-Pesa, on the other hand, provides individuals with quick and easy financial services through mobile phones.
According to the World Bank, remittance flows to sub-Saharan Africa reached US$54 billion in 2023- an increase from the previous year’s gain.
This increase was driven by strong remittance growth in countries like Mozambique, Rwanda, Kenya, and Ethiopia.
Receiving remittances is crucial in reducing poverty and contributing to a country’s GDP.
Ethiopia generates more than US$5 billion in remittances annually.
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